* Palm oil to test support at 2,353 ringgit - technicals
* Traders eye 2013 price forecasts at Bali conference on
* Indonesia palm oil output to climb 7 pct to 27 mln tonnes
* India oilseed industry pushes for hike in import taxes -
By Chew Yee Kiat
SINGAPORE, Nov 29 Malaysian palm oil futures
fell to a 2-week low on Thursday, extending losses for a third
straight session as weak sentiment dominated the market with
investors worrying about record high stocks.
Traders are looking out for Malaysia's palm products export
figures for November due on Friday, with expectations of a
slight decline compared with a month ago. The latest data for
the first 25 days of the month showed a drop of less than 2
A lower export demand may push Malaysian inventory levels
slightly higher in November despite slowing production.
"The market is still under pressure. Exports should be down
by more than 1.5 percent for the month," said a trader with a
foreign commodities brokerage in Malaysia.
"People are asking whether production can neutralise
exports, and I think it's unlikely that stocks will go up
sharply," he added.
At the close, the benchmark February contract on
the Bursa Malaysia Derivatives Exchange fell 0.3 percent to
2,386 ringgit ($782) per tonne. Prices earlier touched a low of
2,367 ringgit, a level last seen on Nov. 14.
Technicals suggested palm oil is expected to test a support
at 2,353 ringgit, a break below which will lead to a further
drop to 2,288 ringgit.
Total traded volumes stood at 24,134 lots of 25 tonnes each,
thinner than the usual 25,000 lots, as some traders remained on
the sidelines ahead of top analysts presenting their price
forecasts for 2013 at the Indonesian Palm Oil Association's
two-day conference in Bali on Thursday and Friday.
Palm oil output in the world's biggest producer Indonesia is
expected to climb 7 percent next year to 27 million tonnes, a
top industry association official said on the sidelines of the
conference, as three years of acreage expansion efforts bear
Two trading sources also told Reuters at the conference that
India's oilseed industry has submitted a proposal to the
government to raise import taxes on palm oil and other edible
oils, arguing demand for local output is being hurt after a
sharp fall in prices.
In related markets, Brent crude oil rose on Thursday on
optimism that U.S. lawmakers would reach a deal on fiscal policy
and as mounting tension in the Middle East intensified supply
In other vegetable oil markets, U.S. soyoil for December
delivery gained 0.4 percent in late Asian trade. The
most-active May 2013 soybean oil contract on the Dalian
Commodity Exchange closed 0.2 percent lower.
Palm, soy and crude oil prices at 1006 GMT
Contract Month Last Change Low High Volume
MY PALM OIL DEC2 2170 +10.00 2120 2182 254
MY PALM OIL JAN3 2320 -6.00 2297 2337 3714
MY PALM OIL FEB3 2386 -8.00 2367 2406 13587
CHINA PALM OLEIN MAY3 6744 -44.00 6702 6780 649044
CHINA SOYOIL MAY3 8590 -20.00 8524 8614 699060
CBOT SOY OIL JAN3 50.58 +0.20 50.02 50.60 7902
NYMEX CRUDE JAN3 87.31 +0.82 86.55 87.38 15655
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
(Editing by Miral Fahmy and Robert Birsel)