(Update prices, add analyst comments)
JAKARTA, Feb 17 (Reuters) - Malaysian palm oil futures
hit a more than six-week high on Friday and were set for a
second consecutive weekly gain, as stronger rival edible oils on
the Dalian exchange and a weaker ringgit supported the market.
The benchmark palm oil contract for May delivery
had risen 1.55% to 4,132 ringgit ($933.36) per tonne by the
midday break, adding 5.11% so far in the week. The contract hit
its highest since Jan. 4 in early trade, extending gains to a
second day.
"Crude palm oil futures opened gap higher for the third
straight day following bullish Chicago soy oil futures overnight
and Dalian RBD palm olein, soy oil and ZCE rapeseed oil futures
in Asian hours today," said Anilkumar Bagani, research head of
Mumbai-based vegetable oils broker Sunvin Group.
Dalian's most-active soyoil contract gained 2.38%,
while its palm oil contract increased 3.41%. Soyoil
prices on the Chicago Board of Trade were down 0.14%.
Palm is affected by price movements in related oils as they
compete for a share in the global vegetable oils market.
Higher Indonesian tax and levy on palm oil exports for Feb.
16-28 also supported the contract, Bagani said.
"The increase in Indonesia palm oil export levy and taxes...
along with lower palm oil export availability until Ramadan is
keeping sellers rigid to lower prices," he added.
The Malaysian ringgit, palm's currency of trade, slid 0.63%
in early deals. A weaker ringgit makes palm oil more attractive
to foreign currency holders.
Palm oil's next resistance is at 4,196 ringgit, a break
above which could lead to a gain to 4,311 ringgit. The current
rise is tentatively classified as a part of a big flat pattern
developing from the Dec. 12, 2022 low of 3,721 ringgit, said
Reuters technical analyst Wang Tao ($1 = 4.4270 ringgit)
(Reporting by Bernadette Christina Munthe; editing by
Uttaresh.V and Subhranshu Sahu)
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