Today Online (08/06/2021) - KUALA LUMPUR,June 8 - Malaysian palm oil futures slipped on Tuesday, extending losses for a second session, hurt by weaker crude oil prices and expectations of rising May inventories.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid 84 ringgit, or 2.03%, to 4,045 ringgit ($982.27) a tonne during early trade.

Traders are now waiting for the Malaysian Palm Oil Board to release its May supply and demand data, due on Thursday.

Malaysia's palm oil stockpiles at the end of May likely jumped 6.3% on-month to their highest in eight months, as production rose amid sluggish exports, a Reuters survey showed on Friday.

FUNDAMENTALS

* Oil prices lost more ground as concerns about the fragile state of the global recovery in demand for crude and fuels were heightened by data showing China's oil imports fell in May.

* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

* European Union palm oil imports in the 2020/21 season were at 4.89 million tonnes versus 5.42 million a year ago, data published by the European Commission showed on Monday.

* Soyoil prices on the Chicago Board of Trade were up 0.2%. Dalian's most-active soyoil contract fell 1.6%, while its palm oil contract declined 2%.

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

* Palm oil will trend up for a second consecutive week, towards resistance levels at 4,260-4,280 ringgit a tonne this week, with support levels at 3,870-3,890 ringgit a tonne, Refinitiv Agriculture Research analysts said in a note on Monday.

MARKET NEWS

* A gauge of global equity markets closed at a record high on Monday as technology shares took in stride a deal by the world's richest nations on a corporate tax aimed at U.S. tech heavyweights, and oil prices jumped to a two-year high.

DATA/EVENTS

0600 Germany Industrial Output MM April

0900 Germany ZEW Economic Sentiment June

0900 Germany ZEW Current Conditions June

0900 EU GDP Revised QQ, YY Q1 REUTERS

Read more at https://www.todayonline.com/world/vegoils-palm-oil-falls-2-weaker-crude-rising-inventories-forecast