Malaysian palm oil price reverses losses on tight supply

palm oil aerial

SINGAPORE: Malaysian palm oil futures reversed earlier losses to trade over 1% higher on Thursday after Indonesia announced its plan for a biodiesel push to reduce fossil fuel use by 165,000 barrels per day (bpd) and as supply outlook dimmed.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange traded 1.5% higher at 2,726 ringgit ($653.72) per tonne at closing, after falling to as low as 2,645 ringgit earlier in the session.