29/07/2008 (Daily Times), Kuala Lumpur - Malaysian crude palm oil futures rebounded on Monday, tracking soyoil’s rise, but further gains would likely depend on the strength of crude oil prices.

Oil rose towards $124 a barrel on Monday, rebounding from a seven-week low, in what analysts said was technical buying and short-covering after recent declines left the market oversold.

“Sentiment has stabilised temporarily but after this it will depend on crude oil,” a trader said. By midday, the benchmark October contract on the Bursa Malaysia Derivatives Exchange was up 2.6 percent, or 80 ringgit, at 3,150 ringgit ($969.8). Other traded months were between 55 ringgit and 87 ringgit higher. Overall volume was 3,284 25-tonne lots. The benchmark contract has fallen about three percent in the past week.

Commodities Minister Peter Chin was quoted on Sunday as saying the government would take urgent measures to counter the recent slide in international crude palm oil prices and ensure it does not become a long-term trend. Malaysia is the world’s second-largest producer of crude palm oil.

In the physical market, July/August crude palm oil was bid at 3,170 ringgit in the southern region against offers at 3,180 ringgit. Traders were seen at 3,170 ringgit. reuters