Palm rangebound, but poised for first weekly gain in three weeks

KUALA LUMPUR, Nov 13 (Reuters) - Malaysian palm oil futures traded in a tight range on Friday, but remained on course for their first weekly gain in three weeks as traders awaited price outlooks at a key industry conference and details of a planned Indonesian service fee.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 7 ringgit, or 0.16%, to 4,447 ringgit ($1,091.02) a metric ton by the midday break. The contract has risen 3.95% so far this week.

Market participants stayed cautious ahead of fresh price forecasts from leading analysts at the Indonesian Palm Oil Conference, a Kuala Lumpur-based trader said.

"Sentiment was further restrained by uncertainty surrounding reports of a new service fee by Danantara Sumberdaya Indonesia, with market participants awaiting further details on its potential impact on the palm oil industry," the trader said.

Dalian's most-active soyoil contract gained 0.31%, while its palm oil contract added 0.95%. Soyoil prices on the Chicago Board of Trade were up 0.3%.

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

The ringgit , palm's currency of trade, weakened 0.15% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

Oil prices were mixed, but set for a second weekly decline, as US plans to continue its Iranian blockade reduced the chance of renewed large-scale fighting that could disrupt Middle East supplies. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. O/R

Palm oil may retrace towards 4,382 ringgit per metric ton, following its failure to break a resistance at 4,471 ringgit, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.0760 ringgit)