28.11.2019 (Business Recorder) - Malaysian palm oil futures closed higher on Wednesday, supported by bargain buying after the previous session's losses, although gains were capped by cheaper rivals on the Dalian and a stronger ringgit.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange closed 0.5% higher at 2,690 ringgit ($645.08), after falling as much as 3.6% in the previous session.

“Bargain hunting kicked in," said a Kuala Lumpur based trader.

But cheaper rivals on the Dalian Commodities Exchange limited the gains. Palm oil is affected by moves in related oils as they compete for a share of the global vegetable oils market.

Dalian's January palm oil contract fell 2.1%, while the soyaoil contract last traded 0.5% lower.

“Palm is still cheapest but its appeal has slowed due to narrowing discount over competition," said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker.

The palm oil contract on the Dalian traded lower as palm oil imports by China soared, Bagani said. Chinese imports of palm oil jumped 24.4% in October from the month earlier, Refinitiv data showed. From the year ago, it has more than doubled.

Elsewhere, soyabean oil on the Chicago Board of Trade traded 0.4% higher.