(Updates with midday break prices, trader’s comment)
KUALA LUMPUR, March 19 (Reuters) - Malaysian palm oil futures climbed on Thursday after two straight sessions of losses, supported by stronger Dalian oils, though profit-taking limited gains in a holiday truncated week.
The benchmark palm oil contract (FCPOc3) for June delivery on the Bursa Malaysia Derivatives Exchange gained 32 ringgit, or 0.71%, to 4,560 ringgit ($1,158.83) a metric ton by the midday break.
The contract is down 0.26% so far this week and is poised to snap a two-week rising streak. Trading will be closed on Friday for a public holiday and resume on March 24.
Palm traded higher, buoyed by firmer Dalian oils, but profit-taking emerged before the extended Eid holidays, a Kuala Lumpur-based trader said.
“Some market participants are also staying on the sidelines due to the long weekend, limiting further upside momentum,” the trader added.
Dalian’s most-active soyoil contract (DBYcv1) rose 0.23%, while its palm oil contract (DCPcv1) shed 0.49%. Soyoil prices on the Chicago Board of Trade (BOcv1) fell 0.58%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Crude oil rose, with benchmark Brent advancing as much as $5 a barrel, after Iran attacked energy facilities across the region following a strike on its South Pars gas field - a major escalation in its war with the United States and Israel. (O/R)
Stronger crude makes palm a more attractive option for biodiesel feedstock.
Crude palm oil is expected to remain above 4,450 ringgit ($1,130) per metric ton in the near-term due to rising energy prices and the Middle East uncertainty, the Malaysian Palm Oil Council said.
Malaysia’s fertiliser makers are suspending new orders as supply-chain disruptions and feedstock shortages from the conflict drive up raw material prices, threatening to raise output costs for palm oil producers.
The ringgit (MYR=) , palm’s currency of trade, weakened 0.56% against the dollar, making the commodity cheaper for buyers holding foreign currencies. ($1 = 3.9350 ringgit)

VEGOILS-Palm rises on stronger Dalian, profit-taking caps gains