Today Online (07/10/2020) - KUALA LUMPUR, Oct 7 - Malaysian palm oil futures firmed on Wednesday on lower production outlook amid wet weather and tightening coronavirus restrictions, but weaker crude and soyoil capped gains.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 10 ringgit, or 0.35%, to 2,828 ringgit ($680.30) a tonne by 0240 GMT.
Palm rose 3.56% in the previous session on lower production forecasts for the southern peninsular region of Malaysia, traders said on Tuesday.
* Malaysia's Prime Minister on Tuesday said targeted lockdowns would be imposed in areas with high rates of coronavirus infections, as the country grapples with a sharp spike in cases.
* The market is also concerned about a La Lina weather pattern hampering output as heavy rains lashed Malaysia's key palm producing state, Sabah.
* Oil prices slipped after U.S. President Donald Trump dashed hopes for a fourth stimulus package to boost the coronavirus-hit economy and on a larger-than-expected build-up in U.S. crude stocks.
* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
* Soyoil prices on the Chicago Board of Trade were down 0.63%. The Dalian Exchange was closed for a public holiday.
* 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 end its bounce in a range of 2,815 to 2,844 ringgit per tonne, and resume its fall, Reuters technical analyst Wang Tao said.
* Asian stocks were set to open lower on Wednesday, weighed by a weaker Wall Street finish after the U.S. President dashed hopes for a fourth stimulus package with a tweet.
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($1 = 4.1570 ringgit) REUTERS
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