Palm rebounds from one-week low on stronger crude prices

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KUALA LUMPUR (Jan 11): Malaysian palm oil futures rebounded from a one-week low on Friday, tracking rises in crude oil prices.

The market earlier fell on concerns of oversupply and overnight soyoil weakness on the Chicago Board of Trade (CBOT). 

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was up 0.4% to 2,171 ringgit (US$530.29) a tonne at the close of trade.

It earlier fell to 2,146 ringgit, its lowest since Jan 4, but traded flat for the week.

Trading volumes stood at 22,365 lots of 25 tonnes each at the end of the trading day. 

"Palm prices rose on crude oil's gains," said a Kuala Lumpur based trader. 

Oil prices rose 1% on Friday, on track for solid weekly gains after financial markets strengthened due to hopes the United States and China may soon resolve their trade dispute.

Tightened supply following OPEC-led cuts in crude output also aided gains, but fears of an economic slowdown have kept markets in check.

Palm oil prices are impacted by movements in crude oil, as it is used as feedstock to make biodiesel. 

The Chicago March soybean oil contract fell 1.4% on Thursday, but was last up 0.5% on Friday. 

In other related oils, the March soybean oil contract on the Dalian Commodity Exchange fell 0.5%, and the Dalian January palm oil contract rose 0.4%.

 Palm, soy and crude oil prices at 1112 GMT:  

 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       JAN9        0   +6.00       0       0       3
 MY PALM OIL       FEB9     2122   +6.00    2103    2127    1902
 MY PALM OIL       MAR9     2173   +8.00    2146    2174   10591
 CHINA PALM OLEIN  JAN9     4370   -2.00    4370    4498     158
 CHINA SOYOIL      JAN9     5134  +34.00    5100    5200     840
 CBOT SOY OIL      JAN9    27.94   +0.00       0       0       0
 INDIA PALM OIL    JAN9   543.50   +3.10  539.50   543.5    1049
 INDIA SOYOIL      JAN9    761.2   -0.20   759.9   764.5    2680
 NYMEX CRUDE       FEB9    53.04   +0.45   52.14   53.31  169222

 Palm oil prices in Malaysian ringgit per tonne
 CBOT soy oil in U.S. cents per pound
 Dalian soy oil and RBD palm olein in Chinese yuan per tonne
 India soy oil in Indian rupee per 10 kg
 Crude in U.S. dollars per barrel
 
(US$1 = 4.0940 ringgit)
(US$1 = 70.3710 Indian rupees)
(US$1 = 6.7491 Chinese yuan)