JAKARTA, Aug 27 (Reuters) – Malaysian crude palm oil futures rose 3.8 percent on Wednesday, recovering some of this week’s losses due to improved demand and rebounding crude oil prices, dealers said.

Malaysian palm oil futures KPOc3 have tumbled nearly 45 percent since a record high in March on rising global vegetable oil supplies and faltering crude oil prices which have dimmed the prospects for the use of vegetable oils as alternative energy.

The have fallen about 18 percent since the start of the year.

The benchmark November crude oil contract KPOc3 settled up 93 ringgit, or 3.86 percent, at 2,502 ringgit ($739) per tonne on the day.

It hit a session high of 2,523 ringgit per tonne, rebounding from a one-week low of 2,406 ringgit marked on Tuesday.

“The market gained today only on the back of firm crude prices. But we are looking at range trading of 2,400-2,550 ringgit in the next 1-2 days,” said a dealer at a foreign brokerage firm.

Other traded contracts rose between 30 and 111 ringgit per tonne. Overall volume stood at 12,824 of 25 tonnes each.

U.S. crude oil rose for a third day Wednesday, boosted by the possibility that Tropical Storm Gustav could become the first major storm since 2005 to threaten U.S. oil and natural gas installations in the Gulf of Mexico.

Oil for October delivery CLc1 rose $1.42 to $117.69 a barrel by 1148 GMT, after settling up $1.16 on Tuesday.

Malaysian palm futures also got support from expectations that export demand would rise gradually as India and Pakistan were interested in buying, traders said.

“Low prices will lift some demand,” the dealer said.

But the high-cycle period which was extended from September-October to November, means demand may not enough to soak up stocks, he said.

Pakistan bought 25,000 tonnes of RBD palm oil and crude palm oil, traders said on Tuesday. [ID:nKLA007862]

India‘s Tamil Nadu state is in talks to buy 100,000 tonnes of refined, bleached and deodorised palm oil in the next few months, a trader involved in the deal said on Tuesday. [ID:nSP65001]

INDONESIA PALM FALLS

Indonesian crude palm oil prices fell on Wednesday as volatility in Malaysian palm oil futures sapped trading interest.

Crude palm oil prices at the state marketing centre’s auction in Jakarta fell to 6,604 rupiah ($0.721) per kg from 6,668 rupiah a kg on Tuesday.

Producers in Medan, North Sumatra — home to Belawan port, the country’s key port for palm oil exports — offered crude oil at 6,500-6,600 rupiah a kg, down from 6,540-6,650 rupiah a kg on Tuesday.

“Players are not aggressive today because the Malaysian market is not showing any signs of stabilising,” said a dealer at a plantation firm in Medan.

In Jakarta, refiners in offered refined, bleached, deodorised (RBD) palm olein — used as cooking oil — at 7,150-7,175 rupiah a kg, down from 7,450 rupiah a kg on Tuesday.

In the physical market in Malaysia, crude palm oil for delivery in September was offered at 2,500/2,510 ringgit a tonne in south and central region. No trades were done.

Â

Bookmark to