VEGOILS-Palm oil climbs for peak from day five to seven weeks

KUALA LUMPUR, October 20 (Reuters)Malaysian palm oil futures extended their rally for a fifth straight session on Thursday, hitting their highest level in seven weeks, buoyed by a weakening ringgit and gains in rival edible oils.

The reference palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 46 ringgits, or 1.12%, to 4,164 ringgits ($881.08) a tonne at the start of trading.

FUNDAMENTALS

* Concerns about wet weather led to reduced production in major producers Indonesia and Malaysia, as well as fears of higher Indian import duties helped support prices.

* The most active soybean oil contract in Dalian DBYcv1 rose 1%, while its palm oil contract DCPcv1 gained 2.2%. Chicago Board of Trade Soybean Oil Price BOcv1 slipped after rising 1.7% overnight.

* Palm oil is impacted by related oil price movements as they compete for share of the global vegetable oil market.

* The ringgit MYR=the palm’s currency, fell 0.17% against the dollar, making it cheaper for buyers holding foreign currency.

* Palm oil may test a resistance zone of 4,184 to 4,194 ringgits per tonne, with a good chance of breaking above that range and reaching 4,253 ringgits, Reuters technical analyst Wang Tao said. TECHNICAL/C

MARKET NEWS

* Asian stock markets fell on Thursday as investor fears of a looming recession weighed on risk appetite, while Treasury yields rose on expectations that the Federal Reserve will remain aggressive in its hikes interest rate. MKTS/GLOB

DATA/EVENTS (GMT)

0030 Japan Employment, unemployment rate Sept.

0115 Chinese Loan Prime Rate 1yr, 5yr Oct.

0645 France Business Climate Mfg, Global Oct

1230 US Initial Clm unemployed weekly

1230 United States Philly Fed Business Index Oct

1,400 sales of existing homes in the United States in September

($1 = 4.7260 ringgit)

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(Reporting by Mei Mei Chu; Editing by Stephen Coates)

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Carol N. Valencia