Updates midday prices and adds trader's comment

KUALA LUMPUR, Nov 18 (Reuters) -Malaysian palm oil futures traded lower on Monday, weighed by weakness in Dalian palm olein.

The benchmark palm oil contract FCPOc3 for February delivery on the Bursa Malaysia Derivatives Exchange slid 71 ringgit, or 1.41%, to 4,982 ringgit ($1,115.79) a metric ton at the midday break.

The contract rose 2.5% in the previous session.

The weakness seen in the palm market today stems from spread adjustment against Dalian’s palm olein, a Kuala Lumpur-based trader said.

Dalian's most-active soyoil contract DBYcv1 fell 1.35%, while its palm oil contract DCPcv1 lost 0.84%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.15%.

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

The ringgit MYR=, palm's currency of trade, strengthened 0.07% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Oil prices edged up after fighting between Russia and Ukraine intensified over the weekend, although concerns about fuel demand in China, the world's second-largest consumer, and forecasts of a global oil surplus weighed on markets. O/R

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

Chicago soy futures rose for a second session on concerns that China's removal of export incentives for used cooking oil, a low-cost feedstock that many U.S. biofuels makers use instead of domestically produced soyoil, could curtail imports.

Palm oil may revisit its Nov. 11 high of 5,202 ringgit per metric ton, as the strong gain from the Nov. 14 low of 4,826 ringgit suggests a resumption of the uptrend, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.4650 ringgit)

Reporting by Ashley Tang; Editing by Subhranshu Sahu and Mrigank Dhaniwala

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