Palm extends losses on expectations of record October inventories

KUALA LUMPUR, Nov 4 (Reuters) - Malaysian palm oil futures slipped more than 1% to hit mid-June lows on Wednesday, as expectations of record-high stockpiles and weaker Dalian palm olein weighed on prices.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange slid 55 ringgit, or 1.21%, to 4,496 ringgit ($1,103.31) a metric ton by the midday break, extending losses to a third straight session.

The market continued to trade with a bearish tone after polls on Tuesday estimated palm oil end-stocks likely reached a record high last month, a Kuala Lumpur based trader said.

Malaysia's palm oil inventories were projected to have risen 6.8% from September's record 3.51 million tons to 3.75 million tons, a Reuters survey showed.

"Overnight weakness in Dalian palm olein, partly pressured by the decline in crude palm oil futures, added to the negative sentiment," the trader said.

Dalian's most-active soyoil contract fell 1.6%, while its palm oil contract shed 3.21%. Soyoil prices on the Chicago Board of Trade were down 1.46%.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Crude oil prices slipped in early trade as investors awaited the results of the US midterm elections and their potential impact on peace talks in the Middle East, even after industry data showed US crude stocks unexpectedly fell last week. O/R

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

The ringgit , palm's currency of trade, strengthened 0.12% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.

($1 = 4.0750 ringgit)