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VEGOILS-Palm jumps over 1% as output in Malaysia drops

JAKARTA, Feb 3 (Reuters) - Malaysian palm oil futures rose more than 1% on Monday after two straight sessions of losses, as data from an industry body showed a decline in output in the world's second-biggest producer.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose 1.1% to 2,631 ringgit per tonne in early trade.

The contract fell nearly 9% last week on fears that the coronavirus epidemic would lower demand from China, the world's second-biggest buyer of the vegetable oil.

The lower production in peninsular Malaysia is supporting the market, two Kuala Lumpur-based traders said.

Production of palm oil fell 4.3% in January compared with the month earlier, Peninsula Palm Oil Millers' Association's (SPPOMA) data showed.

Opening after the Lunar New Year holidays, soyoil and palm oil on China's Dalian Commodity Exchange fell 7% each as the death toll from the virus rose to 361.

Palm oil is generally affected by price movements in related oils as its competes for a share in the global vegetable oil market.

Elsewhere, soybean on the Chicago Board of Trade rose 1.2%.

Palm oil may retest a support at 2,592 ringgit per tonne, a break below which could cause a fall into a range of 2,435 ringgit to 2,513 ringgit, Reuters analyst Wang Tao said. [TECH/C}


FUNDAMENTALS

* U.S. soybeans edged up on Monday after hitting a two-month low earlier in the session as fears that an outbreak of coronavirus will reduce demand from top consumer China.

* Oil prices extended declines on Monday, dragged down by worries about lower demand in the world's largest oil importer China following the coronavirus breakout.

MARKET NEWS

* Asian shares stumbled on Monday, oil skidded and commodities on Chinese exchanges plunged on their first trading day after a long break on fears the coronavirus epidemic will hit demand in the world's second-largest economy.

* China's yuan and its proxy, the Australian dollar, were poised for vulnerable day of trade on Monday in favour of safe-harbour currencies, in reaction to authorities' drastic steps worldwide to curb the spread of a new virus which originated in China.

DATA/EVENTS (GMT) 0500 India IHS Markit Mfg PMI 0850 France Markit Mfg PMI 0855 Germany Markit/BME Mfg PMI 0900 EU Markit Mfg Final PMI 0930 UK Markit/CIPS Mfg PMI Final 1400 US ISM Manufacturing PMI 1445 US Markit Mfg PMI Final (Reporting by Fathin Ungku; Editing by Aditya Soni)