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Malaysian palm oil futures rose on Wednesday, snapping two sessions of losses, tracking gains in the Chicago soyoil market, as the market awaits stockpile data from the Malaysian Palm Oil Board (MPOB).
A trader based in Kuala Lumpur said: "The contract will try to recoup some of yesterday's losses before resuming its trend, ahead of the MPOB data due next Monday."
Soyoil prices on the Chicago Board of Trade rose 0.77%, while the most active soyoil contract on the Dalian exchange fell 1.51%, and the palm oil contract lost 1.21%.
Palm oil tracks price movements of competing vegetable oils, as it vies for a share of the global vegetable oil market.
Malaysia's palm oil stocks are expected to fall in February to their lowest level in nearly three years, due to production disruptions caused by floods, according to a Reuters survey.
Meanwhile, India's palm oil imports rose 36% month-on-month in February, after falling to their lowest level since March 2011 in January, according to trader estimates.
Oil prices fell for a third consecutive day on Wednesday, weighed down by major producers' plans to raise output in April, alongside concerns that US tariffs on Canada, Mexico and China could slow economic growth and fuel demand, denting investor sentiment.
Weaker crude oil futures make palm oil a less attractive option as a feedstock for biodiesel production.
Meanwhile, the Malaysian ringgit, the currency used in palm oil trade, rose 0.83% against the US dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
Source: Reuters