KUALA LUMPUR, Dec 18 (Reuters) - Malaysian crude palm oil 
futures fell 0.7 percent on Tuesday as investors cashed in on the 
previous session's strong gains amid weaknesses in crude and 
soyoil markets, traders said. 
    But the prospect of recent rains and floods further affecting 
harvest and transport of the vegetable oil prevented losses from 
deepening. 
    Palm oil, used in products ranging from sun tan lotion and 
margarine to biofuel, is just 3.7 percent off a record high of 
3,068 ringgit hit in November. 
    The benchmark March contract <KPOH8> on the Bursa Malaysia 
Derivatives Exchange fell 21 ringgit to 2,954 ringgit ($883) a 
tonne by the end of the morning session. 
    "The market was overbought yesterday and the factor of crude 
and soyoil was a catalyst for profit-taking," said a senior 
dealer with a foreign commodities trading firm. 
    "However, the main issue is the wet weather, which is 
preventing palm oil from reaching the buyers and there will be a 
lot of unsatisfied orders and demand." 
    Other traded months fell between 4 and 26 ringgit <0#KPO:>. 
Overall trade halved to 2,129 lots of 25 tonnes each from around 
5,000 lots that usually change hands by the midday break. 
    Floods in Malaysia's key palm growing regions are likely to 
reduce December crude palm oil output, the chairman of Malaysian 
Palm Oil Board said on Tuesday. 
    "I think December production is going to be down. At this 
stage it is difficult to say how much but the estimate for 2007 
production is 15.5 to 15.7 million tonnes," Sabri Ahmad told 
Reuters. [ID:nKLR203885] 
    Floods in Malaysia have left more than 24,000 homeless and 
cut off roads in several states, including central Pahang state 
and Johor in the south, which are key palm oil producing areas. 
More rain is expected in the coming days, local media reported. 
    UNSATISFIED DEMAND? 
    Some traders said weaker December production will keep palm 
oil prices at a premium as buyers scramble to lock in supplies. 
But other traders say a build-up in stocks in November meant 
there was ample supply to meet demand. 
    "It is a good thing that November end-stock was at a record 
high. At most, we will see a draw-down in reserves of around half 
a million tonnes," said an analyst with a local broker. 
    Stocks for November jumped 16.2 percent to 1.81 million 
tonnes, the Malaysian Palm Oil Board said in December. 
    Exports for Dec. 1-15 were robust with cargo surveyor 
Intertek Testing Services reporting an increase of 5.9 percent to 
728,067 tonnes from 687,539 tonnes. 
    Societe General de Surveillance saw a 11.5 percent jump to 
747,834 tonnes. 
    Oil was steady on Tuesday, after having settled lower for the 
third consecutive day on hints that OPEC could raise output when 
it meets next in February and amid continuing economic concerns. 
    Soyoil futures at the Chicago Board of Trade tracked lower 
crude on Monday, closing steady to 0.15 cent weaker, with January 
<BOF8> down 0.05 cent at 46.17 cents per pound. 
    In Malaysia's physical market, crude palm oil for December 
shipment in the southern region was quoted at 2,950/2,960 ringgit 
a tonne. Trades were done at 2,950 ringgit. 
     Palm, soy and crude oil prices at 0518 GMT 
 Contract       Last  Net chg  Settle Open  High  Low  Volume 
 PALM OIL JAN8  2941  -16.00    2957  2950  2950  2940   127 
 PALM OIL FEB8  2947  -20.00    2967  2950  2960  2940   359 
 PALM OIL MAR8  2954  -21.00    2975  2954  2965  2946  1283 
 PALM OIL APR8  2954  -26.00    2980  2955  2965  2950   349 
 CBOT soyoil*  46.11   -0.06   46.17   N/A 46.28 46.11   N/A 
 NYMEX crude** 90.72  + 0.09   90.63   N/A 90.97 90.62   N/A 
 Palm oil prices in Malaysian ringgit per tonne 
  * Soy oil in U.S. cents per pound 
 ** Crude in USD per barrel 
 ($1=3.347 ringgit) 
 (Reporting by Niluksi Koswanage; Editing by Jan Dahinten) 
 (([email protected]; +603 2333 8035; Reuters Messaging: 
[email protected])) 
 * For a table on Malaysian physical palm oil prices, including 
refined oil, Reuters Terminal users can double click on 
<OILS/MY01> or type OILS/MY01 and press "enter".  
 * To view freight rates from Peninsula Malaysia/Sumatra to 
China/, India, Pakistan and Rotterdam, please key in <OILS/ASIA1> 
and <OILS/ASIA2> and press enter, or double click between the 
brackets.  
 * Reuters Terminal users can see cash and futures edible oil 
prices by double clicking on the codes in the brackets: To go to 
the next page in the same chain, hit F12. To go back, hit F11. 
 Vegetable oils               -- <OILS/ASIA1><0#OILS-AS> 
 Malaysian palm oil           -- <OILS/MY01><0#PALMOIL-AS> 
 Malaysian palm kernel oil    -- <OILS/ASIA1><0#PALKOIL-AS> 
 Malaysian palm oil exports   -- <SGSPALM1> 
 CBOT soyoil futures          --  <0#BO:> 
 CBOT soybean futures         --  <0#S:> 
 Indian oilseeds              --  <INOIL> 
 Indian solvent               --  <SOLVENT01> 
 Daily Indian soybean/meal report  --     [SOYP/IN] 
 Daily Indian soyoil report        --     [OILSP/IN] 
 Weekly Indian vegetable oils      --     [OILS/IN] 
 Dalian Commodity Exchange         --     <DC/MENU> 
 Dalian soyoil futures             --     <0#DBY:> 
 Dalian refined palm oil futures   --     <0#DCP:> 
 Zhengzhou rapeseed oil            --     <0#CRO:> 
 Singapore JADE palm oil           --     <0#PO:> 
 Kuala Lumpur palm oil futures     --     <0#KPO:> 
 European edible oil prices/trades --     [OILS/E] 
Keywords: MALAYSIA PALM/MIDDAY