Today Online (04/08/2020) - KUALA LUMPUR, Aug 4 - Malaysian palm oil futures extended gains for a fourth straight session on Tuesday, helped by signs of improving demand with stronger exports last month, but cheaper rival soyoil and crude capped gains.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 6 ringgit, or 0.26%, to 2,738 ringgit ($649.58) a tonne by 0232 GMT.

Palm rose to an intraday high of 3.2% in the previous session, after cargo surveyors reported that July exports rose 5.8%-6.8% on-month.

FUNDAMENTALS

* Palm oil imports into the European Union and Britain in the 2020/21 season stood at 389,792 tonnes, down 25% from the previous season, official EU data showed.

* Oil prices fell in early trade on concerns about fuel demand growth as a fresh wave of COVID-19 infections around the world sparks tighter lockdowns just as major producers ramp up output.

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

* Dalian's most-active soyoil contract fell 0.03%, while its palm oil contract gained 0.65%. Soyoil prices on the Chicago Board of Trade were down 0.54%.

* 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 test a support at 2,703 ringgit per tonne, following its failure to break a resistance at 2,756 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian shares were on track to open higher on Tuesday, after strong manufacturing data and gains in tech stocks boosted global equities and the U.S. dollar overnight.

DATA/EVENTS (GMT)

0100 Australia Trade Balance G&S June

0130 Australia Retail Sales MM June

0130 Australia Retail Trade Q2

0430 Australia RBA Cash Rate Aug

1400 US Factory Orders MM June

($1 = 4.2150 ringgit) REUTERS

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