Update prices, add analyst comment

JAKARTA, Oct 8 (Reuters) -Malaysian palm oil futures fell on Tuesday on profit-taking, whiledeclines in Chicago soyoil and crude oil prices added further pressure to the benchmark contract.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange was down 1.27%at 4,288 ringgit ($1,000.23) a metric ton by midday.

"Crude palm oil futures are down on profit-taking on the back of lacklustre Dalian performance while waiting for a further lead," a Kuala Lumpur-based trader said, adding that the Dalian contract needs about 800 points to catch up to the benchmark.

The benchmark palm oilcontract had hit its highest closing in six months at 4,349 ringgit in the previous session and has gained 8.7% so far in October.

Dalian Commodity Exchange's soyoil contract DBYcv1 rose 0.79% while its palm oil contract DCPcv1 was up 2.58% as the market resumed trading after a week-long holiday break. Soyoil prices on the Chicago Board of Trade BOc2 slipped 1.73%.

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

Crude oil prices fell on Tuesdayas traders booked profits after prices rallied to their highest in over a month in the previous session amid fears that the Middle East could be on the brink of a region-wide war. O/R

Brent crude futures LCOc1 for December were down 1.5%at $79.72 a barrel by 0551GMT. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Palm oil may test resistance at 4,432 ringgit per metric ton, a break above could open the way towards the range of 4,518 ringgit to 4,571 ringgit, said Reuters technical analyst Wang Tao. TECH/C

($1 = 4.2870 ringgit)

Reporting by Bernadette Christina; Editing by Varun H K and Eileen Soreng

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