"The market may speculate about the export number in the afternoon, but overall the trend is still bearish partly because the discount versus soybean oil is narrowing," said a trader with a Kuala Lumpur-based brokerage. Stronger exports and a dip in production are key to bringing down palm oil stock in the world's number 2 grower, from a 13-month high in December. Palm oil prices normally correlate inversely with palm oil stocks.
Cargo surveyor Intertek Testing Services and Societe Generale de Surveillance are due to unveil Malaysia's January 1-20 palm oil exports on Wednesday, at 0100 and 0630 GMT. With the US markets closed on Monday, there was not much news to drive the market, another Malaysian trader said, adding that any rumours on export figures will likely drive the market in the afternoon session.
In Asian hours, most active March US soyoil rose 0.6 percent and the most active September soyoil in China's Dalian exchange also gained 0.6 percent. Oil prices rose above $78 on Tuesday on expectations that Chinese economic indicators to be published this week will signal strong demand growth from the world's second-largest oil consumer.