The benchmark September contract on the Bursa Malaysia Derivatives MYR7 higher at MYR2,384 a metric ton.
CPO prices fell as much as 0.3% to MYR2,371/ton, its lowest level in a month, but the weak selling pressure prompted some investors to cover their short positions, enabling prices to move into positive territory in the afternoon, traders said.
"Prices hadn't declined to MYR2,360 level since last year and the bears were keen to see if that support is easily broken," a Malaysia-based exporter said. "As prices weren't able to breach MYR2,360/ton, prices should move upwards to MYR2,395/ton-MYR2,410/ton based on technical indicators."
July soyoil on the Chicago Board of Trade was trading 5 points higher at 37.98 cents a pound around the close on the BMD.
The weaker ringgit also spurred mild buying interest in CPO by palm refiners. The commodity is priced in ringgit, so when the currency weakens, profit margins improve. The dollar rose to MYR3.2300 from MYR3.2170 Tuesday.
Meanwhile, CPO's 11% decline since the beginning of the year may steer bargain-hunters to the cash market and support positive movement on the BMD, a Singapore-based broker said.
In July, India may buy 400,000 tons of CPO, accounting for 62% of its edible oil imports next month, an industry executive said.
"International prices are much lower, while a lack of oilmeal demand is impacting domestic crushing," said Srinivaas Sirigeri, managing director of Shakti Enterprises, a Mumbai-based edible oil importer.
India is the world's second-largest edible oil buyer after China. It imports palm oil from Malaysia and Indonesia, and soyoil from Argentina and Brazil.
In the cash market, palm olein was traded at $792.50/ton and then $795/ton for July, $780/ton for October and $762.50/ton for October/November/December shipment, free-on-board Malaysian ports, another Singapore-based broker said.
CME Group Inc.'s dollar-based CPO futures contract for September was $7.75 lower at $736.50/ton around 1030 GMT, with one lot traded. One lot is equivalent to 25 tons.
Rupiah-denominated August CPO futures on the Indonesia Commodity and Derivative Exchange ended 0.3% lower at IDR6,420 a kilogram, with four lots traded. One lot is equivalent to 10 tons. The September contract was trading 0.2% higher at IDR6,285/kg, with 257 lots done.
Open interest on the BMD was 76,705 lots, versus 78,095 lots Tuesday. One lot is equivalent to 25 tons.
A total of 13,938 lots of CPO were traded versus 12,268 lots Tuesday.
Closing BMD CPO futures prices in MYR/ton at 1000 GMT: Month Close Previous Change High Low Jul'10 2,452 2,450 Up 02 2,459 2,441 Aug'10 2,409 2,404 Up 05 2,419 2,397 Sep'10 2,384 2,377 Up 07 2,393 2,371 Oct'10 2,375 2,365 Up 10 2,380 2,359 -By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; email@example.com (Debiprasad Nayak in Mumbai contributed to this article)