07/11/2012 (Reuters) - Malaysian palm oil futures fell to the lowest in almost one month on Tuesday, dropping for a third straight session, as concerns over rising stockpiles and uncertainty ahead of the U.S. elections weighed on prices.

Inventory levels in Malaysia - the world's No.2 palm oil producer - may climb to 2.67 million tonnes in October, surpassing previous month's record at 2.48 million tonnes, a Reuters survey showed on Tuesday.

Industry regulator the Malaysian Palm Oil Board (MPOB) will issue October stocks data on the coming Monday.

"Everybody is looking at the MPOB number that is expected to reach 2.7 million tonnes, and the market is reacting badly to that," said James Ratnam, an analyst with Malaysia's TA Securities.

The benchmark January contract on the Bursa Malaysia Derivatives Exchange fell 1.6 percent to close at 2,372 ringgit ($775) per tonne, just off its intraday low at 2,370 ringgit, the weakest since Oct. 8.

Total traded volumes stood at 34,020 lots of 25 tonnes each, higher than the usual 25,000 lots.

Prices had edged up briefly before the midday break as an almost 5 percent drop over the last two trading sessions lured buyers. Worries that year-end floods in Malaysia could hit supplies also checked losses.

"So far I have not heard of any big impact from floods. This is still a very early stage. The flood usually happens at the end of the year, and depending on the strength, it could disrupt supply and support prices."

Traders also remained cautious ahead of the U.S. elections.

President Barack Obama and Republican challenger Mitt Romney were essentially deadlocked on election eve, polls show, raising concerns of a cliffhanger delaying the outcome and roiling markets, as it did during the extended presidential battle in 2000. 

Technicals showed palm oil could stage a rebound to 2,470 ringgit as a fall from the Oct. 25 high of 2,615 ringgit has temporarily ended, said Reuters market analyst Wang Tao. 

In related markets, Brent crude held over $107 per barrel on Tuesday, as uncertainty ahead of the U.S. elections and renewed worries about Greece and the euro zone crisis headed traders' concerns.

Other vegetable oil markets recovered from the previous day's losses. U.S. soyoil for December delivery edged up 0.9 percent in late Asian trade, while the most active May 2013 soybean oil contract on the Dalian Commodity Exchange inched up 0.1 percent. 

  Palm, soy and crude oil prices at 1006 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      NOV2    2280   -20.00    2280    2310     330
  MY PALM OIL      DEC2    2325   -27.00    2315    2358    1516
  MY PALM OIL      JAN3    2372   -39.00    2370    2421   17860
  CHINA PALM OLEIN MAY3    6838    -4.00    6786    6888  412430
  CHINA SOYOIL     MAY3    8762   +12.00    8712    8808  586256
  CBOT SOY OIL     DEC2   48.73    +0.41   48.35   48.98    5481
  NYMEX CRUDE      DEC2   85.92    +0.27   85.42   85.98   15900

  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 = 3.06 ringgit)