KUALA LUMPUR, Nov 21 (Reuters) -Malaysian palm oil futures fell more than 3% in early trade on Thursday, tracking weakness in rival vegetable oils.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange slid 151 ringgit, or 3.14%, to 4,664 ringgit ($1,044.57) a metric ton.
The contract declined 2.21% in the previous session.
FUNDAMENTALS
* Dalian's most-active soyoil contract DBYcv1 fell 1.41%, while its palm oil contract DCPcv1 shed 3.52%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.53%.
* Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
* Oil prices edged higher, due to supply concerns triggered by escalating geopolitical tensions amid the ongoing war between Russia and Ukraine.
* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
* The ringgit MYR=, palm's currency of trade, strengthened 0.16 % against the dollar, making the commodity more expensive for buyers holding foreign currencies.
* U.S. soybean futures hit a two-week low on Wednesday and fell more than 3% on expectations of plentiful South American soy harvests this year along with uncertainty about demand for soy-based biodiesel fuel, analysts said.
* Palm oil may break support at 4,732 ringgit per metric ton, and fall into 4,647 ringgit to 4,679 ringgit range, Reuters technical analyst Wang Tao said.
MARKET NEWS
* Asian equities fell after AI darling Nvidia disappointed investors with a subdued revenue forecast, while the dollar firmed and bitcoin hit a record high in anticipation of U.S. President-elect Donald Trump's proposed policies.
