02.06.2021 (www.todayonline.com) - KUALA LUMPUR, June 2 - Malaysian palm oil futures rose on Tuesday after two straight sessions of declines, as dry weather in the United States and Canada crop belts, and reduced crop expectations in South America stoked worries of global edible oil supply.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 74 ringgit, or 1.9%, to 3,965 ringgit ($961.33) a tonne during early trade.

The market was supported by expectations of lower domestic consumption due to a two-week lockdown in Malaysia, with sluggish exports in May further hurting demand prospects.

FUNDAMENTALS

* Exports of Malaysian palm oil products for May fell 1.2% to 1,395,791 tonnes from April, cargo surveyor Societe Generale de Surveillance said on Tuesday.

* The U.S. Department of Agriculture said U.S. farmers planted 84% of their intended soybean acreage, below the average estimate in the Reuters poll of 87%.

* Dalian's most-active soyoil contract rose 1.7%, while its palm oil contract gained 2%. 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.

* A bearish target of 3,738 ringgit per tonne has been aborted for palm oil, as it is stabilizing around a support at 3,888 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian shares edged up to near three-month highs on Wednesday and global equities held steady near a record as data showing higher U.S. manufacturing activity in May cheered investors looking for signs of a continued rebound in the world's largest economy.

DATA/EVENTS

0130 Australia Real GDP QQ, YY SA Q1

1200 Brazil Industrial Output MM, YY April

1800 US Federal Reserve issues the Beige Book of economic condition

($1 = 4.1245 ringgit) REUTERS

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