12/12/2012  (Reuters) - Malaysian palm oil futures ended lower on Tuesday, as traders priced in record stocks in the world's second-largest producer of the edible oil.

Malaysia's palm oil inventory level climbed for the fourth straight month to a record 2.56 million tonnes in November, weighing on futures that were headed for the worst annual performance since the 2008 financial crisis.

"We view the latest inventory data negatively as high stocks should keep crude palm oil prices at distressed levels of below 2,500 ringgit per tonne for an extended period well into 2013," Alan Lim Seong Chun, research analyst with Malaysia's Kenanga Investment Bank, said in a note to clients.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange lost 0.9 percent to close at 2,292 ringgit ($750) per tonne. Prices traded in a range of 2,283 to 2,324 ringgit.

Total traded volumes stood at 38,386 lots of 25 tonnes each, much higher than the usual 25,000 lots.

On the weather front, an absence of El Nino disrupting production could lead to even higher palm oil supplies and pile more pressure on record high stocks, while the latest export data also failed to lift investor sentiment.

Malaysian exports fell 2.8 percent for the first 10 days of December from a month ago, said cargo surveyor Intertek Testing Services. Another cargo surveyor, Societe Generale de Surveillance, reported a 0.4 percent rise for the same period.

But traders are hoping for higher shipments in the next few weeks as planters rush to finish their annual tax-free export quota that expires the end of December and as Chinese buyers stock up before the implementation of a stricter quality requirement on edible oil from next year.

In a bullish sign for palm oil, Brent crude oil rose to around $108 a barrel on Tuesday as a slightly weaker dollar and Middle East unrest supported prices, but stalled fiscal talks in the United States capped gains.

In other vegetable oil markets, U.S. soyoil for January delivery fell 0.3 percent in late Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 0.1 percent lower.    

  Palm, soy and crude oil prices at 1009 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      DEC2    2105   -16.00    2105    2110      27
  MY PALM OIL      JAN3    2190   -31.00    2185    2230    2110
  MY PALM OIL      FEB3    2292   -21.00    2283    2324   12647
  CHINA PALM OLEIN MAY3    6788   -70.00    6788    6896  823078
  CHINA SOYOIL     MAY3    8740   -12.00    8740    8834  547628
  CBOT SOY OIL     JAN3   50.99    -0.15   50.91   51.26    5173
  NYMEX CRUDE      JAN3   85.89    +0.33   85.37   85.92   14826

  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 Malaysian ringgit)