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VEGOILS-Palm slips to over 3-wk low as crude, soy and weak exports drag

(Updates prices, adds SGS data and fresh trader quote)

* Malaysia's Oct. 1-15 palm oil exports down 16.5 pct m/m -

ITS

* Palm oil to drop to 2,105 ringgit - technicals

* Oil falls to $84, near 4-year low, on oversupply

* Prices may remain weak in Oct before picking up again -

trader

By Anuradha Raghu

KUALA LUMPUR, Oct 15 (Reuters) - Malaysian palm oil futures

slipped to a more than three-week low on Wednesday, giving up

gains made in the previous session as crude and soy oil prices

slumped, and as export demand remained lacklustre in the first

half of October.

Brent crude fell to a fresh 47-month low on Wednesday before

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recovering to just above $84 a barrel as faltering global growth

curbed demand for fuel at a time of heavy oversupply.

Soy markets also fell after a report from the U.S.

Department of Agriculture showed that the record soybean harvest

was progressing faster than market expectations, paving the way

for bumper supplies of edible oils that may overwhelm demand.

"Selling continued in the afternoon on the back of weakness

in crude oil. When crude fell, soybean oil fell, and palm also

fell," said a trader with a foreign commodities brokerage in

Malaysia.

"The main thing that is pressuring the palm market right now

is fear of rising stocks and weak energy markets."

The benchmark December contract on the Bursa

Malaysia Derivatives Exchange fell to 2,111 ringgit in late

trade, the lowest since Sept. 23, before closing 1.3 percent

down at 2,134 ringgit ($651) per tonne.

Total traded volume stood at 59,068 lots of 25 tonnes, above

the average of 35,000 lots.

Technicals showed palm is expected to drop to 2,105 ringgit

per tonne, as it has broken a support at 2,150 ringgit, said

Reuters market analyst Wang Tao.

Exports of Malaysian palm oil products during Oct. 1-15 slid

16.5 percent from the same period a month earlier to 626,482

tonnes, cargo surveyor Intertek Testing Services showed.

Another cargo surveyor Societe Generale de Surveillance

reported exports for the same period fell 15.5 percent.

However, the fall was less steep compared to the first 10

days of the month as imports from Europe and China firmed.

Some traders were optimistic that palm prices may bottom in

October before picking up again as output begins to taper off

and wet weather slows down harvesting.

"The external market is weak, so we expect palm oil

fundamentals for October to be weak as well," said a second

Kuala Lumpur-based trader.

"But if you start looking at November and December,

production will start dropping. October will be the worst month.

It's only going to get better."

An extension of tax-free exports of crude palm oil from the

world's top producers could also help stoke demand, market

players said.

Malaysia, the world's No.2 producer, announced on Friday it

would extend an export duty exemption on the crude grade until

December, while Indonesia is expected to keep its own export tax

at zero for a second month in November.

The U.S. soyoil contract for December shed 1.5

percent in late Asian trade, while the most active January

soybean oil contract on the Dalian Commodities Exchange

dropped 0.9 percent.

Palm, soy and crude oil prices at 1009 GMT

Contract Month Last Change Low High Volume

MY PALM OIL OCT4 0 +0.00 2191 0 0

MY PALM OIL NOV4 2152 -28.00 2128 2172 2807

MY PALM OIL DEC4 2134 -29.00 2111 2158 29120

CHINA PALM OLEIN JAN5 5244 +6.00 5222 5324 1282604

CHINA SOYOIL JAN5 5920 -56.00 5914 5974 342726

CBOT SOY OIL DEC4 32.37 -0.80 32.22 32.87 10290

INDIA PALM OIL OCT4 445.80 -0.80 444.40 449.10 1159

INDIA SOYOIL OCT4 589.10 +0.30 588.00 592.50 13840

NYMEX CRUDE NOV4 80.74 -1.10 80.37 82.45 52028

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

India soy oil in Indian rupee per 10 kg

Crude in U.S. dollars per barrel

(1 US dollar = 3.277 Malaysian ringgit)

(1 US dollar = 6.1259 Chinese yuan)

(1 US dollar = 61.41 Indian rupee)

(Editing by Subhranshu Sahu and Anupama Dwivedi)