KUALA LUMPUR, Aug 3: Malaysian crude palm oil futures rebounded on Wednesday, helped by a rally in rival US soyaoil, but gains were capped by worries about rising supply.
Despite the strong gains in soyabean oil, palm oil is not moving as much because stocks are expected to build up again. Production is going up while exports are coming off, said a trader, pegging strong resistance at 1,400 ringgit a ton.
Other traded months settled up 7 to 12 ringgit.
Overall volume was a thin 2,811 lots, half of Tuesday’s 5,709 lots.
Palm oil is exported in dollars. But its futures prices, which also determine export prices, are quoted in ringgit.
Soya and palm compete for export markets and their prices often move in step.
In physical dealings of crude palm oil on Wednesday, August contract was offered at 1,355 ringgit a ton against bids of 1,352.50 ringgit in the southern and central regions of Malaysia.
Trades were reported at 1,345-1,352.50 ringgit in both regions.—Reuters
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