VEGOILS-Palm falls over 1% on cheaper rival oils

SINGAPORE, Nov 26 (Reuters) - Malaysian palm oil futures dropped more than 1% on Tuesday, tracking cheaper rival oils on the Dalian Commodities Exchange amid higher imports. The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was 1.3% lower at 2,697 ringgit ($646.76) in early trade, after falling 0.6% in the previous session on poor exports data. The contract fell sharply due to cheaper alternatives on the Dalian Commodities Exchange, two traders told Reuters. Palm oil is affected by price movements in related oils as they compete for share in the global vegetable oils market. Dalian's January palm oil contract fell 2.2%, while the soyoil contract slid 1.8%. They are lower due to higher palm imports and because of a market correction after some overbuying in the previous session, a Kuala Lumpur-based trader said. "Palm futures on the Dalian fell on higher palm oil imports by China in October and expectations of further imports in the November and December," said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker. However, losses were limited by a slightly weaker ringgit, which slipped 0.1% against the dollar, making the edible oil cheaper for holders of foreign currencies. Elsewhere, soybean oil on the Chicago Board of Trade traded 0.1% higher. FUNDAMENTALS * U.S. wheat futures climbed to a one-month high on Monday on firm domestic cash values and signs of rising global cash prices, traders said. * Oil prices were steady on Tuesday, holding onto gains from the previous session, after positive comments from the United States and China kept alive hopes that the world's two largest economies are soon to agree an end their trade war. MARKET NEWS * Asian stocks rose on Tuesday as an apparent olive branch from Beijing in trade talks with Washington added to other recent signs of progress, fuelling a rally in Wall Street's main benchmarks to record highs. * Each of Wall Street's three major averages kicked off the trading week with record closes on Monday as signs pointed to progress between the United States and China on a trade truce, while a round of merger deals also helped buoy sentiment. * The dollar held an upper hand against the yen on Tuesday as optimism on a trade deal between the United States and China dented the allure of the safe-haven unit while the British pound was supported by hopes of an end to a hung parliament. DATA/EVENTS (GMT) 1500 US Consumer Confidence Nov 1500 US New Home Sales-Units Oct PALM, CRUDE, SOY OIL PRICES AT 0246 GMT Contract Month Last Change Low High Volume MY PALM OIL DEC9 2695 -38.00 2693 2705 3482 MY PALM OIL JAN0 2665 -39.00 2662 2673 290 MY PALM OIL FEB0 2695 -38.00 2693 2705 3482 CHINA PALM JAN0 5564 -120.00 5556 5682 189917 OLEIN 0 CHINA SOYOIL JAN0 6256 -114.00 6246 6330 545762 CBOT SOY OIL JAN0 30.61 +0.02 30.58 30.66 1920 INDIA PALM NOV9 0.00 +0.00 0.00 0 0 OIL INDIA SOYOIL DEC9 803 -4.30 802.1 813.8 23950 NYMEX CRUDE JAN0 58.01 +0.00 57.84 58.12 11571 ($1 = 4.1700 ringgit) (Reporting by Fathin Ungku; Editing by Aditya Soni)