Nasdaq (22/07/2021) - KUALA LUMPUR, July 23 (Reuters) - Malaysian palm oil futures rose on Friday and were set to gain for a fifth consecutive week, their longest weekly winning streak in more than a year, underpinned by concerns over declining production as a labour shortage hampers output.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 42 ringgit, or 1.02%, to 4,163 ringgit ($985.56) a tonne during early trade.

Palm has risen 0.6% so far this week and is on course for its longest weekly rise since mid-June 2020.

FUNDAMENTALS

* A labour shortage and coronavirus restrictions are clouding outlook for palm oil production in Malaysia, dashing hopes of a large rise in output in the seasonal peak production months during the third quarter of the year.

* Dalian's most-active soyoil contract DBYcv1 fell 0.2%, while its palm oil contract DCPcv1 gained 0.9%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.5%.

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

* The ringgit MYR=, palm's currency of change fell 0.01% against the dollar, making the commodity cheaper for holders of foreign currency.

* Palm oil may fall to 4,009 ringgit per tonne, as it failed a few times to break a resistance at 4,164 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* U.S. stock markets closed higher after a mixed trading session as investors digested negative economic data reflecting the country's struggle to move past the COVID-19 pandemic, while yields on safe-haven assets such as U.S. Treasuries slipped. MKTS/GLOB

DATA/EVENTS

0600 UK Retail Sales MM, YY June

0600 UK Retail Sales Ex-Fuel MM June

0715 France Markit Mfg, Serv, Comp Flash PMIs July

0730 Germany Markit Mfg, Serv, Comp Flash PMIs July

0800 EU Markit Mfg, Serv, Comp Flash PMIs July

0830 UK Flash Com, Mfg, Serv PMIs July

1330 US Markit Mfg, Serv, Comp Flash PMIs July

($1 = 4.2240 ringgit)

Read more at https://www.nasdaq.com/articles/vegoils-palm-oil-set-to-climb-for-fifth-week-on-production-concerns-2021-07-23