Palm oil falls on slowing exports

MUMBAI, Dec 12 (Reuters): Malaysian palm oil futures gave up opening gains on Tuesday to trade lower on slowing exports, with the market eagerly awaiting inventory data for the end of November.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 17 ringgit, or 0.45 per cent, to 3,724 ringgit ($795.39) by the midday break.

The market fell due to weak export numbers in the first 10 days of December and the weakness in soyoil futures, said a Mumbai-based dealer with a global trade house.

Exports of Malaysian palm oil products for Dec. 1-10 fell 4.1 per cent to 7.4 per cent from the Nov. 1-10 period, cargo surveyors said.

"The market was eagerly awaiting production and export data to gauge stock levels. With production growth slowing and stocks falling, this development will provide support to the market," the dealer said.

Malaysia's palm oil stocks at the end of November fell 1.09 per cent from the previous month to 2.42 million metric tons, data from the Malaysian Palm Oil Board (MPOB) showed after the market was closed for the midday break.

Soyoil futures on the Chicago Board of Trade fell 0.1 per cent. 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 zone of 3,775-3,781 ringgit per ton, and rise into a range of 3,813-3,835 ringgit, Reuters' technical analyst Wang Tao said.