Palm tracks Chicago soyoils, crude oil higher

Malaysian palm oil futures opened higher on Tuesday, snapping three consecutive sessions of losses, underpinned by strength in crude oil and Chicago soyoil, while a weak ringgit also lent support.

The benchmark palm oil contract FCPO1! for June delivery on the Bursa Malaysia Derivatives Exchange surged 84 ringgit, or 2.01% to 4,269 ringgit ($952.05) a metric ton in early trade.

On Monday, the contract fell to its lowest since January 24 as China's retaliatory tariffs on U.S. goods raised fears of a widening global trade war.

FUNDAMENTALS

* Dalian's most-active soyoil contract (DBYcv1) fell 0.73%, while its palm oil contract CPO1! slipped 0.14%. Soyoil prices on the Chicago Board of Trade (CBOT) (BOc2) added 0.79%.

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

* Oil prices rose more than 1%, rebounding after a hefty selloff in recent sessions led by concerns that U.S. tariffs might depress demand and lead to a global recession.

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

* The ringgit USDMYR, palm's currency of trade, weakened 0.18% against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies.

* Palm oil FCPOc3 may retest resistance at 4,269 ringgit per metric ton, a break above which could lead to a gain into the 4,323-4,362 ringgit range.