Palm oil resurges on Indian demand

Futures closed 1% higher, after dropping 0.8% on Tuesday.

KUALA LUMPUR: Palm oil has bounced back to track gains in soybean oil and energy prices, with a recovery in demand from top buyer India further underpinning the tropical oil.

Futures closed 1% higher, after dropping 0.8% on Tuesday. Soybean oil, palm’s closest substitute for food and fuel, advanced 1.8% in Chicago ahead of a US government report that’s likely to show a cut in the country’s soybean production estimate for this year. Brent oil extended its rally, boosting palm’s biofuel appeal.