Palm opens up, tracking Dalian's palm oil contracts

Malaysian palm oil futures rose slightly on Thursday, tracking gains on the palm oil contract at the Dalian market while the Chicago Board of Trade (CBOT) is closed for holiday.

The benchmark palm oil contract FCPO1! for September delivery on the Bursa Malaysia Derivatives Exchange gained 10 ringgit, or 0.24%, to 4,092 ringgit ($868.79) a metric ton in early trade.

FUNDAMENTALS

* Dalian's most-active soyoil contract (DBYcv1) traded flat, while its palm oil contract CPO1! gained 0.45%. The Chicago Board of Trade ZL1! was closed for Independence Day holiday.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* India's palm oil imports rose by 3% in June from the previous month to a six-month high on robust demand from refiners for upcoming festivals and as the oil traded at a discount to rival oils.

* Cargo surveyor Societe Generale de Surveillance (SGS) estimates exports of Malaysian palm oil products for June at 1,202,864 metric tons, up from 1,161,370 metric tons in May.

* Meanwhile, cargo surveyors AmSpec Agri and Intertek Testing Services estimated exports fell between 11.8% to 15.4% in June.

* Oil prices fell in early trade on Thursday after U.S. employment and business activity data came in weaker than expected, in signs the economy may be cooling in the world's top oil consuming nation.

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

* Palm oil FCPO1! may revisit its Wednesday low of 4,020 ringgit per metric ton, as wave (c) from 3,830 ringgit is ending, according to Reuters' technical analyst Wang Tao.