15.06.2020 (TODAYonline) - KUALA LUMPUR, June 15 - Malaysian palm oil futures fell on Monday, weighed by weaker crude prices, although hopes of a dramatic rise in June 1-15 exports limited losses.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slipped 7 ringgit, or 0.25%, to 2,363 ringgit ($553.40) a tonne during 0252 GMT.

Palm oil futures gained 0.98% last week, logging a fifth straight weekly gain, underpinned by expectations of robust demand from top buyers India and China.

FUNDAMENTALS

* The market is expecting June 1-15 exports to jump over 50% from the month before, traders said. Cargo surveyors are expected to release the data today.

* Oil prices fell, with U.S. oil dropping more than 2%, as a spike in new coronavirus cases in the United States raised concerns over a second wave of the virus which would weigh on the pace of fuel demand recovery.

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

* Dalian's most-active soyoil contract gained 0.71%, while its palm oil contract rose 1.27%. Soyoil prices on the Chicago Board of Trade fell 0.07%.

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

* Palm oil looks neutral in a range of 2,342-2,394 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian markets started the week on the backfoot on Monday while oil prices slipped as fears of a second wave of coronavirus infections in China sent investors scurrying for safe-havens.

DATA/EVENTS (GMT) May

0200 China Urban Investment (YTD) YY

0200 China Industrial Output YY

0200 China Retail Sales YY

0630 India WPI Inflation YY

1000 EU Reserve Assets Total

($1 = 4.2700 ringgit) REUTERS