Malaysian palm oil prices rise

KUALA LUMPUR, July 23 (Reuters) -Malaysian palm oil futures settled higher on Wednesday, extending gains from the previous session, supported by short-covering and gains in Dalian palm olein as well as Chicago soyoil.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 52 ringgit, or 1.22%, to 4,316 ringgit ($1,021.54) a metric ton at the close.

Strength in Dalian palm olein and Chicago soyoil markets spilled over into crude palm oil futures, a Kuala Lumpur-based trader said.

"Dalian's rally was driven by both short-covering and technical buying."

Benchmark crude palm oil futures hit a midday high of 4,334 ringgit, with short-covering likely emerging after prices broke above the 4,300-ringgit level, the trader added.

Dalian's most-active soyoil contract DBYcv1 added 0.02%, while its palm oil contract rose 0.74%. Soyoil prices on the Chicago Board of Trade gained 0.72%.

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

Oil prices were steady after falling for three consecutive sessions as a US tariff deal with Japan improved global trade sentiment. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.