VEGOILS-Palm oil set for second weekly gain as supply concerns dominate

KUALA LUMPUR, March 27 (Reuters) - Malaysian palm oil futures were set for a second weekly gain and changed course to trade higher on Friday as supply concerns stemming from coronavirus-driven curbs on some plantation activity offset pressure from a stronger ringgit.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 27 ringgit, or 1.15%, to 2,385 ringgit ($561.18) per tonne by 0322 GMT. The contract was trading 0.4% lower earlier.

Palm is set to gain 1.2% this week as a one-month virtual lockdown in Malaysia, the world's second-largest palm producer, raised supply concerns.

Malaysia on Wednesday extended its restricted movement order to mid-April, a day after suspending some palm operations as virus cases surged.


FUNDAMENTALS

* Malaysia's palm oil exports for March 1-25 fell between 11.7% and 13.6% on weak demand amid the virus outbreak, data from cargo surveyors showed on Wednesday.

* The ringgit, palm's currency of trade, was up 1.78% against the dollar, making the edible oil more expensive for holders of foreign currency.

* Soyoil prices on the Chicago Board of Trade gained 0.49%. Dalian's most-active soyoil contract slipped 0.9%, while its palm oil contract was up 0.58%.

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


MARKET NEWS

* Asian stocks rose as investors wagered policymakers will roll out additional stimulus measures to combat the coronavirus pandemic after U.S. unemployment filings surged to a record.

* Oil prices strengthened after world leaders promised a massive injection of funds to limit the economic fallout from the coronavirus pandemic, despite fears the outbreak will destroy demand for oil.


DATA/EVENTS

1230 U.S. Consumption, adjusted MM Feb

1400 U.S. U Mich consumer sentiment final March

($1 = 4.2500 ringgit) (Reporting by Mei Mei Chu; Editing by Devika Syamnath)