VEGOILS-Palm falls for fifth session amid Indonesia, US biofuel policy uncertainty

(Updates closing price) KUALA LUMPUR, Dec 19 (Reuters) - Malaysian palm oil futures slipped on Thursday for a fifth straight session, weighed down by uncertainty over Indonesian and U.S. biofuel policies. The benchmark palm oil contract FCPOc3 for March delivery on the Bursa Malaysia Derivatives Exchange closed down 0.38% at 4,512 ringgit ($1,002.00) a metric ton. During the session, the contract fell as much as 3% and had briefly gained 0.73%. Crude palm oil prices extended their sell-off from Wednesday following a change in sentiments in the global vegetable oil markets this week, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin group. "This was mostly due to the uncertainty over the Indonesia and U.S. biofuel policies amid higher vegetable oil prices, thus incurring higher subsidies for the respective programmes." Indonesia's plan to expand its biodiesel mandate from Jan. 1, which could curb global palm oil supplies, looks increasingly likely to be implemented gradually, analysts said, as industry participants seek a phase-in period. A U.S. government funding bill released on Tuesday included a plan to allow year-round sales of gasoline with a higher ethanol blend, known as E15. Traders had said that higher blending of corn-based ethanol in the U.S. could reduce the demand for soybean oil used in making biodiesel. Dalian's most-active soyoil contract DBYcv1 fell 3.48%, while its palm oil contract DCPcv1 shed 3.83%. Soyoil prices on the Chicago Board of Trade BOcv1 rose 1.01%. Palm oil tracks the price movements of rival edible oils as it competes for a share in the global vegetable oils market. The ringgit MYR= , palm's currency of trade, weakened 0.81% against the U.S. dollar, making the commodity cheaper for buyers holding foreign currencies. ($1 = 4.5030 ringgit) (Reporting by Ashley Tang; Editing by Subhranshu Sahu, Sumana Nandy and Eileen Soreng) (([email protected];)) ((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 ))