VEGOILS-Palm falls 1.3% on cheaper rival oils

SINGAPORE, Dec 3 (Reuters) - Malaysian palm oil futures fell for a second straight session on Tuesday as weaker rival oils on the Chicago Board of Trade (CBOT) weighed on sentiment. The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was down 1.3% at 2,697 ringgit ($646.76) per tonne in early trade, after dropping up to 2,685 ringgit in the previous session. Soyoil prices in CBOT fell sharply overnight as traders awaited concrete signs of progress in trade negotiations between the United States and China before buying into a beaten-down market. "Palm oil prices are now in overbought zone and further push to higher range is little difficult," Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker said. "A consolidation or correction is needed to attract further demand," he added. Losses in rival oils on the Dalian Commodities Exchange also dragged palm prices lower. Dalian's January soyoil contract traded down 0.9%, while its palm oil contract fell 0.8%. "Palm also fell on spillover weakness from the overnight CBOT steep losses," said a Kuala Lumpur-based trader. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Also contributing to the fall was a slightly stronger ringgit, which rose 0.2%, which made the edible oil more expensive for holders of foreign currencies. Palm oil may test a support at 2,666 ringgit per tonne, a break below which could cause a fall to 2,608 ringgit, said Reuters analyst, Wang Tao. FUNDAMENTALS * U.S. corn futures firmed on Monday, edging up to their highest in nearly a month on a round of technical buying despite signs of poor demand, traders said. * Oil futures gained about 1% on Monday on hints the Organization of the Petroleum Exporting Countries (OPEC) and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand. MARKET NEWS * Asian shares skidded on Tuesday after U.S. President Donald Trump stunned markets with tariffs against Brazil and Argentina, recharging fears about global trade tensions, while weak U.S. factory data added to the investor gloom. * Wall Street stepped back from last week's record highs on Monday, with weak U.S. manufacturing data and fresh trade worries keeping buyers on the sidelines. * The dollar traded near a one-week low versus the yen on Tuesday and near the lowest in almost two weeks against the euro, on concern about weak U.S. manufacturing data and signs of new fronts in the U.S. trade war. DATA/EVENTS (GMT) 0030 Australia Current Account Balance Q3 0030 Australia Net Exports Contribution Q3 0330 Australia RBA Cash Rate Dec 1100 Brazil GDP YY, QQ Q3 PALM, CRUDE, SOY OIL PRICES AT 0314 GMT Contract Month Last Change Low High Volume MY PALM OIL FEB0 2710 -21.00 2691 2713 4390 MY PALM OIL JAN0 2688 -21.00 2671 2690 362 CHINA PALM JAN0 5514 -42.00 5502 5582 921590 OLEIN CHINA SOYOIL JAN0 6180 -56.00 6170 6240 121526 CBOT SOY OIL JAN0 30.22 +0.06 30.2 30.27 1990 INDIA PALM DEC9 0.00 +0.00 0.00 0 0 OIL INDIA SOYOIL DEC9 0 +0.00 0 0 0 NYMEX CRUDE JAN0 56.17 +0.21 55.93 56.20 12222 ($1 = 4.1700 ringgit) (Reporting by Fathin Ungku)