Today (20/03/2020) - KUALA LUMPUR, March 20 - Malaysian palm oil futures climbed 2% on Friday, buoyed by gains in rival edible oils and crude oil, but the contract was poised for a second straight weekly drop amid demand worries due to the coronavirus outbreak.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 46 ringgit, or 2.08%, at 2,261 ringgit per tonne ($514.80) in early trade.
Palm was down 1% for the week as countries around the world imposed lockdown measures, shut borders, and restrict movements to contain the spread of the coronavirus.
* Malaysia, the world's second-largest palm producer, will allow palm plantations to operate and vessels to enter the country during its two-week restricted movement to contain the virus, ensuring steady global supply of the vegetable oil.
* U.S crude oil prices edged higher, extending gains after a 24% jump the previous day, buoyed by hints from U.S. President Donald Trump he may intervene in the price war between Saudi Arabia and Russia at an "appropriate time." Strong crude oil futures make palm a more attractive option for biodiesel feedstock.
* Dalian's most-active soyoil contract gained 1.74%, while its palm oil contract rose 1.41%. Soyoil prices on the Chicago Board of Trade were up 1.77%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil is poised to break a support at 2,184 ringgit per tonne and fall to 2,100 ringgit, Reuters technical analyst Wang Tao said.
* Asian shares sought a reprieve as Wall Street eked out gains, bonds rallied and oil boasted its biggest bounce on record, though a panicked rush into U.S. dollars suggested the crisis was far from done.
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($1 = 4.3920 ringgit) REUTERS
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