SINGAPORE (June 15): Malaysian palm oil futures rose 2% today after six days of consecutive losses as traders bought oversold contracts, although gains were capped by cheaper rival oils.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose RM68, or 2%, to RM3,443 a tonne. The contract dropped 7.8% to its lowest in more than four months yesterday.
Capping gains, however, were cheaper rival oils on the Chicago Board of Trade (CBOT) and the Dalian Commodity Exchange.
CBOT soybean futures lost more ground today, setting it for a fifth straight decline.
Soybean oil and palm oil on the Dalian fell 6.1% and 7.6% respectively.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may extend its loss to support at RM3,195 per tonne, around which it may pause the steep fall and start a bounce, Reuters technicals analyst Wang Tao said.
Fundamentals:
Oil prices rose, with Brent gaining for a fourth consecutive session, as the prospect of extra supply coming to the market soon from Iran faded with talks dragging on over the US rejoining a nuclear agreement with Tehran.
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