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JAKARTA, Feb 20 (Reuters)Malaysian palm oil futures were set for a third straight session of gains on Monday, tracking strength in rival edible oils on the Dalian commodity exchange.

The benchmark palm oil contract FCPOc3 for May delivery rose 0.75% to 4,162 ringgit ($939.50) per tonne in early trade, after gaining 5.11% in the last two sessions.

FUNDAMENTALS

* Dalian’s most-active soyoil contract DBYv1 gained 0.88%, while its palm oil contract DCPv1 rose 1.06%. 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.

* The ringgit, palm’s currency of trade, was trading near its weakest level against the U.S. dollar in nearly two months. A weaker ringgit makes palm oil more attractive to foreign currency holders.

* 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. TECH/C

MARKET NEWS

* Asian shares got off to a subdued start as a U.S. holiday made for slow trading ahead of minutes of the last Federal Reserve meeting and a reading on core inflation that could add to the risk of interest rates heading higher for longer. MKTS/GLOB

* Oil prices were little changed in early Asian trade, after settling down $2 a barrel on Friday, as rising supplies in the United States and forecasts of more interest rate hikes cooled optimism over China’s demand recovery. O/R

DATA/EVENTS (GMT)

0115 China Loan Prime Rate 1Y, 5Y Feb

1500 EU Consumer Confid. Flash Feb

($1 = 4.4300 ringgit)

(Reporting by Fransiska Nangoy; Editing by Subhranshu Sahu)

((Fransiska.Nangoy@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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