VEGOILS-Palm oil falls more than 3% at open as rival oils, crude slump

JAKARTA, March 10 (Reuters) - Malaysian palm oil futures fell more than 3% early on Tuesday, after the biggest jump in three years in the previous session, tracking rival edible oils in Dalian and Chicago markets and crude.

The benchmark palm oil contract FCPOc3 for May delivery on the Bursa Malaysia Derivatives Exchange fell 165 ringgit, or 3.61%, to 4,402 ringgit ($1,120.96) a metric ton by 0234 GMT.

FUNDAMENTALS

Dalian's most-active soyoil contract DBYcv1 lost 3.19%, while its palm oil contract DCPcv1 fell 2.61%. Soyoil on the Chicago Board of Trade BOcv1 declined 1.21%.

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

Oil prices fell on Tuesday after U.S. President Donald Trump predicted the war in the Middle East could end soon.

Lower crude oil futures make palm a less attractive option for biodiesel feedstock.

The Malaysian Palm Oil Board is scheduled to release key monthly data later today.

Malaysia's palm oil stocks are expected to fall for a second consecutive month in February, to a four-month low, as seasonal output declines outweighed slower exports, a Reuters survey showed.

Rising crude oil prices and higher freight rates, driven by the Middle East conflict, could boost demand for palm oil from the biodiesel sector and for food use, as Asian buyers seek prompt shipments.

Indonesia may revive a plan to launch a mandatory B50 grade of palm oil-based biodiesel in the middle of this year due to surging crude oil prices.

Malaysian ringgit, the contract's currency of trade, strengthened 0.76% against the U.S. dollar, making palm oil more expensive for foreign currency holders.

MARKET NEWS

Asian stocks rallied and oil prices plunged at the start of trading on Tuesday, following a volatile session for markets overnight after U.S. President Donald Trump declared the Middle East war could be "over soon." MKTS/GLOB

DATA/EVENTS

1400 US Existing Home Sales Feb

China Exports, Imports YY Feb

China Trade Balance USD Feb

($1 = 3.9270 ringgit)