VEGOILS-Palm oil drops to over 11-mth low on rising stocks

* Prices fall to 2,767 ringgit, lowest since Oct 2011
* Futures on track for 5.7 pct weekly loss, worst since
March 2011
* Malaysia's palm oil exports up 13-15 pct for Sept. 1-20
m/m
* Palm oil may drop to 2,719 ringgit -technicals

(Updates prices)
By Chew Yee Kiat
SINGAPORE, Sept 21 (Reuters) - Malaysian palm oil futures
dropped on Friday to their lowest in more than 11 months,
posting their worst week since March last year as rising
inventories and overnight losses in U.S. soybeans weighed on
prices.
The brisk pace of the U.S. soybean harvest and global
economic concerns dragged down palm oil prices, which have
already come under pressure due to worries inventory levels in
key producer Malaysia could climb above 2.2 million tonnes in
September, which would be the highest level seen this year.
"The overseas market was down yesterday and this morning the
Dalian market was down, so the futures market is under
tremendous pressure on long liquidation and speculative
short-selling," said a trader with a foreign commodities
brokerage in Malaysia.
"Technicals also don't look good as prices broke below 2,800
ringgit with immediate support at 2,754 ringgit."
At the close, the benchmark December contract on
the Bursa Malaysia Derivatives Exchange had lost 2 percent to
2,763 ringgit ($905) per tonne, slightly above the intraday low
at 2,755 ringgit, a level unseen since Oct. 6.
The prices broke below the 2,800-ringgit mark for the first
time this year and posted a 5.9 percent loss this week.
Total traded volume stood at 37,030 lots of 25 tonnes each,
much higher than the usual 25,000 tonnes.
Technicals continued to look bearish with Reuters market
analyst Wang Tao saying palm oil would keep falling to 2,719
ringgit per tonne based on a wave analysis.
Latest cargo surveyor data pointed to rising exports but
traders said the increase was not enough to offset strong
production, which could push September stocks even higher than
the 10-month high of 2.1 million tonnes seen in August.
Cargo surveyor Intertek Testing said export shipments rose
almost 15 percent during Sept. 1-20 over the same period a month
ago, while another cargo surveyor, Societe Generale de
Surveillance, reported an almost 13 percent increase from a
month ago.
In a bullish sign for palm oil, Brent crude rose towards
$111 on Friday, extending its gains from a 1-1/2 month low hit
in the previous session, as Libya's precarious security
situation and lower North Sea production stoked supply fears.

In other vegetable oil markets, U.S. soyoil for December
delivery lost 0.2 percent. The most active January 2013
soyoil contract on the Dalian Commodity Exchange had
closed 1.5 percent down.
Chicago Board of Trade November soybeans edged up,
after dropping 3 percent in the previous session.

Palm, soy and crude oil prices at 1006 GMT

Contract Month Last Change Low High Volume
MY PALM OIL OCT2 2593 -82.00 2556 2629 0
MY PALM OIL NOV2 2693 -82.00 2689 2759 0
MY PALM OIL DEC2 2763 -57.00 2755 2815 0
CHINA PALM OLEIN JAN3 7614 -182.00 7606 7730 320744
CHINA SOYOIL JAN3 9738 -146.00 9720 9810 510238
CBOT SOY OIL DEC2 54.92 -0.13 54.82 55.46 8249
NYMEX CRUDE NOV2 92.96 +0.54 92.80 93.48 22842

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=3.051 ringgit)

(Editing by Clarence Fernandez)
(chew.yeekiat@thomsonreuters.com; +65 6870 3925; Reuters
Messaging: chew.yeekiat.thomsonreuters.com@thomsonreuters.net)