*
Prices hit a 7-week high on stronger U.S. soyoil, crude
*
Technical rebound seen after Wednesday's profit-booking
*
Tight Indonesian supply and weaker Malaysian production
outlook
continue to provide support
(Updates with closing prices)
By Matthew Chye
SINGAPORE, Feb 23 (Reuters) - Malaysian palm oil futures
closed higher on Thursday after hitting a seven-week peak,
supported by stronger U.S. soyoil and crude prices.
The benchmark palm oil contract for May delivery on
the Bursa Malaysia Derivatives Exchange gained 89 ringgit, or
2.15%, to 4,235 ringgit ($955.77) by the end of trading on
Thursday.
The contract hit its highest since Jan. 4 at 4,238 ringgit
earlier in the session.
Soyoil prices on the Chicago Board of Trade were up
0.63%. Dalian's most active soyoil contract lost 0.65%,
while its palm oil contract gave up 0.36%.
Palm oil is affected by price movements in related oils as
they compete for a share in the global vegetable oils market.
Oil prices edged up on Thursday, after Brent crude posted
its biggest single-day loss in seven weeks the day before, as
market players reassessed prospects for supply and demand. Stronger crude oil futures make palm a more attractive
option for biodiesel feedstock.
Palm futures traded higher, showing resilience after being
struck by profit-taking in the previous session, said Sathia
Varqa, co-founder of Singapore-based Palm Oil Analytics.
Lingering concerns about tight supply from top producer
Indonesia and a weaker Malaysian production outlook have
supported the market over the past two weeks.
However, there are no fresh fundamentals to drive the market
higher except for feel-good sentiment, raising doubts about the
sustainability of high prices, Varqa said.
Malaysia maintained its March export tax for crude palm oil
at 8% and lowered the reference price, a circular on the
Malaysian Palm Oil Board website showed on Wednesday.
($1 = 4.4310 ringgit)
(Reporting by Matthew Chye; Editing by Sonia Cheema and
Subhranshu Sahu)
* To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in and press enter, or double click between the brackets.
* Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils Malaysian palm oil exports CBOT soyoil futures CBOT soybean futures Indian solvent Dalian Commodity Exchange Dalian soyoil futures Dalian refined palm oil futures Zhengzhou rapeseed oil European edible oil prices/trades ))
