Palm extends gains on stronger rival oils, crude

KUALA LUMPUR (Reuters) - Malaysian palm oil futures climbed for a third consecutive day on Tuesday, boosted by stronger rival oils and crude prices, while global oil markets roiled after Iran vowed to hit back at any fresh US strikes.

The benchmark palm oil contract for November delivery on Bursa Malaysia's derivatives exchange advanced 0.42 percent to 4,999 ringgit (US$1,235.85) per metric ton in early trade, the highest since August.

Palm oil, which competes with other edible oils for global market share, has tracked the price moves of rival soyoil, with Dalian's most-active soyoil contract up 0.42 percent, and Chicago Board of Trade's soyoil contract jumping 1.67 percent. Oil prices were also higher on Tuesday, with the US crude benchmark edging up 0.59 percent.

Iran's threat to retaliate against any US attacks on its assets has heightened concerns about potential supply disruptions, while the yen's surge and mixed Asian economic data added to the volatility in global oil markets. Meanwhile, the Malaysian ringgit slipped 0.05 percent against the dollar, making palm oil slightly cheaper for foreign buyers.

Stronger crude oil prices make palm oil more attractive as a feedstock for biodiesel production. If current bullish momentum holds, palm oil could reclaim its August 21 high of 5,031 ringgit per metric ton, according to Reuters technical analyst Wang Tao.