14.07.2021 (www.nasdaq.com) - By Mei Mei Chu

KUALA LUMPUR, July 14 (Reuters) - Malaysian palm oil futures dipped on Wednesday after hitting a five-week high, although concerns over slow output growth offered some support.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange slid 37 ringgit, or 0.93%, to 3,940 ringgit ($938.32) a tonne by the midday break. Earlier in the session, it briefly hit its highest level since June 9 after Tuesday's near 3% jump.

Lack of manpower and coronavirus-led lockdown restrictions are taking a toll on output, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Plantations in Malaysia are entering the seasonal higher production period, but analysts anticipate a small uptick in July output as labour shortage continues to hamper harvesting.

"This explains the lack of crude palm oil sellers in the physical market today," he said, adding that prices were expected to remain steady despite intermittent profit-taking activities.

Traders now await July 1-15 export data from cargo surveyors, scheduled for Thursday.

The ringgit MYR=, palm's currency of trade, weakened 0.19% against the dollar, making the commodity cheaper for holders of foreign currency.

The ringgit is poised for more losses as record coronavirus infections, movement restrictions, a cut to Malaysia's 2021 GDP forecast, political dysfunction and a broadly stronger U.S. dollar take a toll, a Reuters market analyst said.

Dalian's most-active soyoil contract DBYcv1 gained 0.6%, while its palm oil contract DCPcv1 fell 0.3%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.2%.

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

Palm oil may break a resistance at 4,009 ringgit and rise to 4,105 ringgit, as the uptrend from 3,251 ringgit has extended, Reuters technical analyst Wang Tao said. TECH/C

($1 = 4.1990 ringgit)

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(Reporting by Mei Mei Chu; Editing by Uttaresh.V and Subhranshu Sahu)