VEGOILS-Palm drops as rival oils drag; March exports, output data eyed

JAKARTA, March 31 (Reuters) – Malaysian palm oil futures opened lower on Wednesday, tracking losses in rival oils, with traders awaiting key soy planting reports from the United States.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 1.76% to 3,509 ringgit ($844.93) per tonne during early trade, extending from a 4.6% drop a day earlier.

The contract is set to post a monthly decline in March.

On investors’ radar are Malaysia’s monthly exports and production data due to be released this week.

FUNDAMENTALS

* Dalian’s most-active soyoil contract DBYcv1 slumped 3.75% and its palm oil contract DCPcv1 lost 2.57%. Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.1%.

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

* U.S. soy and corn futures fell overnight as traders liquidated positions and booked profits a day ahead of a pair of key crop reports from the U.S. Department of Agriculture, analysts said. GRA/

* The U.S. Department of Agriculture is scheduled to release its annual U.S. planting intentions and quarterly grain stocks reports on March 31. The reports have a history of rattling the markets. Leading analysts said last week major vegetable oil prices, such as palm oil and soybean oil, have likely already peaked at multi-year highs in 2021 and while prices are expected to fall, they will not likely collapse. NEWS

* Asian stocks were on track for their first monthly loss since last October, although markets were up on Wednesday and the U.S. dollar stood tall as investors focused on growing signs of a sure-footed global economic recovery. MKTS/GLOB

* Oil prices gained, paring overnight losses a day ahead of a meeting of OPEC and its allies, with investors betting the producers will largely agree to extend their supply curbs into May. O/R

DATA/EVENTS (GMT) 0030 Australia Building Approvals

Feb 0100 China

NBS Manufacturing PMI

March 0600 UK

GDP QQ, YY

Q4 0600 UK

Nationwide house price MM, YY March 0755 Germany

Unemployment Chg, Rate SA

March 0900 EU

HICP Flash YY

March 0900 EU

HICP-X F&E Flash YY

March ($1 = 4.1530 ringgit)