UPDATE 1-Palm drops to 2-year low on rising output, weak US soy
* Futures dragged by rising palm oil stocks * Bearish views by top analysts in conference also weigh * Palm oil drops to 2,577 ringgit, lowest since Sept. 2010 (Updates prices, adds details) SINGAPORE, Sept 24 (Reuters) - Malaysian palm oil futures tumbled on Monday to their lowest in two years, hurt by rising inventories and steep losses in U.S. soybeans on expectations of higher output. Bearish views by industry analysts at a vegetable oil conference also weighed on palm oil prices. Prices could drop to 2,600 ringgit-2,700 ringgit per tonne till the end of this year, top analyst Dorab Mistry, head of edible oil trading with Indian conglomerate Godrej Industries, said at the Globoil India conference. Other analysts at the meet expressed similar views. Prices may drop to 2,575 ringgit per tonne in the last quarter of 2012 from current levels if Brent crude oil prices come down to $95 per barrel, James Fry, chairman of commodities consultancy LMC International, said on Saturday. By 0408 GMT, the benchmark December contract on the Bursa Malaysia Derivatives Exchange had lost more than 6 percent to 2,589 ringgit ($846) per tonne, up slightly from the intraday low at 2,577 ringgit -- a level unseen since September 2010. "Prices have come to a two-year low, it's not something that's surprising. In the month of September and October, we see a higher inventory, and it's something of a seasonality factor," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore. "Last year we saw a year-low on Oct. 6, so we are quite close to that." Palm oil stocks in No.2 producer Malaysia stood at a 10-month high of 2.1 million tonnes in August, and traders said stocks could climb higher in September on strong production. Other vegetable oil markets also suffered steep losses on rising U.S. soybean output and unfavourable economic sentiment. By 0407 GMT, U.S. soyoil for December delivery had lost 2.7 percent. The most active January 2013 soyoil contract on the Dalian Commodity Exchange closed 3.2 percent lower by the midday break, after touching the lowest level since Aug. 6. Chicago soybeans slid almost 2 percent to fall below $16 a bushel for the first time since mid-August on expectations of higher U.S. output and slowing Chinese demand. Palm, soy and crude oil prices at 0406 GMT Contract Month Last Change Low High Volume MY PALM OIL OCT2 2402 -191.00 2400 2441 128 MY PALM OIL NOV2 2521 -172.00 2508 2596 2249 MY PALM OIL DEC2 2595 -168.00 2577 2695 12457 CHINA PALM OLEIN JAN3 7350 -306.00 7350 7550 303784 CHINA SOYOIL JAN3 9448 -314.00 9436 9680 658454 CBOT SOY OIL DEC2 53.35 -1.48 53.34 55.07 8865 NYMEX CRUDE NOV2 92.13 -0.76 91.78 93.18 8910 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=3.066 ringgit) (Reporting by Chew Yee Kiat; Editing by Himani Sarkar) (firstname.lastname@example.org; +65 6870 3925; Reuters Messaging: email@example.com)
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