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Palmetto prices rise after three sessions of bargain-buying losses

Palmetto prices rise after three sessions of bargain-buying losses

After three sessions of losses in a row, Malaysian palm oils futures rose on Wednesday. This was due to bargain hunters after the contract reached a two-month low.

The benchmark palmoil contract for June delivery at the Bursa Derivatives Exchange increased 0.33%, closing at 4,259 Ringgit ($962.05) a metric ton.

When prices reached the lowest point of the day, they were too low to ignore. "We saw a great deal of bargain-hunting today. A lot of buyers came out and there was also a good amount of (short)covering," said Paramalingam Supramaniam of Selangor brokerage Pelindung Bestari.

Intertek Testing Services, a cargo surveyor, said that exports of palm oil products from Malaysia for the period March 1-25 fell 8.1%, to 835.732 tonnes, month-on-month. AmSpec Agri Malaysia, an independent inspection company, estimated that exports had fallen 8.5% during the same period.

Palm oil, the most active contract on Dalian Commodity Exchange, fell by 0.9%. Soyoil rose 0.42% on the Chicago Board of Trade.

As palm oil competes to gain a market share in the global vegetable oils industry, it tracks the price changes of its rival edible oils. Reporting by Fransiska Naangoy and Bernadette Cristina; Editing done by Sumana Nanandy, Rashmi aich and Janane Vekatraman

(source: Reuters)