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Palm oil eases but set to post fourth weekly gain

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Updates with midday prices

KUALA LUMPUR, March 15 (Reuters) -Malaysian palm oil futures fell on Friday, but were set for a fourth straight weekly gain on concerns over extreme weather conditions affecting yields.

The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange slid 9 ringgit, or 0.21%,to 4,286 ringgit ($911.72) by midday.

The contract has gained4.69% so far this week.

Weather concerns and lower yields are the two main catalysts behind the recent rally in Malaysian palm oil futures, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

"Overall, supply constraints are still visible in the palm market, and until we sight a significant recovery, prices will continue to remain resilient," Supramaniam.

Dalian's most-active soyoil contract DBYcv1 edged up 0.28%, while its palm oil contract DCPcv1 gained 1.17%.Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.04%.

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

Oil prices edged lower on Friday but were on track to gain nearly 4% for the week as sharp declines in U.S. crude and fuel inventories, drone strikes on Russian refineries and a rise in energy demand forecasts buoyed prices. O/R

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The Malaysian ringgit MYR=, palm's currency of trade, fell 0.34% against the dollar, making the commodity less expensive for buyers holding the foreign currency.

Malaysia's palm oil stocks at the end of February dwindled to their lowest in seven months as production hit a 10-month low, offsetting the slowdown in exports.

Palm oil may break resistance at 4,326 ringgit and rise into a range of 4,378-4,410 ringgit per metric ton, driven by a wave C, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.7010 ringgit)

Reporting by Danial Azhar; Editing by Mrigank Dhaniwala and Janane Venkatraman

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils OILS/ASIA1 Malaysian palm oil exports SGSPALM1 CBOT soyoil futures 0#BO: CBOT soybean futures 0#S: Indian solvent SOLVENT01 Dalian Commodity Exchange DC/MENU Dalian soyoil futures 0#DBY: Dalian refined palm oil futures 0#DCP: Zhengzhou rapeseed oil 0#COI: European edible oil prices/trades OILS/E

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