07.07.2021 (www.nasdaq.com)  - KUALA LUMPUR, July 8 (Reuters) - Malaysian palm oil futures inched higher on Thursday after two straight sessions of falls, as the ringgit weakened and rival Chicago soyoil jumped overnight on worries about the declining crop condition.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 10 ringgit, or 0.26%, to 3,805 ringgit ($912.25) a tonne by 0254 GMT.

FUNDAMENTALS

* Malaysia's biggest political party and key ally in the ruling coalition withdrew support for Prime Minister Muhyiddin Yassin late on Wednesday and called on him to resign for failing to manage the COVID-19 pandemic.

* The ringgit MYR=, palm's currency of trade, fell 0.26% against the dollar, making the commodity cheaper for holders of foreign currencies.

* The U.S. Department of Agriculture, in a weekly report, surprised the market by lowering its good-to-excellent rating for the nation's soybean crop to 59% from 60%.

* Soyoil prices on the Chicago Board of Trade BOcv1 slipped 0.3%, after rising 1.6% in the previous session. Dalian's most-active soyoil contract DBYcv1 fell 0.2%, while its palm oil contract DCPcv1 was down 0.4%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* Palm oil still targets a range of 3,602 ringgit to 3,691 ringgit per tonne, as a gap forming on July 1 is yet to be filled, Reuters technical analyst Wang Tao said. TECH/C

MARKET NEWS

* U.S. Treasuries prices maintained gains on Wednesday, holding down yields, and two stock indexes notched record highs after minutes from the Federal Reserve's latest meeting largely confirmed market expectations. The dollar remained firm. MKTS/GLOB

DATA/EVENTS

1200 Brazil IPCA Inflation Index MM June

1230 US Initial Jobless Claim weekly

($1 = 4.1710 ringgit)

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(Reporting by Mei Mei Chu; Editing by Subhranshu Sahu)

((Meifong.chu@thomsonreuters.com))