Updates midday prices and adds trader's comment

KUALA LUMPUR, Dec 17 (Reuters) -Malaysian palm oil futures fell for a third consecutive session on Tuesday, weighed down by sluggish demand from key destination markets.

The Bursa Malaysia Derivatives Exchange's benchmark contract FCPOc3 slid 67 ringgit, or 1.41%, to 4,691 ringgit ($1,055.11) a metric ton by the midday break.

Futures were pressured by lower overnight Chicago soyoil futures and lack of fresh demand from destination markets amid deep negative import margins, especially in India, said Anilkumar Bagani, commodity research head at Mumbai-based Sunvin group.

Paramalingam Supramaniam, director at Selangor-based brokerage firm Pelindung Bestari, said prices plunged following a massive long liquidation by funds, a trend that is believed will continue for an extended period.

"Until we see a potential return of bona fide buying interest in the cash market, the bumper crop in the U.S added with book closing for the year end, the market will continue to remain under selling pressure.

"Fundamentals such as weaker production and the possibility of end stocks plummeting below 1.5 million metric tons by February did little to ease market sentiment," he said.

Dalian's most-active soyoil contract DBYcv1 fell 0.46%, while its palm oil contract DCPcv1 shed 1.4%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.19%.

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

The ringgit MYR=, palm's currency of trade, strengthened 0.09% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Oil prices eased further on Tuesday as China's economic data renewed demand concerns, while investors remained cautious ahead of the U.S. Federal Reserve's interest rate decision. O/R

Palm oil may break support at 4,701 ringgit per metric ton and fall towards 4,626 ringgit, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.4460 ringgit)

Reporting by Ashley Tang; Editing by Mrigank Dhaniwala and Varun H K

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Vegetable oils OILS/ASIA1
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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