VEGOILS-Palm falls on weaker soyoil, snaps five-day rally

KUALA LUMPUR, Nov 20 (Reuters) - Malaysian palm oil futures slipped on Thursday, snapping five consecutive sessions of gains, as weaker rival soyoil weighed on the market.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange slid 63 ringgit, or 1.49%, to 4,163 ringgit ($1,000.24) a metric ton by the midday break.

The contract traded lower, tracking weakness in the soybean oil market, amid talks that the United States could delay proposed cuts to imported biofuel incentives, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

President Donald Trump's administration is considering delaying for one or two years its proposed cuts in incentives for imported biofuels amid pressure from U.S. refiners who argue the move could raise costs and tighten fuel supplies.

Dalian's most-active soyoil contract DBYcv1 fell 1.53%, while the palm oil contract DCPcv1 shed 1.76%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.74%.

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

Oil prices edged higher, recovering from losses in the previous session, as markets assessed the latest U.S. proposals to end the war in Ukraine and prepared for a U.S. deadline to cease operations with two major Russian oil firms. O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit MYR=, palm's currency of trade, weakened 0.34% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

Palm oil may fall to 4,102 ringgit per metric ton, as a bounce from around 4,076 ringgit may have completed, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.1620 ringgit)