Updates with midday prices, comment on paragraph 4

By Dewi Kurniawati

JAKARTA, May 17 (Reuters) -Malaysian palm oil futures extended gains on Friday and were poised for a weekly gain as traders tracked strength in rival oils at the Dalian and Chicago markets.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange was up 45 ringgit, or 1.18%, at 3,849 ringgit ($822.26) a metric ton by midday.

The contract has gained 1.05% so far this week.

"The futures were seen trading higher today following bullish momentum in Chicago soyoil futures overnight and in South American market prices," Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group said.

Dalian's most-active soyoil contract DBYcv1 rose 1.03%, while its palm oil contract DCPcv1 gained 0.93%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.11%.

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

Malaysia has maintained its June export tax for crude palm oil at 8% and lowered its reference price to 3,956.06 ringgit ($845.13) per metric ton for June, compared with May's 4,273.93 ringgit a ton, a circular on the Malaysian Palm Oil Board website showed on Thursday.

According to cargo surveyor Intertek Testing Services, exports of Malaysian palm oil products for May 1-15 fell 5.2% to 600,777 metric tons from 633,680 metric tons shipped during the same period in April.

Cargo surveyor Societe Generale de Surveillance (SGS) estimates exports of Malaysian palm oil products for May 1-15 at 426,947 metric tons, according to LSEG.

Soybean harvesting in flood-hit Rio Grande do Sul state reached 85% of the area planted with the oilseed, up from 78% last week, according to crop agency Emater on Thursday.

Oil prices gained on Friday, with global benchmark Brent set for its first weekly increase in three weeks on signs of improving global demand amid stronger economic indicators from key consumers China and the United States.O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Palm oil FCPOc3 looks neutral in a narrow range of 3,787 ringgit to 3,857 ringgit per metric ton and an escape could suggest a direction, according to Reuters' technical analyst Wang Tao.

($1 = 4.6810 ringgit)

Reporting by Dewi Kurniawati; Editing by Sherry Jacob-Phillips and Sohini Goswami

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Vegetable oils OILS/ASIA1
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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