06/12/2022 (Business Recorder), Jakarta - Malaysian palm oil futures rebounded on Monday as expectations of a drop in stocks buoyed prices, though a stronger currency and weakness in Dalian oils capped gains.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 0.30% to 3,964 ringgit ($907.92) a tonne by the afternoon closing, rebounding from a two-week low on Friday and a more than 4% weekly drop.

The contract rose as much as 3.41% earlier in the session as “external market improved and market poll was expecting November 2022 palm oil stockpiles dipped slightly,” a Kuala Lumpur-based trader said.

“However, firm ringgit limited some of the upside.” Malaysia’s palm oil inventories at end-November likely slipped from October as output slowed while imports jumped, a Reuters survey showed on Monday.

Soyoil prices on the Chicago Board of Trade gained 0.21% by afternoon trade in Asia hours, after losing 10.80% over the four previous sessions.

Dalian’s most active soyoil contract closed 0.24% lower, while its palm oil contract fell 2.01%. They rose as much as 1.03% and 0.62%, respectively, earlier in the session.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

The ringgit strengthened by 0.39% against the US dollar on Monday, its fourth day of gains and hit a seven-month high. A stronger ringgit makes palm oil less attractive for holders of foreign currencies.

Palm oil may drop further into a range of 3,837-3,891 ringgit a tonne, probably after a moderate bounce to 4,029 ringgit, Reuters technical analyst Wang Tao said.

https://www.brecorder.com/news/40212730/palm-oil-rises-on-likely-drop-in-stocks