Reuters (22/06/2020) - KUALA LUMPUR, June 22 (Reuters) - Malaysian palm oil futures fell on Monday due to concerns that a resurgence in cases of the novel coronavirus would hit demand, while uncertainty over production further dented sentiment.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slid 26 ringgit, or 1.05%, to 2,446 ringgit ($572.57) a tonne during early trade.

The contract had hit a three-month closing high on Friday and recorded a sixth straight weekly gain.

Traders were also cautious ahead of the June 1-20 production data by the Southern Peninsular Palm Oil Millers Association.

FUNDAMENTALS

* For the first time ever, world consumption of palm oil will decline this season due to the impact of the COVID-19 pandemic, leading analyst Thomas Mielke said in an online seminar on Monday.

* Malaysian palm oil exports in June 1-20 rose between 55.3% and 57%, according to cargo surveyors.

* Dalian’s most-active soyoil contract rose 0.56% and its palm oil contract gained 1.26%. Soyoil prices on the Chicago Board of Trade were down 1.46%.

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

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* Palm oil may break a resistance at 2,479 ringgit per tonne, and rise into a range of 2,536-2,592 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* U.S. stock futures erased losses and Asian stocks held flat on Monday, trying to shake off worries that rising coronavirus cases in the United States could scupper a quick economic rebound from the massive downturn triggered by the pandemic.

DATA/EVENTS (GMT)

1400 US Existing Home Sales May

1400 EU Consumer Confidence Flash June

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1415 Germany German Finance Minister Olaf Scholz and French

Finance Minister Bruno Le Maire give a joint

statement on current European affairs.

$1 = 4.2720 ringgit Reporting by Mei Mei Chu; editing by Uttaresh.V

Read more at https://uk.reuters.com/article/asia-vegoils/vegoils-palm-oil-falls-as-rising-virus-cases-raise-demand-fears-idUKL4N2DZ0SG