VEGOILS-Palm in tight range as geopolitical tensions, mixed oils weigh

KUALA LUMPUR, March 24 (Reuters) - Malaysian palm oil futures traded in a tight range on Tuesday, resuming after a long Eid holiday break, with rival edible oils on the Dalian and Chicago exchanges diverging and the Middle East war keeping traders cautious.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange traded between 4,565 ringgit and 4,597 ringgit per ton by the midday break, last settling 0.63% lower at 4,582 ringgit ($1,161.18).

Mixed price movements in Dalian palm olein and Chicago soybean oil kept palm futures moving within a relatively tight range, a Kuala Lumpur-based trader said.

"Geopolitical uncertainty also kept market participants on the sidelines, after U.S. President Donald Trump said that U.S. and Iran had a 'productive conversation' but Tehran denied that any negotiations had taken place," the trader added.

Dalian's most-active soyoil contract DBYcv1 fell 0.28%, while its palm oil contract DCPcv1 shed 0.81%. Soyoil prices on the Chicago Board of Trade BOcv1 rose 0.78%.

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

Oil prices rose on supply fears, as the Middle East war showed no signs of ending. O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit MYR=, palm's currency of trade, weakened 0.2% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

($1 = 3.9460 ringgit)