Today Online (23/02/2021) - KUALA LUMPUR, Feb 23 - Malaysian palm oil futures rose for a third consecutive session on Tuesday, tracking a rally in crude oil and rival soyoil, but expectations for higher output capped gains.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 74 ringgit, or 2.1%, to 3,618 ringgit ($895.32) a tonne during early trade.

Industry groups estimate palm oil production in Malaysia during the first 20 days of February rose by 5% to 15%, while the pace of exports in the same period slowed, according to traders.

FUNDAMENTALS

* Exports of Malaysian palm oil products from Feb. 1 to 20 rose 28.2% to 734,622 tonnes compared with the same period in January, cargo surveyor Societe Generale de Surveillance said on Monday.

* European Union palm oil imports in the 2020/21 season had reached 3.62 million tonnes compared with 3.65 million a year ago, data published by the European Commission showed on Monday.

* Oil prices jumped by more than $1, as U.S. output was slow to return after a deep freeze in Texas shut in crude production last week, making palm a more attractive option for biodiesel feedstock.

* Dalian's most-active soyoil contract rose 0.8%, while its palm oil contract gained 1.4%. Soyoil prices on the Chicago Board of Trade were up 0.1%.

* 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 retest a support at 3,465 ringgit, a break below which could cause a fall into 3,300 ringgit to 3,405 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Asian stocks dipped on Tuesday as rising U.S. Treasury yields and inflation prospects led to a further rotation out of the big tech stocks responsible for a major Wall Street rally during the pandemic.

DATA/EVENTS

0700 UK Claimant Count Unem Chng Jan

0700 UK ILO Unemployment Rate Dec

1000 Euro Zone HICP Final MM/YY Jan

0700 Federal Reserve Chairman Jerome Powell testifies on the Semiannual Monetary Report to Congress before virtual hearing of the Senate Banking Committee

($1 = 4.0385 ringgit) ($1 = 4.0410 ringgit) REUTERS

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