31.05.2021 (www.todayonline.com) - KUALA LUMPUR, May 31 - Malaysian palm oil futures fell 2% on Monday, as the world's second largest producer of the edible oil prepared for a two-week nationwide lockdown due to a spike in new coronavirus infections.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid 81 ringgit, or 2.02%, to 3,929 ringgit ($949.72) a tonne during early trade.

The market is also awaiting May export data due later in the day.

FUNDAMENTALS

* Malaysia will commence a two-week nationwide lockdown starting Tuesday that will see the closure of non-essential businesses and services to control the pandemic. Palm oil plantations will be allowed to operate while manufacturing sector are allowed to operate with reduced capacity.

* Dalian's most-active soyoil contract fell 0.5%, while its palm oil contract declined 0.6%. The Chicago Board of Trade was closed for a public holiday.

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

* China has approved trading of crude oil and palm oil options on the Shanghai International Energy Exchange and the Dalian Commodity Exchange respectively, its securities regulator said on Friday, adding to a range of products open to foreign participants for trading.

* Signals are mixed for palm oil, as it is consolidating around a resistance at 4,010 ringgit per tonne, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian shares edged higher on Monday, looking to extend their recent rally to a third week should U.S. jobs figures show the expected revival in hiring in May and keep the global recovery on track.

DATA/EVENTS (GMT, May)

0100 China NBS Manufacturing PMI

1200 Germany CPI Prelim YY

1200 Germany HICP Prelim YY

($1 = 4.1370 ringgit) REUTERS

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