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VEGOILS - Palm up as Dalian oil and Chicago soyoil counter the weak crude.

The price of Malaysian palm oils rose on Thursday for a second session, with Dalian oil, a stronger competitor, supporting the market. Crude oil and Chicago soybean oil were weaker.

The benchmark palm-oil contract for September delivery at Bursa Malaysia's Derivatives exchange gained 31 ringgit or 0.76% to $4093 ringgit (US$969.91) per metric ton.

Anilkumar bagani, research director at Mumbai-based Sunvin Group, said that the bullish momentum of Chinese vegetable oils during Asian hour supported the market.

He added that the gains were capped by a decline in Chicago soyoil and energy prices.

Dalian's palm oil contract, which is the most active contract in Dalian, rose by 1.22%. Chicago Board of Trade soyoil fell by 0.05%.

As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils.

Investors are worried that higher U.S. Tariffs could be reinstated and lower fuel demand. Major producers are also expected to announce a production increase.

Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.

The palm ringgit's trade currency strengthened by 0.14% in relation to the dollar. This made the commodity slightly cheaper for buyers who hold foreign currencies. ($1 = 4.2200 ringgit)

(source: Reuters)