VEGOILS-Palm oil firms, slow rise in May exports and lockdown hurt demand outlook
31.05.2021 (www.nasdaq.com) - KUALA LUMPUR, June 1 (Reuters) - Malaysian palm oil futures inched up on Tuesday, underpinned by concerns over supply of rival edible oils, but a fresh coronavirus lockdown in Malaysia and a slow rise in May exports hurt demand outlook.
The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange gained 11 ringgit, or 0.28%, to 3,930 ringgit ($954.58) a tonne during early trade.
FUNDAMENTALS
* Malaysia on Monday announced an additional 40 billion ringgit ($9.70 billion) stimulus package, ahead of the imposition of stricter lockdown measures this week to curb the rapid spread of COVID-19.
* The world's second largest producer starts a two-week nationwide lockdown on Tuesday. Essential manufacturing and service sector, including the palm oil supply chain, are allowed to operate but the closures of most businesses may affect local consumption of the edible oil.
* Exports of Malaysian palm oil products for May rose 1.5% from April, cargo surveyor Intertek Testing Services said on Monday.
* Dalian's most-active soyoil contract DBYcv1 gained 1.1%, while its palm oil contract DCPcv1 rose 0.4%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.8%.
* 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 break a support at 3,888 ringgit per tonne and fall towards the next support at 3,738 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* World equities were firmly on track to post a fourth straight month of gains on Monday, while the dollar struggled broadly ahead of European and U.S. data this week that will provide a clearer picture on the global economy's recovery path. MKTS/GLOB
DATA/EVENTS (GMT)
0600 UK Nationwide House Price MM, YY May
0750 France Markit Mfg PMI May
0755 Germany Markit/BME Mfg PMI May
0755 Germany Unemployment Chng, Rate SA May
0800 EU Markit Mfg Final PMI May
0830 UK Markit/CIPS Mfg PMI Final May
0900 EU HICP Flash YY May
0900 EU HICP-X F&E Flash YY May
0900 EU Unemployment Rate April
1345 US Markit Mfg PMI Final May
1400 US ISM Manufacturing PMI May
($1 = 4.1170 ringgit)
(Reporting by Mei Mei Chu; Editing by Rashmi Aich)