JAKARTA, Dec 6 (Reuters) -Malaysian palm oil futures declined on Friday on easing supply concerns, as weather improved in the world's second-largest producer Malaysia, although the contract wasset to rise fora second week.
The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange lost 20 ringgit, or 0.39%, to 5,115 ringgit ($1,157.24) a metric ton by the midday break.
The contract has risen 1.89% so far this week.
"The rains have stopped at least for now, thus the damage is not widespread," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Devastating flood hit Malaysia last week following heavy rain in late November and the country's meteorological department earlier this week forecast monsoon surge from Dec. 8 to 14, which could bring continuous rain to the east coast of Malaysia's peninsular and parts of Sabah and Sarawak states on Borneo island.
The contract is alsoeasing as demand - especially for January - is seenminimal, he added, while market participants are waitingfor more direction from Malaysian Palm Oil Board data on November performance.
Dalian's most-active soyoil contract DBYcv1 was down 0.28%, while its palm oil contract DCPcv1 fell 0.8%. Soyoil slipped 0.09% at the Chicago Board of Trade.
Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Malaysia's palm oil inventories are expected to have fallen in November for a second consecutive month as torrential rains disrupted production, a Reuters survey showed.
Palm oil FCPOc3 is expected to gain further into the 5,202-5,242 ringgit per ton range, driven by a wave 5, Reuters technical analyst Wang Tao said.
