months yesterday as traders took up positions after rival vegetable oil

markets rose.

Traders said palm oil as well as US and China

soyoil markets gained after falling on concern that key commodities

importer China could tighten credit after a slew of positive economic

data.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled up 1.8 per cent, or RM44 to RM2,488 after dropping to RM2,407 — a level not seen since November 19.

“The

market is oversold and RM2,400 is the immediate support level but right

now there are not many helpful factors to support it,” said a trader

with a local commodities broker.

“China tightening credit is a concern and stocks are high.”

But

other traders say there may be some momentum to push the market towards

its 200-day moving average of RM2,354 on high stocks, weak export

growth and the rising US dollar.

“In Malaysia, there is no

margin for refiners. The right price for them is RM2,400, but

plantation sellers want to quote higher,” said a refiner in the

Malaysian capital.

“This is not taking into account that stocks in December were at a 13-month high.”

Stocks in Malaysia, the world’s No. 2 palm oil producer, usually fall from December onwards but plantations in top producer

Indonesia shipped cargoes over the last month to escape a 3 per cent export tax that was introduced in January.