Today Online (22/02/2021) - KUALA LUMPUR, Feb 22 - Malaysian palm oil futures rose nearly 3% on Monday, tracking strength in rival soyoil and Dalian oils after the U.S. Department of Agriculture projected only a slight increase in domestic soybean supplies for marketing year 2021-2022.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 96 ringgit, or 2.73%, to 3,618 ringgit ($895.77) a tonne during early trade, extending gains for a second day.

FUNDAMENTALS

* Exports of Malaysian palm oil products for Feb. 1 to 20 rose 10.3% to 697,794 tonnes from the same period in January, independent inspection company AmSpec Agri Malaysia said on Saturday.

* U.S. stockpiles of soybeans are expected to increase slightly by the end of the 2021/22 marketing year, the U.S. Department of Agriculture (USDA) said on Friday, indicating a large crop planted this spring would alleviate some supply concerns.

* Dalian's most-active soyoil contract rose 2.4%, while its palm oil contract gained 2.3%. Soyoil prices on the Chicago Board of Trade were up 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 retest a support at 3,465 ringgit, a break below which could cause a fall into 3,300-3,405 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian share markets inched up on Monday as expectations for faster economic growth and inflation globally battered bonds and boosted commodities, though rising real yields were making equity valuations look more stretched in comparison.

* Oil prices rose on Monday as the slow return of U.S. crude output that was cut by frigid conditions raised concerns about supply at a time demand has been coming back from the depths of the coronavirus pandemic.

DATA/EVENTS

0900 Germany Ifo Business Climate New Feb

0900 Germany Ifo Current Conditions New Feb

0900 Germany Ifo Expectations New Feb

($1 = 4.0390 ringgit)

REUTERS

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