Palm up on stronger Dalian, crude oil

Malaysian palm oil futures rose for a second consecutive session on Tuesday, buoyed by stronger Dalian oils and firmer crude oil prices.

The benchmark palm oil contract FCPO1! for March delivery on the Bursa Malaysia Derivatives Exchange gained 22 ringgit, or 0.48%, to 4,564 ringgit a metric ton in early trade.

FUNDAMENTALS

* Dalian's most-active soyoil contract (DBYcv1) rose 0.79%, while its palm oil contract CPO1! gained 1.13%. Soyoil prices on the Chicago Board of Trade ZL1! were down 0.2%.

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

* Oil prices were up on Tuesday in thin trade ahead of the Christmas Day holiday, with prices supported by U.S. economic data and rising oil demand in India, the world's third-largest oil importer. O/R

* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

* The ringgit USDMYR, palm's currency of trade, strengthened 0.11% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

* The Bursa Malaysia Derivatives Exchange will be closed on Wednesday for Christmas.

* Palm oil may bounce further into the range of 4,624 ringgit to 4,684 ringgit per metric ton, as it has climbed a falling channel, Reuters technical analyst Wang Tao said. TECH/C