Palm oil rises over 1% in early trade

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KUALA LUMPUR (May 7): Malaysian palm oil futures rose over 1% in early trade on Tuesday, recovering from an over five-month low hit in the previous trading session.     

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was last up 1.6% at RM2,016 (US$486.25) a tonne.

FUNDAMENTALS

* Malaysian palm oil futures fell to their lowest in more than five months on Monday as US President Donald Trump's threats to increase tariffs on Chinese imports risked prospects of a trade deal, sending commodities and stock markets lower.

* Chicago soybean futures lost more ground on Tuesday with prices dropping for an eighth consecutive session as fresh trade tensions between Washington and Beijing weighed on the market.

* Oil prices were mixed on Tuesday as US sanctions on oil exporters Iran and Venezuela kept markets on edge while concerns that an escalating Sino-US trade dispute could slow the global economy also kept crude somewhat in check.

MARKET NEWS

* Asian shares wallowed near five-week lows early Tuesday after Trump's tariff threat re-ignited worries about US-China trade tensions, while Japan's Nikkei opened down after a 10-day break.

* The dollar hung near a five-week low against the yen on Tuesday after worries about US-China trade tensions rekindled fears about the outlook for global growth.

* US stocks fell on Monday after Trump pledged to raise tariffs on Chinese goods, though Wall Street finished well off its session lows as some investors saw Trump's comments as a bargaining tactic and expressed confidence in an eventual trade agreement.