KUALA LUMPUR: Palm oil futures rebounded on Tuesday from a three-day low to chart their strongest daily gain in a week, tracking stronger soyoil prices and supported by forecasts of weaker output.

Benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange rose 1 per cent to 2,809 ringgit ($635) a tonne at the end of the trading day, the biggest daily gain since March 15.

The contract earlier fell to an intraday low of 2,754 ringgit, its lowest in three days. Traded volumes stood at 49,508 lots of 25 tonnes each on Tuesday evening.

The market rose due to forecasts of weaker output and supportive soyoil on the Chicago Board of Trade, said a futures trader from Kuala Lumpur. Malaysian output fell 1.4pc in February from January, while end-stocks declined 5.3pc to 1.46 million tonnes.

Palm was earlier trading in a range and was down at the midday break as related edible oils weakened and demand slowed. Palm oil exports from Malaysia, the world’s second largest producer of the tropical oil, fell between March 1-20 compared with the same period a month ago.

Published in Dawn, March 22nd, 2017