MUMBAI, Dec 13 (Reuters) - Malaysian palm oil futures dropped more than 1% in early trade on Wednesday on slowing exports and tracking weakness in rival soyoil.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange lost 42 ringgit, or 1.12%, to 3,693 ringgit ($785.24) in the early trade.
FUNDAMENTALS
* Exports of Malaysian palm oil products for Dec. 1-10 fell 4.1% to 7.4% from the Nov. 1-10 period, cargo surveyors said.
* Malaysia's palm oil stocks at the end of November fell for the first time in seven months as production slumped more than exports, data from industry regulator Malaysian Palm Oil Board (MPOB) showed on Tuesday.
* Soyoil futures on the Chicago Board of Trade were trading up 0.1% after losing 1.4% in the previous session. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Chicago soybean futures lost more ground on Wednesday, with forecast of rains in parts of Brazil's dry oilseed-producing areas easing concerns over dry weather conditions hurting the newly planted crop.
* Palm oil may break support of 3,682 ringgit per metric ton, and fall to the Dec. 7 low of 3,641 ringgit, Reuters' technical analyst Wang Tao said.
MARKET NEWS
* Asian shares were mixed on Wednesday, while oil prices slid to six-month lows as traders waited for the year's final policy decision from the Federal Reserve and clues on whether the central bank will cut rates next year.
* Oil prices consolidated losses on Wednesday in Asian trade, after falling by more than 3% to six-month lows in the previous session on oversupply and demand concerns.
DATA/EVENTS (GMT) 0700 UK GDP Est 3M/3M Oct 0700 UK GDP Estimate MM, YY Oct 0700 UK Manufacturing Output MM Oct 1330 US PPI Machine Manufacturing Nov 1900 US Federal Open Market Committee announces its decision on interest rates followed by statement
($1 = 4.7030 ringgit) (Reporting by Rajendra Jadhav; Editing by Janane Venkatraman)
