Today Online (22/12/2020) - SINGAPORE, Dec 22 - Malaysian palm oil futures jumped 1.5% on Tuesday, tracking gains in rival oils on the Dalian Commodity Exchange and Chicago Board of Trade (CBOT).

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 50 ringgit to 3,456 ringgit ($853.33) in early trade. The contract had ended 1.1% lower on Monday.

"External markets are improving," a Kuala Lumpur-based trader told Reuters.

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

Soyoil on the CBOT rallied overnight to reach six-and-a-half-year highs, as prolonged worker strikes and dry weather in Argentina squeezed global supply prospects.

It was last up 0.9%.

Meanwhile, soy and palm oils on the Dalian Commodity Exchange rose 0.5% and 1.2% respectively.

Palm oil may test a support zone of 3,348-3,381 ringgit per tonne, a break below which could cause a fall to 3,300 ringgit, Reuters analyst Wang Tao said.

FUNDAMENTALS

* China is expected to import more than 100 million tonnes of soybeans in 2020, a record high, said an executive with leading state-owned grains trader COFCO.

* Oil prices fell on Tuesday, extending sharp losses overnight, as the rapid spread of a new strain of the novel coronavirus in the United Kingdom prompted several countries to close their borders to British travellers and freight.

MARKETS

* Asian shares slipped, extending a pullback from multi-year highs hit last week on renewed fears a highly infectious new strain of COVID-19 that shut down much of Britain could lead to a slower global economic recovery.

DATA/EVENTS AHEAD (GMT) 1330 US GDP Final Q3 1500 US Existing Home Sales Nov 2350 Bank of Japan releases minutes of monetary policy meeting held on Oct. 28 and 29 REUTERS

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