Palm rises on stronger Dalian oils, weaker ringgit

Malaysian palm oil futures rose for a third straight session on Wednesday, supported by gains in rival Dalian oils and a weaker ringgit.

The benchmark palm oil contract FCPO1! for September delivery on the Bursa Malaysia Derivatives Exchange gained 0.58% to 4,172 ringgit ($981.65) in early trade.

FUNDAMENTALS

* Dalian's most-active soyoil contract (DBYU5) gained 0.23%, while its palm oil contract (DCPU5) climbed 1.24%. Soyoil prices on the Chicago Board of Trade (BOc2) eased 0.17%.

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

* The ringgit USDMYR, palm's currency of trade, weakened 0.35% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

* Indonesian palm oil exports to the United States may fall due to the 32% tariffs threatened on Indonesian goods, allowing competitors in Malaysia to gain market share, an industry official told Reuters on Tuesday.

* Oil prices edged lower after rising to two-week highs in the previous session, as investors watched new developments on U.S. tariffs and tried to gauge their impact.

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

* Palm oil may test resistance at 4,195 ringgit per ton, a break above which could lead to a gain into the 4,219 ringgit to 4,233 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS

* Major stock indexes mostly inched lower and U.S. copper prices jumped to a record high on Tuesday as U.S. President Donald Trump announced he would impose a 50% tariff on imported copper, broadening his global trade war.

($1 = 4.2500 ringgit)