Yahoo news (03/03/2020) - KUALA LUMPUR, March 3 (Reuters) - Malaysian palm oil futures firmed on Tuesday, supported by gains in rival soyoil, but falling exports and prospects of higher production amid the coronavirus outbreak capped gains.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange ticked up 20 ringgit, or 0.86%, to 2,340 ringgit ($556.48) during early trade, its second straight session of gains.

FUNDAMENTALS

* Dalian's most-active soyoil contract traded 0.57% higher, while its palm oil contract fell 0.04%. Soyoil prices on the Chicago Board of Trade were also trading up 0.45%.

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

* The Malaysian Southern Peninsular Palm Oil Millers Association has forecast February production to jump 39.75%, traders said on Monday.

* Malaysia's February palm oil exports fell between 11.84% and 12.9% from January, according to cargo surveyors on Saturday.

* February exports likely slumped as the coronavirus outbreak in China, the second largest palm buyer, disrupted businesses and kept citizens at home. Concerns that the virus, which has spread to South Korea, Italy, Iran and Japan, will dampen global demand of the edible oil have also hit market sentiment.

* Palm oil still targets 2,236 ringgit per tonne, as the support at 2,320 ringgit does not seem to hold, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Global shares and oil prices extended their rebound on Tuesday on mounting speculation policymakers around the world would move to ease the economic fallout from the spreading coronavirus.

DATA/EVENTS

0030 Australia Building Approvals Jan

0030 Australia Current Account Balance Q4

0030 Australia Net Exports Contribution Q4

0330 Australia RBA Cash Rate March

1000 EU HICP Flash YY Feb

1000 EU HICP-X F&E Flash Sale Feb

1000 EU Unemployment Rate Jan ($1 = 4.2050 ringgit)

(Reporting by Mei Mei Chu; Editing by Sriraj Kalluvila)

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