Palm hits four-month low on expectations of record October stocks

KUALA LUMPUR, Nov 4 (Reuters) - Malaysian palm oil futures extended losses for a third straight session on Wednesday, falling to a four-month low, as expectations of record-high stockpiles and weaker Dalian palm olein pressured the market.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange slid 55 ringgit, or 1.21%, to 4,496 ringgit ($1,104.67) a metric ton, the lowest closing price since July 3.

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 1.45%, while its palm oil contract shed 2.91%. Soyoil prices on the Chicago Board of Trade were down 0.64%.

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

Oil prices rose in a volatile session as investors awaited Washington's next move in the US-Israeli war on Iran, after Democrats captured control of Congress from President Donald Trump's Republicans in the midterm elections. O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit , palm's currency of trade, strengthened 0.34% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.

($1 = 4.0700 ringgit)