VEGOILS-Palm oil edges down as Europe concerns weigh

* Lingering euro zone debt crisis dampen sentiment
* Losses limited by Malaysia's palm May stocks at 13-month
low
* Palm oil biased to fall below 2,925 ringgit -technicals

(Updates prices)
By Chew Yee Kiat
SINGAPORE, June 12 (Reuters) - Malaysian palm oil futures
closed lower on Tuesday, as renewed fears over the euro zone
debt crisis weighed on investor sentiment and the broader
financial markets, although losses were limited by lower palm
oil stocks.
Palm oil, along with other commodities such as crude oil and
soybean oil, gained on Monday on news that euro zone finance
ministers approved a $125 billion rescue package for struggling
Spanish banks.
But investors feared that the bailout would not be
sufficient to solve the crisis and the focus has now shifted to
the Greek elections on June 17 that could lead to the nation's
exit from the currency bloc.
"A key factor contributing to the price downtrend is the
renewed euro zone debt crisis and uncertain global economic
outlook, which have dampened sentiments as well as raising the
prospect of lower demand for commodities, including vegetable
oils," said Malaysia's Affin Investment Bank in a research note.
Benchmark August palm oil futures on the Bursa
Malaysia Derivatives Exchange lost 0.8 percent to close at 2,965
ringgit ($933) per tonne.
Traded volumes stood at 26,461 lots of 25 tonnes each, just
slightly higher than the usual 25,000 lots.
Malaysian palm oil stocks were at a 13-month low in May, and
that has helped cut some losses.
Malaysian palm oil exports for the first 10 days of June
fell 6.6 percent, said cargo surveyor Intertek Testing Services,
going against market expectations of a stronger demand ahead of
the Muslim fasting month starting in mid-July.
Another cargo surveyor Societe Generale de Surveillance
reported a slight 1.8 percent increase for exports for the same
period.
Traders are eyeing a supply-demand report from the U.S.
Department of Agriculture (USDA) due later in the day that could
show tighter soybean supply and lend support to palm oil.
Industry players are also watching for any volatility in
price movement as this is the first time that the report will be
released during active Chicago futures trading hours.

On the technicals front, palm oil is biased to fall below
2,925 ringgit per tonne, as the rebound from its June 4 low has
completed, said Reuters market analyst Wang Tao.
Crude oil futures fell below $98 a barrel on Tuesday,
extending losses due to fears that the euro zone debt crisis
will worsen and hurt the global economy, threatening growth in
oil demand.
In other vegetable oil markets, U.S. soyoil for July
delivery gained 0.3 percent in late Asian trade while the most
active Jan 2013 soyoil contract on the Dalian commodity
exchange closed 0.3 percent lower.

Palm, soy and crude oil prices at 1006 GMT

Contract Month Last Change Low High Volume
MY PALM OIL JUN2 2935 -25.00 2900 2939 55
MY PALM OIL JUL2 2959 -30.00 2950 2981 917
MY PALM OIL AUG2 2965 -24.00 2951 2985 15061
CHINA PALM OLEIN JAN3 7862 -40.00 7816 7866 175768
CHINA SOYOIL JAN3 9318 -10.00 9260 9320 427918
CBOT SOY OIL JUL2 49.84 +0.10 49.44 50.15 10676
NYMEX CRUDE JUL2 82.32 -0.38 81.07 82.38 36227

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
Crude in U.S. dollars per barrel
($1=3.179 Malaysian ringgit)

(Editing by Himani Sarkar)