VEGOILS-Palm extends rally on output drop, gain in rival oils

SINGAPORE, Nov 12 (Reuters) - Malaysian palm oil futures rose for a third consecutive session as the country's output in October unexpectedly dropped, while gain in rival oils aided sentiment. The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was up 0.6% at 2,642 ringgit ($638.47) in early trade. The contract rose to a near two-year high in the previous session at 2,657 ringgit a tonne. The Malaysian Palm Oil Board announced on Monday that stockpiles and production in October unexpectedly dropped. Stockpiles stood at 2.3 million tonnes at the end of October, down 4.1% from the previous month, while output was down 2.5% at 1.8 million tonnes from the previous month This compared with prediction of a 2% rise in Malaysian palm oil output in October to 1.88 million tonnes, according to a Reuters poll. Palm also received a boost from a jump in rival oil prices. Dalian's January palm oil contract DCPF0 last traded 2.1% higher, while the soyoil contract DBYF0 rose 0.9%. Elsewhere, the U.S. soyoil futures on the Chicago Board of Trade BOc2 were up 0.1%. Palm oil is affected by price movements in related oils as they compete for share in the global vegetable oils market. FUNDAMENTALS * U.S. soybean futures edged higher on Tuesday, rebounding from a one-month low touched in the previous session, though gains were checked amid fears that an eagerly-awaited trade deal between Washington and Beijing will not materialise. * U.S. oil fell for a second day, amid little sign of progress on U.S.-China trade talks, while Saudi Arabian crude output rose, reinforcing concerns about a glut. MARKET NEWS * Asian share markets got off to a sluggish start amid uncertainty over both the Sino-U.S. trade talks and the domestic political situation in Hong Kong. * The S&P 500 and Nasdaq stock indexes fell from record highs on Monday as uncertainty about progress in U.S.-China trade talks again rose to the fore following comments by President Donald Trump, while a jump in Boeing shares helped the Dow Jones Industrial Average eke out a slim gain. * Sterling held gains in early Asian trade, having hit a six-month high versus the euro and rising as much as 1% against the dollar overnight, as the prospect of a hung parliament in UK elections eased slightly. DATA/EVENTS (GMT) 0930 UK Claimant Count Unem Chng Oct 0930 UK ILO Unemployment Rate Sept 1000 Germany Zew Economic Sentiment Nov 1000 Germany Zew Current Conditions Nov PALM, CRUDE, SOY OIL PRICES AT 0248 GMT Contract Month Last Change Low High Volume MY PALM OIL JAN0 2634 +7.00 2621 2653 3061 MY PALM OIL DEC9 2586 +8.00 2580 2598 37 MY PALM OIL JAN0 2634 +7.00 2621 2653 3061 CHINA PALM JAN0 5556 +122.00 5502 5566 178610 OLEIN 4 CHINA SOYOIL JAN0 6506 +66.00 6438 6514 583500 CBOT SOY OIL DEC9 31.43 +0.01 31.38 31.46 2461 INDIA PALM NOV9 0.00 +0.00 0.00 0 0 OIL INDIA SOYOIL NOV9 806.8 +6.75 800.9 815.25 3810 NYMEX CRUDE DEC9 56.69 -0.17 56.55 56.89 15798 ($1 = 4.1380 ringgit) (Reporting by Fathin Ungku; editing by Uttaresh.V)