Palm slides on lower Indonesian export costs, weak crude, rising stockpiles

KUALA LUMPUR, Nov 2 (Reuters) - Malaysian palm oil futures fell on Monday, as lower Indonesian export costs intensified competitive pressure, while weaker crude oil prices and concerns over rising inventories added further pressure.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange slid 31 ringgit, or 0.66%, to 4,650 ringgit ($1,144.19) a metric ton at the close.

The market began its first trading session of November on a weaker note after Indonesia cut its November crude palm oil reference price and export levy, prompting Malaysian crude palm oil prices to adjust lower to remain competitive, said a Kuala Lumpur-based trader.

The contract also retraced following weakness in energy prices and a lack of confirmation over a Malaysian palm oil export tax waiver, said Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group.

"In absence of a bullish story, the focus once again has shifted to the actual supply and demand scenario, where supply is still overpowering demand," he added.

Cargo surveyors estimated that exports of Malaysian palm oil products for October rose between 45.4% and 73.5% from a month earlier.

Crude oil fell nearly 4% as talks between Iranian and Qatari officials on a deal to end the US-Israeli war on Iran raised hopes that Middle East supply disruptions could ease. O/R

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

Dalian's most-active soyoil contract rose 0.54%, while its palm oil contract added 0.92%. Soyoil prices on the Chicago Board of Trade were down 0.44%.

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

The ringgit , palm's currency of trade, weakened 0.35% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

($1 = 4.0640 ringgit)