14/12/2012 (Reuters) - Malaysian palm oil futures fell on Thursday to their lowest in more than three years, as record stocks and concerns that U.S. fiscal woes might drag on global growth spooked investors.

Despite announcements of more monetary stimulus by the U.S.Federal Reserve, traders remained cautious as sharp difference on the 2013 budget persisted between Congressional Republicans and the White House, and negotiators warned the showdown could drag on past Christmas.

Record high stocks in Malaysia, the world's No.2 palm producer, also drove palm oil futures to their third straight daily loss.

"The market looks exhausted at current levels, and some correction is anticipated. But any bounce will be limited with supply seen at record levels," a trader with a local commodities brokerage in Malaysia said.       

At the close, the benchmark February contract on the Bursa Malaysia Derivatives Exchange lost 0.6 percent to settle at 2,227 ringgit ($730) per tonne, slightly above its intraday low of 2,217 ringgit, a level unseen since November 2009. 

Total traded volumes surged to 34,576 lots of 25 tonnes each after the midday break, compared to the usual 25,000 lots.

Traders will be counting on Malaysian exporters to use their tax-free export quota ahead of its year-end expiration and looking to stronger Chinese demand to bolster export figures for the first half of December.

India's monthly imports of cooking oil fell by a third in November, a trade body said, largely because of a drop in purchases of palm oil, as cold weather makes the commodity unusable and volatile prices deterred buyers.  

Malaysia's new crude palm oil export tax for January is also in focus as analysts said the tax, likely to be set at zero, could boost exports of the crude grade and ease record stock levels.   

In a bearish sign for palm oil,  Brent crude slipped toward $109 a barrel on rising U.S. oil stockpiles, while fears the world's largest economy might miss a deadline for next year's budget and risk a recession also kept bulls in check.

In other vegetable oil markets, U.S. soyoil for January delivery lost 0.1 percent in late Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 0.6 percent lower. 

  Palm, soy and crude oil prices at 1003 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      DEC2    2090   +48.00    2051    2090     322
  MY PALM OIL      JAN3    2147    +5.00    2123    2153    1802
  MY PALM OIL      FEB3    2227   -14.00    2217    2246   12125
  CHINA PALM OLEIN MAY3    6698   -24.00    6664    6736  603440
  CHINA SOYOIL     MAY3    8610   -50.00    8586    8638  445940
  CBOT SOY OIL     JAN3   49.51    -0.03   49.36   49.71    7640
  NYMEX CRUDE      JAN3   86.25    -0.52   86.20   86.78   13389

  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=3.05 Malaysian ringgit)