(Corrects day in lede graf to Tuesday)
* Palm oil falls for second straight day
* Lockdown worries in Europe drag global markets
* Malaysian exports likely steady until next month -analyst
KUALA LUMPUR, Sept 22 (Reuters) - Malaysian palm oil futures
dropped more than 2% on Tuesday, dragged lower by weak Dalian
prices and global equities, as fears over new coronavirus
restrictions in Europe hit sentiment.
The benchmark palm oil contract for December
delivery on the Bursa Malaysia Derivatives Exchange slid 65
ringgit, or 2.16%, to 2,942 ringgit ($711.66) a tonne by the
midday break. It had snapped a four-session rally to fall 2.4%
"Prices came down on global weakness in equity markets and
possible lockdown in some European states," a Kuala Lumpur-based
trader said. "Expect further weakness if global rout continues."
Long liquidation is heavy as prices jumped by 200-250
ringgit ($48.38) in the last two weeks, the trader said.
Asian shares extended losses to a second day, as new
pandemic measures in the UK and some other European countries
spurred fears about fresh lockdowns that could threaten a
nascent economic recovery and further pressure equity
However, hopes of strong demand ahead of key festivals in
China and India capped palm oil's losses.
Shipments from Malaysia, which jumped this month, are
expected to be steady until October, with arrivals to top buyer
India expected to improve ahead of the Diwali festival there,
according to Refinitiv Commodities Research.
Palm oil imports into the European Union and Britain in the
2020/21 season that started on July 1 totalled 1.41 million
tonnes by Sept. 20, up from 1.32 million tonnes in the previous
season, official EU data showed on Monday.
Dalian's most-active soyoil contract fell 1.62%,
while its palm oil contract dropped 2.42%. Soyoil
prices on the Chicago Board of Trade gained 0.06%.
Palm oil is affected by price movements in related oils as
they compete for a share in the global vegetable oils market.
($1 = 4.1340 ringgit)
(Reporting by Mei Mei Chu; Editing by Devika Syamnath)