Malaysian palm oil futures on Tuesday rose off nine-month lows hit in the previous session as crude prices jumped, although gains were limited by forecasts for higher April inventory.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 4 ringgit, or 0.25%, to 1,987 ringgit ($461.56) per tonne by 0313 GMT.
Palm oil plunged 5% to its lowest since July 23, 2019, on Monday as analysts and traders predicted that April-end stocks would rise by 9% due to slowing exports and rising production of the vegetable oil.
Oil prices climbed in early trade on expectations that fuel demand will begin to pick up as some U.S. states and nations in Europe and Asia start to ease coronavirus lockdown measures.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
European Union palm oil imports in the 2019/20 season fell 15% to 4.66 million tonnes by May 3, versus the year-earlier period.
Malaysia criticised the World Health Organisation on Monday for advising adults to avoid palm oil in their diet during the COVID-19 outbreak and use alternatives such as olive oil.
Soyoil prices on the Chicago Board of Trade (CBOT) were up 0.3%. The Dalian was closed for trading.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may drop more, into a zone of 1,921-1,954 ringgit per tonne, as suggested by its wave pattern and a projection analysis, Reuters technical analyst Wang Tao said.