VEGOILS-Palm flat as strong Dalian oils counter weak demand

KUALA LUMPUR, June 19 (Reuters) - Malaysian palm oil futures were largely flat on Thursday as support from stronger rival Dalian oils countered weak demand from key markets including India.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange fell 4 ringgit, or 0.1%, to 4,096 ringgit ($962.41) a metric ton by the midday break.

The market was trading sideways following an upward momentum seen in Chinese vegetable oil futures in Asian hours and the persistent bullish trend in ultra-low sulfur diesel (ULSD) futures, said Anilkumar Bagani, research head at Mumbai-based vegetable oil broker Sunvin Group.

But a lack of fresh buying support from destination markets and the weak buying demand from India capped the gains, Bagani added.

Dalian's most-active soyoil contract DBYcv1 rose 1.44%, while its palm oil contract DCPcv1 added 0.52%. The Chicago Board of Trade BOcv1 was closed for a public holiday.

Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.

Oil prices slipped as investors hesitated to take new positions after U.S. President Donald Trump gave mixed signals on the country's potential involvement in the ongoing Israel-Iran conflict. O/R

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Indian refiners cancelled orders for 65,000 metric tons of crude palm oil (CPO) scheduled for delivery from July to September following a sudden surge in benchmark Malaysian prices, four trade sources told Reuters.

The ringgit MYR=, palm's currency of trade, weakened 0.19% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

Palm oil remains neutral in the 4,072 ringgit to 4,113 ringgit per metric ton range, and an escape could suggest a direction, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.2560 ringgit)

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 next 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