21.05.2021 (www.todayonline.com) - KUALA LUMPUR, May 21 - Malaysian palm oil futures were on course for a 10% weekly drop, their biggest in two months, as they fell for a third straight session on Friday, tracking a sell-off in rival edible oils.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid 40 ringgit, or 0.97%, to 4,072 ringgit ($982.27) a tonne in early trade, its lowest since May 5, also hit by demand and lockdown concerns.

FUNDAMENTALS

* Malaysia's palm exports during May 1-20 rose 16% month-on-month, according to data from Amspec Agri, but traders are concerned that the pace of exports would decline due to reduced purchases by key buyers.

* Dalian's most-active soyoil contract fell 2.3%, while its palm oil contract was down 2.9%. Soyoil prices on the Chicago Board of Trade slid 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 fall more into a range of 3,955-4,021 ringgit per tonne, as suggested by the current strong momentum, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian stocks rose, setting the region up for a weekly gain, as investors tempered fears about hot inflation and the prospects of an early tapering of stimulus by the Federal Reserve.

DATA/EVENTS

0600 UK Retail Sales MM, YY April

0600 UK Retail Sales Ex-Fuel MM April

0715 France Markit Mfg, Serv, Comp Flash PMIs May

0730 Germany Markit Mfg, Serv, Comp Flash PMIs May

0800 EU Markit Mfg, Serv, Comp Flash PMIs May

0830 UK Flash Comp, Mfg, Serv PMIs May

1345 US Markit Mfg, Serv, Comp Flash PMIs May

1400 US Existing Home Sales April

1400 EU Consumer Confid. Flash May

0700 Finance ministers from the 19 countries sharing the euro meet in person in Lisbon to discuss macroeconomic and fiscal developments in the euro area. ($1 = 4.1455 ringgit) REUTERS