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JAKARTA, Feb 17 (Reuters) – Malaysian palm oil futures extended gains for a second straight session on Friday and were set to post 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 FCPOc3 for May delivery rose 82 ringgit or 2.02% to 4,151 ringgit ($938.08) per tonne in early trade.
FUNDAMENTALS
* Dalian’s most-active soyoil contract DBYv1 gained 2.29%, while its palm oil contract DCPv1 increased 3.41%. Soyoil prices on the Chicago Board of Trade BOc2 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.
* Malaysian ringgit, the contract currency of trade, slid 0.63% during early trading. 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 TECH/C
MARKET NEWS
* Asian equities slipped, while the dollar hovered around six-week highs as economic data and hawkish comments from Federal Reserve officials revived fears that the U.S. central bank will stick to its monetary tightening path.MKTS/GLOB
* Oil prices slid and were on track for weekly losses. O/R
DATA/EVENTS (GMT)
0700 UK Retail Sales MM, YY Jan
0700 UK Retail Sales Ex-Fuel MM Jan
0745 France CPI (EU Norm) Final MM, YY Jan
1330 US Import Prices YY Jan
($1 = 4.4250 ringgit)
(Reporting by Bernadette Christina Munthe; editing by Uttaresh.V)
((Bernadette.christina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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