06.08.2020 (www.todayonline.com) - KUALA LUMPUR, Aug 6 - Malaysian palm oil futures firmed on Thursday, lifted by expectations of a plunge in July stockpiles and output, although gains were capped by worries over weak export demand in August.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 19 ringgit, or 0.70%, to 2,736 ringgit ($653.14) a tonne in early trade, after falling 1.8% in the previous session.

Malaysia's palm oil inventories at end-July likely plunged 11.94% from June to three-year lows, as exports rise and production slumped due to a worsening labour shortage, a Reuters survey showed on Wednesday.

But traders said market talk of Malaysia's palm oil exports during August 1-5 falling 20% from the previous month have stoked fears of a slump in demand.

FUNDAMENTALS

* Exports of Malaysian palm oil products for July rose 10.7% from June, cargo surveyor Societe Generale de Surveillance said on Wednesday.

* The ringgit, palm's currency of trade, strengthened 0.05% against the dollar, making the edible oil more expensive for holders of foreign currency.

* Dalian's most-active soyoil contract fell 0.76%, while its palm oil contract slipped 0.54%. Soyoil prices on the Chicago Board of Trade were down 0.29%.

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

MARKET NEWS

* The dollar languished and just about everything else rose on Thursday, as markets took patchy U.S. economic data as a harbinger of ever more stimulus and brinkmanship on Capitol Hill as a sign that a deal on a new U.S. stimulus package is close.

DATA/EVENTS (GMT)

0600 Germany Industrial Orders MM June

0600 UK BOE Bank Rate July

0600 UK GB BOE QE Corp July REUTERS

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