VEGOILS-Palm falls on weak rival edible oils, rising output, sluggish demand

KUALA LUMPUR, July 31 (Reuters) - Malaysian palm oil futures slipped on Thursday, snapping two straight sessions of gains, weighed by rival edible oils while concerns over rising production and sluggish export demand added further pressure on prices.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange slid 28 ringgit, or 0.65%, to 4,250 ringgit ($1,000) a metric ton at the midday break.

Crude palm oil futures traded lower tracking weakness in the Chicago soybean oil and Dalian palm olein market during Asian hours, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

"The persistent concern over rising output and weak export also added pressure on the market," he said.

Cargo surveyors will release their July export estimates later in the day.

Dalian's most-active soyoil contract DBYcv1 fell 0.61%, while its palm oil contract DCPcv1 lost 0.51%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.82%.

Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

At 0545 GMT, the benchmark Brent crude LCOc1 was down 0.33% at $73 per barrel. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit MYR=, palm's currency of trade, weakened 0.35% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

Malaysian palm oil exports to the United States during January-May rose 51.8% from a year earlier to 93,000 metric tons, the Plantation and Commodities Ministry said.

($1 = 4.2500 ringgit)

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