08.04.2020 (TODAYonline) - KUALA LUMPUR, April 8 - Malaysian palm oil futures firmed up on Monday, tracking gains in crude oil futures and supported by supply concerns as the world's No.2 producer is expected to discuss a shutdown order on some plantations to curb the spread of the coronavirus.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 22 ringgit, or 0.95%, to 2,337 ringgit ($537.86) per tonne during 0238 GMT, its third daily gain.

Palm oil gained 2.9% in the previous session on fears that Malaysia's biggest palm producing state, Sabah, would extend its closure on some plantations as state chief minister Shafie Apdal is expected to discuss the closure at a cabinet meeting later on Wednesday.

FUNDAMENTALS

* Malaysia risks losing 500,000 tonnes of crop from a 14-day blanket closure of plantations and mills in six districts aimed at stemming the spread of the coronavirus, the Malaysian Palm Oil Association warned on Tuesday.

* Oil climbed on Wednesday, reversing most of the prior session's losses, as investors pinned hopes on a Thursday meeting where major producers will discuss output cuts to shore up prices. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

* Dalian's most-active soyoil contract gained 0.73%, while its palm oil contract jumped 1.88%. Soyoil prices on the Chicago Board of Trade fell 0.47%.

* 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 break a resistance at 2,327 ringgit per tonne, after a shallow pullback towards a falling trendline, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian stocks stepped back on Wednesday after two sessions of sharp gains as investors turned wary on getting too optimistic about the coronavirus, while death tolls were still mounting across the globe.

DATA/EVENTS

1800 US Federal Open Market Committee will release minutes from March 15 meeting

($1 = 4.3450 ringgit) REUTERS

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