VEGOILS-Palm falls for second day on higher output hopes, weaker Dalian

KUALA LUMPUR, May 11 (Reuters) - Malaysian palm oil futures fell on Thursday, extending losses to a second day, weighed by concerns over rising production in top producer Indonesia and tracking losses in rival Dalian oils.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange slid 78 ringgit, or 2.1%, to 3,631 ringgit ($818.71) a tonne during early trade.

FUNDAMENTALS

* Malaysia's end-April palm oil inventories slumped to their lowest in 11 months, after production and exports plunged more than anticipated, data from the 's palm oil board showed on Wednesday.

* The market is anticipating production to rise in top producers Malaysia and Indonesia in May, with a larger jump expected in larger grower Indonesia, traders and analysts said.

* India's oilseed growers have urged the government to raise the import tax on palm oil, the most widely used vegetable oil, to help support thousands of local farmers reeling from a crash in domestic rapeseed prices.

* Malaysian palm oil prices can rise above 4,000 ringgit per tonne in the second half of 2023 as the El Niño weather pattern develops, industry analyst Dorab Mistry said on Wednesday.

* Malaysian exports of palm oil products for May 1-10 rose 10.03% to from the previous month, cargo surveyor Intertek Testing Services said on Wednesday. Another cargo surveyor, Amspec Agri, said exports rose 1.7%.

* Dalian's most-active soyoil contract DBYcv1 fell 2.7%, while its palm oil contract DCPcv1 were down 3.3%. Soyoil prices on the Chicago Board of Trade BOcv1 also dropped 0.5%.

* Palm oil may break a support of 3,716 ringgit per tonne and fall towards the support of 3,634 ringgit, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* Asian shares rose on Thursday as investors cheered signs of easing inflationary pressure in the U.S. after data showed consumer prices in April rose at a slower-than-expected pace. MKTS/GLOB

DATA/EVENTS (GMT)

1100 UK BOE Bank Rate May

1230 US Initial Jobless Clm Weekly

1230 US PPI Machine Manuf'ing April

G7 Finance Ministers and Central Bank Governors' Meeting

in Niigata

($1 = 4.4350 ringgit)

(Reporting by Mei Mei Chu; Editing by Janane Venkatraman)

((Meifong.chu@thomsonreuters.com))

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.  * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the  page in the same chain, hit F12. To go back, hit F11. Vegetable oils                       OILS/ASIA1 Malaysian palm oil exports           SGSPALM1   CBOT soyoil futures                  0#BO:      CBOT soybean futures                 0#S:       Indian solvent                       SOLVENT01  Dalian Commodity Exchange            DC/MENU   Dalian soyoil futures                0#DBY:   Dalian refined palm oil futures      0#DCP:   Zhengzhou rapeseed oil               0#COI:   European edible oil prices/trades    OILS/E