VEGOILS-Palm falls for third session on cheaper rival oils

SINGAPORE, Nov 8 (Reuters) - Malaysian palm oil futures fell more than 1% on Friday as prices of rival oils on the Dalian exchange and the Chicago Board of Trade slipped, though a weaker ringgit limited the losses. The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange fell 0.2% to 2,524 ringgit ($610.84) per tonne, extending losses to a third straight session. The contract opened 1.3% lower at 2,520 ringgit. Palm's prices were mainly weighed down by cheaper competition elsewhere, said a Kuala Lumpur based trader. Dalian's January palm oil contract last traded 1.6% lower on Friday, while the soyoil contract fell 0.2%. Elsewhere, the U.S. soyoil futures on the Chicago Board of Trade were down 0.1%. The losses across the board were due to profit-taking by traders, said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker. Palm oil is affected by price movements in related oils as they compete for share in the global vegetable oils market. Capping the losses was a weaker ringgit, which fell 0.2% against the dollar, making the edible oil cheaper for holders of foreign currencies. On a weekly basis, however, palm oil saw its fifth consecutive weekly jump lifted by "bullish talks of lower production and biofuel mandates", Bagani said. Malaysia said last month the implementation of biofuels mandates in Malaysia and Indonesia will increase consumption of palm oil up to 1.3 million tonnes and 10 million tonnes per year, respectively. Malaysian palm oil stockpiles likely rose in October as production increased to its highest in a year, even as export demand surged for the edible oil, a Reuters survey showed. The Malaysian Palm Oil Board is due to issue October's data on Monday. FUNDAMENTALS * U.S. soybeans edged lower on Friday, with the oilseed poised to drop this week, on concerns that China and the United States have not been able to seal an agreement to end their trade dispute. * U.S. crude oil futures fell on Friday amid fading hopes that a deal to end the lingering trade war between Washington and Beijing would be signed any time soon, the gloom compounded by rising crude inventories in the United States. Palm oil FCPOc3 may retest a resistance at 2,573 ringgit per tonne, a break above which could lead to a gain into a range of 2,608-2,666 ringgit. MARKET NEWS * World stocks rallied to near record highs on Friday after China said it had agreed with the United States to cancel tariffs in phases, a key demand of Beijing for sealing a deal to end a trade war that has slowed economic growth and roiled markets. * The Dow and S&P 500 notched record closing highs on Thursday as the latest signs of progress in U.S.-China trade relations relieved investors, but a report raising fresh worries about the outlook for a deal limited the day's gains. * The dollar held on to its gains versus the yen and the Swiss franc on Friday as a China-U.S. agreement to roll back tariffs on each others' goods supported riskier assets, even as some reports suggest a preliminary trade pact is far from a done deal. DATA/EVENTS (GMT) 0030 Australia Housing Finance Sept 0745 France Reserve Assets Total Oct 1500 US U Mich Sentiment Prelim Nov PALM, CRUDE, SOY OIL PRICES AT 0259 GMT Contract Month Last Change Low High Volume MY PALM OIL JAN0 2525 -3.00 2512 2531 3496 MY PALM OIL DEC9 2482 +4.00 2470 2482 301 MY PALM OIL JAN0 2525 -3.00 2512 2531 3496 CHINA PALM JAN0 5316 -84.00 5266 5334 151130 OLEIN 2 CHINA SOYOIL JAN0 6358 -10.00 6284 6366 610690 CBOT SOY OIL DEC9 31.4 -0.03 31.35 31.44 1835 INDIA PALM NOV9 0.00 +0.00 0.00 0 0 OIL INDIA SOYOIL NOV9 792.95 +5.15 784.6 794.15 3290 NYMEX CRUDE DEC9 56.92 -0.23 56.83 57.13 14168 ($1 = 4.1320 ringgit) (Reporting by Fathin Ungku; Editing by Amy Caren Daniel)