Today Online (16/08/2021) - JAKARTA, Aug 16 - Malaysian palm oil futures extended gains on Monday after closing at a record high in the previous session, as concerns of tightening supply underpinned prices.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange gained 64 ringgit, or 1.46%, to 4,462 ringgit ($1,052.61) a tonne during early trade.

Palm gained 5.5% last week after data from the Malaysian Palm Oil Board (MPOB) showed stockpiles dropped to a four-month low at July-end.

Palm oil may retest a resistance at 4,587 ringgit per tonne, a break above which could lead to a gain to 4,698 ringgit, Reuters technical analyst Wang Tao said.

FUNDAMENTALS

* Dalian's most-active soyoil contract and its palm oil contract climbed 1.74% and 0.13% respectively. Soyoil prices on the Chicago Board of Trade rose 0.27%.

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

MARKET NEWS

* Oil prices fell more than 1% on Monday, dropping for a third session, as government-imposed restrictions on mobility to counter the spread of the Delta variant raised worries about a recovery in fuel demand.

* Asian share markets slipped after a raft of Chinese data showed a surprisingly sharp slowdown in the engine of global growth, just as much of the world races to stem the spread of the Delta variant of COVID-19 with vaccinations.

* Chicago wheat futures rose for a third day on Monday, trading near last session's 8-1/2-year top as tightening supplies in key exporting countries buoyed the market.

DATA/EVENTS (GMT)

2350 Japan GDP Q2

0200 China Industrial Output July

0630 India WPI Inflation YY July

1000 EU Reserve Assets July

($1 = 4.2390 ringgit) REUTERS

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