20.04.2020 (Yahoo Singapore News) - KUALA LUMPUR, April 20 (Reuters) - Malaysian palm oil futures edged up on Monday due to expectations of an uptick in April exports, although gains were capped on weaker crude and rival oil prices.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 7 ringgit, or 0.31%, to 2,242 ringgit ($511.06) per tonne by 0251 GMT. Palm shed 3.3% last week.

The market is expecting Malaysian palm oil exports during April 1-20 to increase by 6%-8%, traders said. The cargo surveyors data will be released during the midday break on Monday.

FUNDAMENTALS

* Crude oil futures fell on Monday, with U.S. futures touching levels not seen since 1999, extending weakness on the back of sliding demand and concerns that U.S. storage facilities will soon fill to the brim amid the coronavirus pandemic.

* Weaker crude oil make palm a less attractive option for biodiesel feedstock.

* Dalian's most-active soyoil contract fell 0.04%, while its palm oil contract gained 1.04%. Soyoil prices on the Chicago Board of Trade were down 0.22%.

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

* Palm oil may retest a support at 2,198 ringgit per tonne, a break below could cause a fall to 2,165 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Caution gripped Asian share markets on expectations a busy week of corporate earnings reports and economic data will drive home the damage done by the global virus lockdown, while a glut of supply sent U.S. crude spiralling to 20-year lows.

DATA/EVENTS

0600 UK Claimant Count Unemployment Change March

0600 UK ILO Unemployment Rate Feb

0900 Germany ZEW Economic Sentiment April

0900 Germany ZEW Current Conditions April

1400 US Existing Home Sales March ($1 = 4.3870 ringgit)

(Reporting by Mei Mei Chu; editing by Uttaresh.V)

https://sg.news.yahoo.com/vegoils-palm-rises-ahead-exports-033312929.html