27/09/2012 (Reuters) - Malaysian palm oil futures ended lower on Wednesday, as investors stayed cautious on rising stocks and renewed fears about a slowing global economy on Spain's financing woes.

Palm oil stocks in No.2 producer Malaysia look set to climb higher on strong production, and while exports rose from a month ago, traders said the increase was not enough to bring down high inventory levels, which hit a 10-month high in August.

Malaysian palm oil exports rose 11 percent for the first 25 days of September from a month ago, cargo surveyor data showed on Tuesday. 

"The export numbers are a non-factor now -- the first 25 days is not that fantastic. We need bigger exports coming in to reduce stocks," said a trader with a foreign commodities brokerage in Malaysia.

"I believe stocks cannot be reduced in one or two months' time, it will take longer, probably until the end of the year, to be reduced further, then it will help to suppress the drop in prices."

The benchmark December contract on the Bursa Malaysia Derivatives Exchange lost 1.8 percent to close at 2,621 ringgit ($851) per tonne.

Futures hit a two-year low on Monday and have lost more than 17 percent so far this year, on track for their worst yearly performance since 2008.

Total traded volumes stood at 34,447 lots of 25 tonnes each, higher than the usual 25,000 lots.

Technicals showed that over the next three months, palm oil would drop into a support zone of 2,387 to 2,415 ringgit per tonne, a break below which will open the way towards a range of 1,899 to 1,952 ringgit, said Reuters analyst Wang Tao.

Cautious sentiment dominates as the markets are closely watching Madrid's ability to control its finances, with ballooning regional debts crippling the government's refinancing efforts.

The country is also subject to a ratings review by Moody's Investors Service.    

Also weighing on palm oil, Brent crude oil fell below $110 on Wednesday, weighed down by a stronger dollar, worries over growth and the euro zone debt crisis as Greece faced its biggest anti-austerity strike for months.

In other vegetable oil markets, U.S. soyoil for December delivery lost 1.4 percent in late Asian trade. The most active January 2013 soyoil contract on the Dalian Commodity Exchange also edged down 1.8 percent after touching its lowest level since July 27.   

  Palm, soy and crude oil prices at 1008 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      OCT2    2480   -59.00    2465    2482     344
  MY PALM OIL      NOV2    2545   -60.00    2537    2572    3170
  MY PALM OIL      DEC2    2621   -48.00    2603    2642   16758
  CHINA PALM OLEIN JAN3    7230   -54.00    7222    7318  388272
  CHINA SOYOIL     JAN3    9348  -174.00    9348    9490  652402
  CBOT SOY OIL     DEC2   52.74    -0.79   52.72   53.69   10318
  NYMEX CRUDE      NOV2   90.72    -0.65   90.33   91.34   23628

  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