21/02/2013 (Reuters) - Malaysian palm oil futures edged down in choppy trade on Wednesday, as dismal export data offset optimism that demand could get a boost if dry Latin American weather dents supply of rival soyoil.

U.S. soybeans hit a 12-day high on Wednesday as the oilseed drew more support from concerns that dry weather in Argentina would cut the upcoming harvest.

Traders fear that a boost in palm oil demand may not be strong enough to reduce a 2.58 million tonne stockpile in Malaysia, with exports in the first 20 days of February inching up just 0.6 percent from a month ago.

Another cargo surveyor, Societe Generale de Surveillance, reported a slight 0.3 percent drop in palm oil exports for the same period.

Malaysia's plan to raise its crude palm oil export tax for March to 4.5 percent from February's zero percent, making the grade more expensive for overseas buyers, also weighed on prices.  

"There is uncertainty over the demand in March because of the export tax on crude palm oil, while end-stocks are still hovering above 2.5 million tonnes," said a trader with a local  commodities brokerage in Kuala Lumpur.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange inched down 0.2 percent to close at 2,561 ringgit ($827) per tonne. Prices traded in a range between 2,546-2,584 ringgit.

Total traded volumes stood at 30,525 lots of 25 tonnes each, higher than the usual 25,000 tonnes.

Technicals showed Malaysian palm oil is expected to extend its gains to 2,620 ringgit per tonne, as indicated by a rising wedge, said Reuters market analyst Wang Tao.

Palm oil inventories in Malaysia, the world's No.2 producer, eased 1.9 percent in January from record highs of 2.63 million tonnes, the first decline in stocks since June.

Although overall output is expected to rise again this year, analysts say appetite could gain as well.

Hamburg-based oilseeds analysts Oil World said on Tuesday it expects Malaysia's 2012/2013 output to increase to 19.7 million tonnes, adding that growing consumption could help ease global stocks.      

Brent crude dropped toward $117 a barrel on Wednesday on the prospect of more Saudi supply while investors look ahead to economic and inventory data from the United States for clues on demand in the world's largest oil consumer.

In other vegetable oil markets, the U.S. soyoil for May delivery edged up 0.2 percent in late Asian trade. The most active September soybean oil contract on the Dalian Commodity Exchange rose 0.7 percent.    

  Palm, soy and crude oil prices at 1008 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      MAR3    2508    +2.00    2495    2519     330
  MY PALM OIL      APR3    2538    -4.00    2521    2556    6848
  MY PALM OIL      MAY3    2561    -5.00    2546    2584   17489
  CHINA PALM OLEIN SEP3    7124   +16.00    7110    7170  318866
  CHINA SOYOIL     SEP3    8754   +58.00    8728    8770  293204
  CBOT SOY OIL     MAR3   52.65    +0.12   52.28   52.77    4911
  NYMEX CRUDE      MAR3   96.84    +0.23   96.59   97.04    4545

  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=3.095 ringgit)