KUALA LUMPUR: Malaysian palm oil futures rebounded from losses to gain over 1 per cent at the end of the trading day on Tuesday, snapping six days of losses, lifted by profit-taking and gains in soyoil on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange rose 1.7pc to 2,408 ringgit ($619.26) a tonne at the close of trade, its strongest daily gain since the start of the year.
The market earlier fell to 2,354 ringgit, its lowest level since March 12, before rising as much as 2.7pc to 2,434 ringgit in the evening. Trading volumes stood at 68,249 lots of 25 tonnes each.
“The market was oversold following six earlier days of losses,” said a palm oil futures trader based in Kuala Lumpur, adding that a recovery in CBOT soyoil also aided palm oil.
Palm oil prices are affected by movements in rival edible oils, as they compete for a share in the global vegetable oils market.
Published in Dawn, April 18th, 2018
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