HAMBURG, Aug 20 (Reuters) - Palm oil stocks in the main Asian productioncountries of Malaysia and Indonesia are likely to fall on the year betweenSeptember and the end of December 2002, Hamburg-based newsletter Oil Worldsaid.The newsletter said it is significant that recent palm oil pricestrength occurred although Malaysian and Indonesian production isincreasing seasonally."Foreign demand for Malaysian and Indonesian palm oil is high and as aresult of insufficient production, palm oil stocks in Malaysia andIndonesia will decline below the year-ago level as of end September aswell as until end-December 2002," it said."Average palm oil yields are expected to be down from last year inMalaysia and Indonesia partly due to a decline in the biological yieldcycle following the (palm tree) stress resulting from high production inthe last two years."Other factors cutting output are recent dryness in several productionregions and Malaysia's replanting programme which involved 150,000 oldtrees being cut down up to the end of June this year, it added.