Today Online (18/11/2020) - KUALA LUMPUR, Nov 18 - Malaysian palm oil futures inched up on Wednesday, underpinned by worries of tight supplies in November, although a slowdown in demand capped gains.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 16 ringgit, or 0.49%, to 3,295 ringgit ($803.17) a tonne during early trade.

Palm hit a one-week low in the previous session, after three straight sessions of losses.

FUNDAMENTALS

* FGV Holdings Bhd, the world's largest producer of crude palm oil, warned on Tuesday that its fourth-quarter output would be hit by uncertainties over the weather and COVID-19 curbs.

* Investors are now looking at Nov. 1-20 export data from cargo surveyors due Friday, after shipments during the first half of the month fell between 11% and 14% from the same period in October.

* Dalian's most-active soyoil contract rose 0.5%, while its palm oil contract gained 0.5%. Soyoil prices on the Chicago Board of Trade were up 0.2%.

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

MARKET NEWS

* Asian equities were set for a sluggish open on Wednesday, tracking a lower Wall Street session as concerns over rising coronavirus cases and fresh lockdowns dampened the euphoria from vaccine trial breakthroughs.

* Oil prices fell on Wednesday after a bigger-than-expected build in U.S. crude stockpiles stoked fears for weak fuel demand and a potential supply glut, but hopes that OPEC and its allies will postpone a planned January increase to oil output braked losses.

DATA/EVENTS

0030 Australia Wage Price Index QQ, YY Q3

0700 UK CPI YY Oct

1000 EU HICP Final MM, YY Oct

1330 US Housing Starts Number Oct

($1 = 4.1025 ringgit) REUTERS

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