Palm extends gains on firmer rival Dalian 

By Reuters News

- Malaysian palm oil futures rose for a second straight session on Thursday, supported by gains in other major vegetable oils markets, although weaker crude oil prices, ample inventories and profit-taking kept gains in check.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 29 ringgit, or 0.66%, to 4,439 ringgit ($1,087.99) a metric ton at the close.

The market traded higher following bullish rallies in rival Dalian during Asian trading hours as well as overnight soyoil futures in Chicago, said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group.

But he said lower energy prices and large Malaysian stockpiles prompted some traders to lock in profits after prices reached a key resistance level.

Dalian's most-active soyoil contract rose 0.46%, while its palm oil contract added 2.55%. Soyoil prices on the Chicago Board of Trade were down 0.44%.

Oil prices moved slightly lower after recovering from earlier losses, as persistent geopolitical tensions in the Middle East and Russia offset pressure from rising crude output. O/R

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

The Malaysian ringgit , weakened 0.15% against the dollar, making palm oil a little cheaper for overseas buyers.

($1 = 4.0800 ringgit)

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