SINGAPORE, Nov 7: Malaysian palm oil futures gained on Wednesday, snapping three days of losses, with investors buying after prices dropped to a one-month low earlier in the session and on concerns year-end floods in the country could hurt production.

“I heard there are worries about floods in the Johor area, and we have also seen some technical buying,” said a Singapore-based trader with a global commodities house, referring to the state that accounts for almost 15 per cent of Malaysia’s total palm production.

The benchmark January contract on the Bursa Malaysia Derivatives Exchange gained 1.1 per cent to close at 2,397 ringgit ($786) per ton. Prices earlier fell to their weakest since Oct 8 at 2,364 ringgit. Total traded volumes stood at 43,064 lots of 25 tons each, much higher than the usual 25,000 lots.

Technicals showed palm oil could rebound to 2,423 ringgit, as support held firm at 2,377 ringgit, Reuters market analyst Wang Tao said.

Malaysia’s palm oil exports rose 10 per cent to a 2012-high at 1.6 million tons in October.—Reuters