Palm oil in line for weekly gain on stronger U.S. soyoil

Malaysian palm oil futures rose during the first half of trade on Friday, in line for a third day of gains in four, tracking strength in U.S. soyoil on the Chicago Board of Trade.

Palm is also in line for a weekly gain, up 1.6 percent so far, supported by declines in the ringgit earlier this week.

A weaker ringgit, palm's currency of trade, usually makes the edible oil cheaper for foreign buyers. The ringgit declined 0.4 percent so far this week against the dollar after a global index provider said it could drop Malaysia from the FTSE World Government Bond Index due to market accessibility and liquidity concerns.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 0.6 percent to 2,196 ringgit ($531.72) a tonne at the midday break.

"Palm is up tracking U.S. soyoil," said a Kuala Lumpur-based futures trader. "Moving forward, the market is looking at the export pace also, which are likely to be good."

Malaysia palm oil shipments had gained between 1.5-6.7 percent for the 1-15 April period versus the corresponding duration in March, according to cargo surveyor data.

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Silver trading range for the day is 40258-41086

Silver on MCX settled up 0.94% at 40791 as investors were uncertain whether the U.S. central bank would signal a tighter future monetary policy at a meeting. The U.S. Federal Reserve will likely raise its target interest rate to above the rate of inflation for the first time in a decade this week, seeking to sustain the second-longest U.S. expansion on record while continuing to edge rates higher. U.S. inflation expectations were flat in May after several months of gains, while Americans grew more pessimistic about income and spending growth, according to a Federal Reserve Bank of New York survey.

Trading Ideas:

* Silver trading range for the day is 40258-41086.

* Silver prices remained supported as investors were uncertain whether the U.S. central bank would signal a tighter future monetary policy at a meeting.

* With no major U.S. economic reports, market participants were busy digesting the increased trade tensions that came out of the G7 summit over the weekend.

* The Fed’s two-day meeting will kick off with almost certain to raise interest rates by a quarter point for a second time this year.

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