07.12.2020 (www.todayonline.com) - KUALA LUMPUR, Dec 7 - Malaysian palm oil futures rose on Monday, underpinned by forecasts for a lower November palm stockpile, although gains were capped by weaker soyoil prices.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 6 ringgit, or 0.17%, to 3,443 ringgit ($846.15) a tonne during early trade.

The contract rose 3% last week and is trading $8 above soyoil prices on the Chicago Board of Trade, which were down 1%.

Malaysia's palm oil inventories in November likely dropped 2% from the previous month to hit a near three-and-a-half-year low, as production hit an eight-month low and exports shrank, a Reuters survey showed on Friday.

Data on November supply and demand from the Malaysian Palm Oil Board is due on Thursday.

FUNDAMENTALS

* Dalian's most-active soyoil contract gained 1%, while its palm oil contract rose 0.5%.* 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 rise into a range of 3,474-3,504 ringgit per tonne, as it has cleared a resistance at 3,426 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian shares retreated from a record peak on Monday after a Reuters report the United States was preparing to impose sanctions on some Chinese officials highlighted geopolitical tensions, while oil prices fell on surging virus cases.

DATA/EVENTS

0700 Germany Industrial Output MM Oct

0745 France Reserve Assets Total Nov

0830 UK Halifax House Prices MM Nov

n/a China Exports, Imports YY Nov

n/a China Trade Balance Nov ($1 = 4.0700 ringgit)

($1 = 4.0690 ringgit) REUTERS

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