Malaysian palm oil/Vegoils: Market factors to watch Wed Dec 5

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was up 2.7 percent at 2,518 ringgit ($618) at the close of trade, its first gain in three sessions and its sharpest rise since July 25. It earlier hit an intraday high of 2,525 ringgit, its highest level in a week, and rose 1.6 percent on the week after six consecutive weekly falls.

KUALA LUMPUR: The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets.

FUNDAMENTALS

* Malaysian palm oil futures reversed earlier losses to gain at the end of the trading day, supported by a correction and on strength in crude oil prices.

* UU.S. soybean futures edged higher on Tuesday on hopes that a U.S.-China trade war truce over the weekend would result in fresh Chinese demand for U.S. soybeans, although no deals have been confirmed.

* U.S. oil prices slipped by 1 percent early on Wednesday, weighed down by a plunge in global stock markets amid concerns over an economic slowdown.

MARKET NEWS

* Asian stocks fell on Wednesday, dragged by Wall Street's tumble as sharp declines in long-term U.S. Treasury yields and resurgent trade concerns stoked investor worries about global economic growth.

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DATA/EVENTS

Cargo surveyor AmSpec releases Malaysia's Dec 1-10 palm oil export data on Dec 10.

Cargo surveyor SGS releases Malaysia's Dec 1-10 palm oil export data on Dec 10. - Reuters