Update prices, adds analyst comment

JAKARTA, May 18 (Reuters) - Malaysian palm oil futures rose more than 2% on Monday and were headed for their biggest daily gain since March 30, underpinned by strength in Dalian palm oil, Chicago soyoil and crude oil, while a weaker ringgit also lent support to prices.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange gained 93 ringgit, or 2.1%, to 4,530 ringgit ($1,139.62) a metric ton by the midday break, rising for a second straight session.

The contract fell 1.89% last week in its third consecutive weekly drop.

Strength in crude oil, good gains in Chicago soyoil, and a weaker ringgit lifted the market, said a Kuala Lumpur-based trader, adding that a technical rebound from recent falls lent further support.

Oil prices extended gains as efforts to end the Iran war appeared to have stalled, after a nuclear power plant in the United Arab Emirates came under attack and as U.S. President Donald Trump is expected to discuss military options on Iran. O/R

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

Dalian's most-active soyoil contract DBYcv1 was down 0.07%, while its palm oil contract DCPcv1 gained 1.26%. Soyoil prices on the Chicago Board of Trade BOc2 were up 1.14%.

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

Malaysia has lowered its June crude palm oil reference price to a level that maintains the export duty at 10%.

Malaysian palm oil exports for the May 1-15 period were expected to have fallen by 16.5% from a month earlier, data from inspection company AmSpec Agri Malaysia showed.

The ringgit MYR=, palm's currency of trade, weakened 0.71% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

($1 = 3.9750 ringgit)