VEGOILS-Palm oil rises for fourth session on stronger rivals
JAKARTA, July 10 (Reuters) - Malaysian palm oil futures rallied for a fourth straight session on Thursday, tracking gains in Dalian and Chicago rival edible oils, with investors assessing data from the Malaysia Palm Oil Board (MPOB).
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange was up 27 ringgit, or 0.65%, to 4,184 ringgit ($984.47)a metric ton by the midday break.
"Malaysian palm oil futures extended modest gains, supported by technical momentum, a weaker ringgit, and strength in related vegetable oil markets, while crude oil prices held firm despite news of planned production increases," said Darren Lim, commodities strategist at brokerage Phillip Nova.
Dalian's most-active soyoil contract DBYcv1 was up 0.3%, while its palm oil contract DCPcv1 gained 0.12%. Soyoil prices on the Chicago Board of Trade BOc2 rose 0.71%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Further gains in the Malaysian palm oil contract were likely capped as palm oil stocks at the end of June rose 2.41% from the previous month to 2.03 million metric tons due to a decline in exports, data from the industry regulator showed on Thursday.
Meanwhile, oil prices dropped on Thursday as the latest tariff announcements by U.S. President Donald Trump were perceived by market participants to threaten global economic growth and demand for the resource.O/R
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit MYR=, palm's currency of trade, weakened 0.05% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Palm oil FCPOc3 may retest support at 4,134 ringgit per metric ton, a break below which could open the way towards the 4,096 ringgit to 4,115 ringgit range, according to Reuters technical analyst Wang Tao. TECH/C
($1 = 4.2500 ringgit)
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