Updates with midday prices, add quotes

By Mei Mei Chu

KUALA LUMPUR, March 29 (Reuters) -Malaysian palm futures eased on Wednesday after rising for two straight sessions, as a report highlighting the vegetable oil's fading premium against rival oils weighed on prices.

Palm oil's rare premium over rival rapeseed oil and sunflower oil is likely to be short-lived and should slip into a discount once top producer Indonesia eases export curbs after Ramadan, industry participants told Reuters on Tuesday.

The benchmark palm oil contract FCPOc3 for June delivery on the Bursa Malaysia Derivatives Exchange slid 15 ringgit, or 0.41%, to 3,672 ringgit ($834.17) a tonne by the midday break. It gained 5% in the past two sessions.

Palm opened higher on Wednesday, borrowing strength from soybean oil and Dalian, but the market dropped sharply with heavy selling after breaking below 3,700 ringgit, a Kuala Lumpur-based trader said.

Dalian's most-active soyoil contract DBYcv1 rose 0.8%, while its palm oil contract DCPcv1 gained 0.5%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.7%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Top producer Indonesia plans to set its crude palm oil reference price for the April 1-15 period at $898.29 per tonne, Musdhalifah Machmud, a senior official at the Coordinating Ministry of Economic Affairs, said on Tuesday.

Production in the world's second-largest producer is expected to decline after a miller's association estimated a 22.9% decline in output during March 1-25, analysts said.

Exports from Malaysia during March 1-25 jumped between 11.4% and 19.8% from the same period in February, according to cargo surveyors' data this week. nAPN0UGG4PnAZN14R8W0nAZN14R8W0

Palm oil may rise into a range of 3,773 ringgit to 3,810 ringgit per tonne to cover a gap forming on March 22, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.4020 ringgit)

Reporting by Mei Mei Chu; Editing by Savio D'Souza and Uttaresh Venkateshwaran

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