KUALA LUMPUR: Malaysian palm oil futures recorded their biggest daily gain in two weeks on Thursday, ending six sessions of losses as they tracked strength in soyoil and were helped by a technical correction.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed up 1.6 percent at 2,504 ringgit ($569.61) a tonne.
Turnover for the day totalled 64,542 lots of 25 tonnes each.
"Exports are poor, so soyoil could have helped with a technical rebound, as the market is technically oversold," said a futures trader from Kuala Lumpur.
Palm oil prices are influenced by movements in rival edible oils as they compete for a share in the global vegetable oils market.
Soybean oil on the Chicago Board of Trade rose 0.4 percent, while the September soybean oil contract on the Dalian Commodity Exchange was up 0.03 percent.
Palm oil exports between April 1-20 had come in weaker than expected, with traders forecasting stronger gains on the month ahead of Ramadan, the Muslim holy month of fasting.
Palm oil shipments from Malaysia, the world's largest producer after Indonesia, fell 1 percent during April 1-20 compared with a month earlier, according to data from cargo surveyor Intertek Testing Services.
Societe Generale de Surveillance data, however, showed a 4.7 percent gain in the same period.
Ramadan typically sees higher consumption of palm oil for cooking purposes in regions such as India and the Middle East.
In other related vegetable oils, the September contract for palm olein was up 0.5 percent.
Reuters reported from London that Prices on the European vegetable oils market were marked up on Thursday after Malaysian futures broke a six-session falling streak and U.S. soyoil rose for a second day.
Offers were trimmed after buyers in Europe baulked at early prices, leading to some afternoon trade, but activity was restrained with many market participants heading off to an industry event in Rotterdam, traders said.
Crude palm oil (CPO) was offered between $2.50 and $7.50 higher compared with Wednesday by the end of the session.
A deal was reported in CPO at $650 a tonne, CIF Rotterdam, for June delivery, helped by a scaling back in offers for that position from $667.50 to $652.50, traders said.
Prices for lauric oils were mixed. Palmkernal offers were flat to higher while coconut offers were flat to lower.
Coconut oil of Philippine or Indonesian origin changed hands at $1535 a tonne, CIF Rotterdam, for June/July delivery, in line with late offers.
A deal was also reported for nearby April/May delivery at a steep $1935 a tonne, suggesting a buyer had to cover urgent needs, traders said. No further offers were quoted for April/May.
Rapeseed oil was marked up 5 euros for all positions and also generated some trading (see below).
European prices were buoyed by the bounce in Malaysian palm oil futures, which halted a run of six falling session, and continued strength in Chicago soyoil despite an easing in U.S. soybeans.- Reuters
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