JAKARTA, May 13 (Reuters) - The Southeast Asia palm oil market is gettingnervous following more arrivals of soyoil from Argentina, with India, theworld largest edible oils buyer, already showing huge appetite for soyoilbecause of lower prices.Some 200,000 tonnes of soyoil -- a direct competitor of palm oil --from Argentina is expected to arrive in Indian ports every month from Junethrough October, as soybean harvests in the world's third largest growerare set to reach full swing next month."Now most of the problems have stabilised in Argentina and renewedbuying has started from India," a Malaysian trader said."With prices of palm oil at high premiums... June...to October, allthese months, India will take at least 200,000 tonnes of soyoil," headded.The trader said refined bleached deodorised (RBD) palm olein was at$711 a tonne cif India after tax while crude degummed soyoil was at $572 atonne. Even after a refining cost of $25 a tonne, soyoil is still muchcheaper than palm oil.Argentina's financial chaos including default on the national debt anddevaluation of the peso, combined with a slow soybean harvest, halted thecountry's soyoil exports for two months, helping boosting prices of palmoil.Argentina has harvested almost a half its projected 29.5 million-tonnecrop but traders said farmers may continue to retain more merchandise inthe absence of a clear economic plan.India bought around 70,000 tonnes of soy oil from Argentina, Brazil andthe United States in March for April arrivals, traders said."India has bought a little more than 150,000 tonnes of soyoil in May.We may still see some palm oil buying this month but sales will definitelygo down next month," said another Malaysian trader.India is expected to import 450,000 tonnes of palm oil in May from topgrowers Malaysia and Indonesia, traders said.

DROP IN PALM OIL PRICESPalm oil traders are cautiously watching progress of soyoil harveststhroughout South America as that, combined with an expected higher outputfrom Indonesia, would drag down palm oil prices in the coming months."The problem is also from other markets such as Europe, China andPakistan...they will also prefer soy oil," one Indonesian trader said.Palm oil trees in Indonesia started producing more oil this month afterfour months of a low production cycle, traders said.Indonesia exported around 600,000 tonnes of palm oil in April, up fromthe normal 500,000 tonnes a month. Of this, Indonesia shipped 450,000tonnes to China.The country is also set to take advantage of a possible move fromPakistan, one of Malaysia's main palm oil buyers, to increase importduties for RBD palm olein and RBD palm oil by $25 a tonne each in June'sbudget, traders said."Pakistan is building its refining industry. It's quite possible it mayincrease the taxes on refined oil and reduce those on crude oil," thefirst Malaysian trader said."It would open a new door for Indonesia to export CPO," he said, addingthat Pakistan imported mainly refined products in the past years.Traders said Pakistan may purchase up to 170,000 tonnes of palm oilfrom Malaysia and Indonesia in May, up from a normal 80,0000 tonnes amonth because of falling local stocks.

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