(Updates prices, adds comment)
By Fransiska Nangoy
JAKARTA, Feb 20 (Reuters) - Malaysian palm oil futures
rose for a third consecutive session on Monday, tracking
strength in rival edible oils in China and crude oil.
The benchmark palm oil contract for May delivery
rose 1.55% to 4,195 ringgit ($947.81) per tonne by the midday
break, after gaining 5.11% in the last two sessions.
The contract hit the highest in more than four weeks earlier
in the session, riding on "spillover strength from the Dalian
commodity exchange", said a Kuala Lumpur-based trader, adding
that a recovery in crude oil also helped the market.
Dalian's most-active soyoil contract gained 1.09%,
while its palm oil contract rose 1.60%. The Chicago
Board of Trade was closed for a public holiday.
Palm is affected by price movements in related oils as they
compete for a share in the global vegetable oils market.
Oil prices edged higher on optimism about China's demand
recovery, after losing around 4% last week, though concerns over
rising supplies in the United States and forecasts of more
interest rate hikes tempered gains. Stronger crude oil futures make palm a more attractive
option for biodiesel feedstock.
Palm oil may retest a resistance zone of 4,155-4,196 ringgit
per tonne, probably after a moderate consolidation in the narrow
range of 4,083-4,155 ringgit, said Reuters technical analyst
Wang Tao. ($1 = 4.4260 ringgit)
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(Reporting by Fransiska Nangoy; Editing by Subhranshu Sahu)
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