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Palm jumps 3% on lower output, still tight supplly

KUALA LUMPUR, Dec 16 (Reuters) – Malaysian palm oil futures jumped 3% on Thursday, recovering from the previous session’s steep decline, on tightening production and gains in rival soyoil.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange ended up 143 ringgit, or 3.35%, at 4,409 ringgit ($1,048.76) a tonne.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm had plunged 4.5% on Wednesday after cargo surveyors reported a larger-than-expected drop in exports during the first half of December.

Exports of Malaysian palm oil products for Dec. 1-15 fell 13.4% to 789,549 tonnes from the same period in November, cargo surveyor Societe Generale de Surveillance said.

Oil rose towards $75 on Thursday supported by record U.S. implied demand and falling crude stockpiles, even as the spread of the Omicron coronavirus variant threatens to put a brake on consumption globally.

Stronger crude oil futures typically make palm a more attractive option for biodiesel feedstock

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