14.07.2021 (www.todayonline.com) - KUALA LUMPUR, July 14 - Malaysian palm oil futures eased on Wednesday after hitting a five-week peak, but concerns over slow output growth offered some support.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slid 6 ringgit, or 0.15%, to 3,971 ringgit ($945.93) a tonne during early trade.

Palm rose nearly 3% in the previous session to its highest since June 8.

Traders now eye cargo surveyors' July 1-15 export data, scheduled for Thursday.

FUNDAMENTALS

* European Union palm oil imports in the 2021/22 season fell to 80,608 tonnes versus 214,613 tonnes in 2020/21, European Commission data showed on Tuesday.

* Plantations in Malaysia are entering the seasonal higher production months, but analysts are anticipating a small uptick in July output as a labour shortage continues to hamper harvesting.

* The ringgit, palm's currency of trade, fell 0.17% against the dollar, making the commodity cheaper for holder's of foreign currency.

* The ringgit is poised for more losses as record coronavirus infections, movement restrictions, a cut to Malaysia's 2021 GDP forecast, political dysfunction and a broadly stronger U.S. dollar take a toll, a Reuters' market analyst said.

* Dalian's most-active soyoil contract gained 0.9%, while its palm oil contract rose 0.6%. Soyoil prices on the Chicago Board of Trade were down 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 break a resistance at 4,009 ringgit and rise to 4,105 ringgit, as the uptrend from 3,251 ringgit has extended, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Bond yields jumped and global share prices slipped after posting new highs on Tuesday as the biggest hike in U.S. inflation in 13 years rattled investors who fear rising interest rates could end a stock market rally that has doubled prices from 2020 lows.

DATA/EVENTS

0600 UK CPIT YY June

0630 India WPI Inflation YY June

1600 US Federal Reserve Chairman Jerome Powell

testifies on the Semiannual Monetary Policy

Report to the Congress before a virtual House

Financial Services Committee hearing

1800 US Federal Reserve issues the Beige Book of

economic condition ($1 = 4.1980 ringgit) REUTERS