22/11/2012 (Reuters) - Malaysian palm oil futures eased on Wednesday, inching down for a second straight session as lacklustre export data fuelled traders' concerns over a slowdown in demand.     

Malaysian palm exports for Nov. 1-20 fell 3.3 percent to 1.02 million tonnes from a month ago, cargo surveyor Intertek Testing Services said on Tuesday. Another surveyor, Societe Generale de Surveillance, reported a drop of 3.8 percent in shipments for the same period. 

Although Chinese demand continued to grow on festival buying ahead of the Lunar New Year and as buyers stocked up before stricter quality measures take effect in 2013, palm oil prices were weighed down by much weaker Malaysian shipments to Europe and India.

"The market is fundamentally bearish and prices will further correct before positive sentiment enters the market," said a trader with a Malaysian commodities brokerage.

"A correction towards 2,350 to 2,400 ringgit per tonne should be healthy for both consumers and packers."

The benchmark February contract on the Bursa Malaysia Derivatives Exchange fell 0.6 percent to close at 2,443 ringgit ($798) per tonne. Prices on Tuesday had risen to 2,485 ringgit, the highest since Nov. 2.

Total traded volumes surged to 29,018 lots of 25 tonnes each, compared to the usual 25,000 lots.   

European demand for palm oil could take a further hit after international lenders failed for a second week running to agree on how to get Greece's debt down to a sustainable level, suggesting the debt crisis could still drag on.

However, in a bullish sign for palm oil, Brent crude rose above $110 a barrel on Wednesday, supported by fears of supply disruption from the Middle East, as clashes raged between Palestinians and Israelis despite overnight truce talks.

In other vegetable oil markets, U.S. soyoil for December delivery fell 0.3 percent in late Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 0.8 percent higher. 

Traders also noted news on Olam International Limited, a Singapore commodities trader.

Muddy Waters stepped up its battle against Olam with a letter criticising the firm's debt and cash burn. But Olam shares rebounded on Wednesday, in a sign that investors were relieved that Muddy Waters had yet to publish a long, detailed report on the company as it has with other targets.

  Palm, soy and crude oil prices at 1002 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      DEC2    2340   -29.00    2338    2360     552
  MY PALM OIL      JAN3    2402   -24.00    2394    2426    6728
  MY PALM OIL      FEB3    2443   -14.00    2427    2460   14038
  CHINA PALM OLEIN MAY3    6782   +24.00    6734    6798  455950
  CHINA SOYOIL     MAY3    8538   +64.00    8484    8548  644404
  CBOT SOY OIL     DEC2   48.20    -0.12   47.85   48.39    5876
  NYMEX CRUDE      JAN3   87.21    +0.47   86.65   87.40   32446

  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=3.07 ringgit)