14/03/2013 (Reuters) - Malaysian palm oil futures fell to a two-month low on Thursday, dropping for a third straight session on persistent weakness in soy markets, while traders watch for upcoming export data to gauge demand.

U.S. soybean prices have been pressured by poor exports and increased competition from South American supplies as traders said Brazilian beans were now being offered at competitive prices.

Palm oil investors are still counting on a seasonal drop-off in production that could ease stocks and support prices. Export demand is also in focus as cargo surveyors will release Malaysia's March 1-15 export data on Friday.   

"We are all expecting the market to move up due to the low production season but the weakness from the soy side is pulling down palm as well," said a Singapore-based trader with a global commodities house.

Palm oil tends to track soybean oil prices closely as they are substitutes for each other.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange had slid 1.3 percent to 2,366 ringgit ($760) per tonne, just above its intraday low of 2,360 ringgit, the lowest level since Jan. 14.

Total traded volume stood at 29,364 lots of 25 tonnes each, slightly higher than the usual 25,500 lots.

Technical analysis indicates palm oil is expected to fall to 2,333 ringgit per tonne, said Reuters market analyst Wang Tao.

Cargo surveyor Intertek Testing Services said Malaysia's export demand for the March 1-10 period was almost flat with a month ago, while another cargo surveyor, Societe Generale de Surveillance, reported a slight 2.2 percent increase for the same period. 

Palm oil prices may face further pressure as traders said significantly lower crude palm oil shipments and record high stocks at destination ports may weigh on exports for the rest of the month.       

In other markets, Brent crude held steady below $109 a barrel on Thursday on concerns over demand growth from top two consumers China and the United States, while a firm dollar added pressure on prices.     

In other vegetable oil markets, U.S. soyoil for May delivery edged down 0.7 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange had lost 0.7 percent.

  Palm, soy and crude oil prices at 1011 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      MAR3       0    +0.00       0       0       0
  MY PALM OIL      APR3    2355   -31.00    2350    2376     888
  MY PALM OIL      MAY3    2366   -31.00    2360    2406   15067
  CHINA PALM OLEIN SEP3    6264  -132.00    6246    6358  670986
  CHINA SOYOIL     SEP3    8008   -54.00    7976    8078  835972
  CBOT SOY OIL     MAY3   49.19    -0.33   49.03   49.72   10474
  NYMEX CRUDE      APR3   92.73    +0.21   92.18   93.02   19428

  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=3.11 ringgit)