VEGOILS-Palm falls for third day on cheaper rivals, India import tax move

(Adds midday prices)

SINGAPORE, June 18 (Reuters) - Malaysian palm oil futures fell for a third straight session on Friday, hitting their lowest since early February, as rival U.S. soyoil slumped overnight and top buyer India put off plans to cut import taxes.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slid 92 ringgit, or 2.7%, to 3,285 ringgit ($793.67) a tonne by the midday break.

Palm has declined 10.3% so far in the week, adding to the previous week’s more than 11% slump.

“Palm is down because of CBOT (Chicago Board of Trade) soyoil’s limit fall last night,” said a Kuala Lumpur-based trader, referring to Friday’s drop.

U.S. soybean futures were on course for their biggest weekly drop in nearly seven years, weighed down by forecasts for crop-friendly weather and cooler temperatures in the Midwest crop belt. The soybean oil contract was up 0.4% after a 9.2% drop on Thursday.

Both soybean oil and palm oil on the Dalian Commodity Exchange dropped 3%.

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

Prices were also weighed down by India’s move to put on hold a proposal to reduce import taxes on edible oils.

Palm oil may fall to 3,195 ringgit per tonne, driven by a wave C, Reuters analyst Wang Tao said. ($1 = 4.1390 ringgit)

Reporting by Fathin Ungku; Editing by Subhranshu Sahu