VEGOILS-Palm falls more than 3% on weaker Dalian contracts and crude oil

(Updates with midday prices, trader's comments) KUALA LUMPUR, June 4 (Reuters) - Malaysian palm oil futures fell over 3% on Tuesday as trading resumed after a public holiday, with weakness in rival Dalian contracts and crude oil prices weighing on the market. The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange dropped 135 ringgit, or 3.31%, to 3,941 ringgit ($839.94) per metric ton by the midday break. The contract gained 5% last week. Weakness in Dalian soyoil futures and crude oil prices are putting pressure on Malaysian palm oil futures, said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co. Dalian's most-active soyoil contract DBYcv1 fell 1.65%, while its palm oil contract DCPcv1 lost 1.98%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.32%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Oil prices eased in Asian trade on Tuesday, extending losses from the previous session when prices fell to their lowest in four months, as investors worried about supply ticking up later in the year amid cautious demand outlooks from key consumer the U.S. O/R At 0551 GMT, Brent crude futures LCOc1 were down 78 cents, or 1%, to $77.59 a barrel. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. The ringgit MYR= , palm's currency of trade, strengthened 0.23% against the dollar, making the commodity more expensive for buyers holding the foreign currency. ($1 = 4.6920 ringgit) (Reporting by Danial Azhar; Editing by Subhranshu Sahu and Mrigank Dhaniwala) (([email protected] ; Twitter: https://twitter.com/dan_azh ;;)) ((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 ))