Palm snaps losing streak on bargain hunting, tight supply outlook

Malaysian palm oil futures rebounded on Wednesday, ending three straight sessions of losses, buoyed by bargain buying activity and expectations of tighter output in the coming months. The benchmark palm oil contract FCPO1! for December delivery on the Bursa Malaysia Derivatives Exchange rose 38 ringgit, or 0.87%, to 4,390 ringgit ($1,044.00) a metric ton at close. There is significant buying activity at the lower price levels and substantial crude palm oil purchasing at destination markets, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. “With production showing no signs of recovery, at least not in the fourth quarter due to seasonal factors, coupled with sustained demand, prices should remain resilient in the long run,” he added. The annual festival season in India, the world’s largest vegetable oil buyer, runs from late September to early November. “Exports are expected to rise in the coming months on festive season demand,” Ahmad Parveez ...