VEGOILS-Palm oil set for 7% weekly fall on demand hit due to virus, lower exports

KUALA LUMPUR, Feb 14 (Reuters) - Malaysian palm oil futures fell to a near two-week low on Friday, as concerns over lower demand from China due to a spike in coronavirus infections in the world's second-largest palm oil buyer weighed down the market.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange slid 19 ringgit, or 0.72%, to 2,606 ringgit ($629.32) by 0241 GMT. The contract touched its lowest since Feb. 3 during the session.

Palm oil is down 7.4% so far this week, erasing most of the 8% gains it made last week.


FUNDAMENTALS

* China's National Health Commission reported 5,090 new virus cases and 121 new deaths in the mainland as of Feb. 13. Both the death toll and infections have jumped sharply this week after Hubei province changed its method to diagnose patients.

* Falling exports to Malaysia's largest destination markets India and China have also fuelled selling pressure this week, as data from cargo surveyors showed Feb. 1-10 exports falling 20%-29.4%.

* India's vegoil imports in January fell 6% to 1.2 million tonnes from a year ago, the Solvent Extractors' Association of India said on Thursday, further stoking demand concerns.

* Dalian's most-active soyoil contract traded 1.3% lower, while its palm oil contract fell 1.6%. Soyoil prices on the Chicago Board of Trade were also trading down 0.4%.

* 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 revisit its Jan. 28 low of 2,575 ringgit per tonne, Reuters technical analyst Wang Tao said.


MARKET NEWS

* Global shares eased on Friday, as investors were spooked by a sharp rise in the number of coronavirus cases in China this week while oil prices extended gains on hopes of more production cuts.


DATA/EVENTS

0630 India WPI Inflation YY Jan

0700 Germany GDP Flash QQ SA Q4

0700 Germany GDP Flash YY NSA Q4

1100 EU GDP Flash Estimate QQ, YY Q4

1330 U.S. Retail Sales MM Jan

1415 U.S. Industrial Production MM Jan

1500 U.S. U Mich Sentiment Prelim Feb


($1 = 4.1410 ringgit) (Reporting by Mei Mei Chu; editing by Uttaresh.V)