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

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 136 ringgit, or 3.34%, to 3,940 ringgit ($839.73) per metric ton in early trade. The contract gained 5% last week. FUNDAMENTALS * Dalian's most-active soyoil contract DBYcv1 fell 1.45%, while its palm oil contract DCPcv1 lost 2.03%. 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 early trade, extending their 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. O/R * At 0243 GMT, Brent crude futures LCOc1 were down 53 cents, or 0.68%, to $77.83 a barrel. * Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. * The ringgit MYR= , palm's currency of trade, strengthened 0.26% against the dollar, making the commodity more expensive for buyers holding the foreign currency. * There will be no daily reports from Reuters markets analyst Wang Tao during June 4-17. Routine reports will resume on June 18. TECH/C MARKET NEWS * Asian share markets were mildly weaker as global investors consider the prospect the U.S. economy's 'exceptionalism' is starting to unwind as manufacturing activity in the world's largest economy further weakened. MKTS/GLOB DATA/EVENTS 0755 Germany Unemployment Chg, Rate SA May 0830 UK Reserve Assets Total May 1400 US Factory Orders MM April ($1 = 4.6920 ringgit) (Reporting by Danial Azhar; Editing by Subhranshu Sahu) (([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 ))