* Prices dip to 2,265 ringgit, lowest since Aug. 12
* October monsoon could lift yields -trader
* Malaysia's Sept. 1-25 palm oil exports up 6.4-6.5 pct
By Anuradha Raghu
KUALA LUMPUR, Sept 26 (Reuters) - Malaysian palm oil futures
fell for a third straight day on Thursday, dipping to their
lowest in more than a month, as concern over surging Southeast
Asian supply of the tropical oil kept investors on edge.
Traders and analysts widely expect output in top producers
Malaysia and Indonesia to pick up from September, as the peak
palm oil production season kicks off, adding pressure to prices
that have lost almost 7 percent this year.
Some market players say Malaysia's palm oil output could hit
a record this year. The No.2 producer has churned out about
630,000 tonnes more crude palm oil in the period from January to
August over the corresponding 2012 period, data from industry
regulator the Malaysian Palm Oil Board shows.
"Many people are now reporting double-digit growth in
production for September. That could be one cause why the market
is drifting lower," a trader with a foreign commodities
The monsoon season, which brings rain to the oil
palm-growing parts of Malaysia, could also further lift yields,
the Kuala Lumpur-based trader said.
"This time round the high cycle is a little delayed -- if
the monsoon comes in October, it will encourage flowering, and
production could see a sudden big pick-up."
The benchmark December contract on the Bursa
Malaysia Derivatives Exchange had dipped to 2,265 ringgit ($704)
per tonne, the lowest since Aug. 12, before pulling up slightly
to end at 2,268 ringgit by Thursday's close, marking a loss of
Total traded volumes stood at 24,809 lots of 25 tonnes each,
lower than the average 35,000 lots.
Exports of Malaysian palm oil products rose between 6.4
percent and 6.5 percent in the Sept. 1-25 period from a month
ago, according to cargo surveyor data, as shipments to India and
Europe picked up and helped offset weaker Chinese demand.
In other markets, oil prices gained slightly despite easing
geopolitical worries and an improving supply picture, as traders
sought bargains after sharp losses earlier this month.
In vegetable oil markets, the U.S. soyoil contract for
December eased 0.4 percent in late Asian trade. The
most-active January soybean oil contract on the Dalian
Commodities Exchange also fell 0.4 percent.
Palm, soy and crude oil prices at 1005 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT3 2311 -13.00 2300 2327 660
MY PALM OIL NOV3 2272 -27.00 2269 2296 2278
MY PALM OIL DEC3 2268 -26.00 2265 2291 12922
CHINA PALM OLEIN JAN4 5404 -6.00 5364 5426 214026
CHINA SOYOIL JAN4 7042 -26.00 7012 7074 407256
CBOT SOY OIL DEC3 41.94 -0.15 41.88 42.09 3371
NYMEX CRUDE NOV3 102.74 +0.08 102.20 102.87 15586
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=3.218 Malaysian ringgit)
(Editing by Clarence Fernandez and Himani Sarkar)