(Adds closing prices)
By Mei Mei Chu
KUALA LUMPUR, Jan 9 (Reuters) - Malaysian crude palm oil futures rallied on
Thursday, recouping losses suffered this week, as India's move to restrict
imports of refined palm oil boosted prices, while signs of de-escalation in
Iran-U.S. tensions soothed concerns.
The benchmark palm oil contract for March delivery on the Bursa
Malaysia Derivatives Exchange closed at 72 ringgit, or up 2.4%, at 3,113 ringgit
($761.50), on speculation India might import more crude palm oil to refine
itself.
That was its strongest gain in five sessions.
India imposed restrictions on refined palm oil and palmolein imports on
Wednesday, a move sources said was a retaliation against top supplier Malaysia
after its criticism of India's actions in Kashmir and a new citizenship law.
The move would lead to a loss of market share for Malaysia in refined palm
oil and spark a price war with rival supplier, Indonesia, which has
traditionally been more cost competitive, the Palm Oil Refiners Association of
Malaysia said on Thursday.
Meanwhile, U.S. President Donald Trump on Wednesday tempered days of angry
rhetoric and said Iran was "standing down" after its missile attacks at U.S.
forces in Iraq left no casualties, while Tehran said the strikes "concluded" its
response to the killing of military leader Qassem Soleimani.
December crude palm oil stockpiles in Malaysia likely fell 8.5% from
November to their lowest in 27 months due to dry weather and lower fertiliser
usage, a Reuters survey showed on Sunday.
Dalian's most-active soyoil contract rose 2.6%, while its palm oil
contract dipped 0.03%. Soyoil prices on the Chicago Board of Trade
gained 0.2%.
Palm oil is affected by price movements in related oils as they compete for
a share in the global vegetable oils market.
Palm, soy and crude oil prices
at 1019 GMT Contract Month Last Change Low High Volume
MY PALM OIL MAR0 3113 +72.00 3038 3124 24034
MY PALM OIL FEB0 3120 +68.00 3050 3134 1720
MY PALM OIL JAN0 3120 +82.00 3088 3120 99
CHINA PALM OLEIN JAN0 0 +0.00 0 0 0
CHINA SOYOIL JAN0 0 +0.00 0 0 0
CBOT SOY OIL MAR0 34.94 +0.38 34.57 34.95 12850
INDIA PALM OIL JAN0 831.50 +7.10 825.40 835 1672
INDIA SOYOIL JAN0 940 +10.00 930.6 940.6 8260
NYMEX CRUDE FEB0 59.63 +0.02 59.51 60.31 118750
($1 = 4.0880 ringgit)
(Reporting by Mei Mei Chu; Editing by Shailesh Kuber and Mark Potter)
Our Standards: The Thomson Reuters Trust Principles.