Palm Oil Rebounds on Bargain Buying and Crude Price Surge

Malaysian palm oil futures rose on Wednesday after two sessions of decline due to bargain buying and a rebound in crude oil prices.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 21 ringgit, or 0.45%, to 4,663 ringgit ($1,140.93) per metric ton at the close.

Anilkumar Bagani, commodity research head at Sunvin Group, attributed the increase in palm oil prices to a rebound in energy prices and strong physical coverage from India.

The optimistic increase in Malaysian palm oil exports this month also cushioned prices, with cargo surveyors estimating an 8.1% to 15.9% rise in exports for July 1-25 compared to the previous month.