29.07.2021 (www.nasdaq.com) - Adds closing prices

SINGAPORE, July 29 (Reuters) - Malaysian palm oil prices rose more than 2% on Thursday, after a sharp fall in the previous session, as U.S. soyoil inched higher and the Dalian contracts trimmed losses.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange rose 123 ringgit, or 2.7%, to 4,431 ringgit ($1,045.79) a tonne.

The contract fell 2.6% in the previous session to end a three-day rally, dragged down by lower demand from top buyers India and China.

"External markets are off their lows," a Kuala Lumpur-based trader told Reuters, referring to the soyoil recovery on the Chicago Board of Trade (CBOT) and softening losses in palm oil on the Dalian.

CBOT soybeans reversed earlier losses on technical buying, while soyoil gained on higher demand from U.S. food-service companies and the renewable diesel sector.

CBOT's soybean oil contract BOc2 was last up 0.5%.

Rival palm oil on the Dalian Commodity Exchange DCPcv1 was last down 0.1% after falling as much as 1.9% earlier in the session.

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

Global benchmark brent oil prices, which rose above $75 a barrel on Thursday, also supported prices.

Top producer Indonesia mandates that diesel be mixed with at least 30% bio content coming from palm. Costlier crude oil makes palm an attractive feedstock for biodiesel.

($1 = 4.2370 ringgit)

(Reporting by Fathin Ungku; Editing by Ramakrishnan M. and Aditya Soni)

((Fathin.ungku@thomsonreuters.com;))

https://www.nasdaq.com/articles/vegoils-palm-jumps-over-2-on-firmer-u.s.-soyoil-2021-07-29