VEGOILS-Palm inches lower on concerns over high inventory

* Crude oil rally positive, but palm inventory weighs -

trader

By Liz Lee

KUALA LUMPUR, Nov 22 (Reuters) - Malaysian palm oil futures

fell marginally on Thursday as concerns over high inventory

levels overshadowed optimism linked to a crude oil price rally.

The benchmark palm oil contract for February delivery

on the Bursa Malaysia Derivatives Exchange was down

0.2 percent at 2,002 ringgit ($477.80) per tonne in the

first-half session of trading.

Trading volumes stood at 16,228 lots of 25 tonnes each at

the midday break. (1FCPO-TOT)

"The recovery in oil prices led gains in palm but that was

quickly pared back due to higher inventory concern," a Kuala

Lumpur-based trader said.

Palm oil prices are influenced by movements in crude oil, as

the edible oil is used as feedstock to make biodiesel.

Stocks in Indonesia and Malaysia - top producers of the

tropical oil - are expected to rise for the next two months, as

demand from key buyers typically slows because palm oil

solidifies in winter months.

A break below the support at $1,967 ringgit could confirm

the move into a price band formed by a lower channel, while a

break above 2,016 ringgit may lead to a gain to 2,060 ringgit,

Wang Tao, a Reuters market analyst for commodities and energy

technicals, said.

In other related edible oils, the Dalian Commodity Exchange,

the January soybean oil contract rose as much as 0.2

percent, but the January palm oil contract was

unchanged.

The Chicago December soybean oil contract was

untraded due to a holiday.

Palm, soy, and crude oil prices as of 0631 GMT

Contract Month Last Change Low High Volume

MY PALM OIL DEC8 1837 +15.00 1813 1850 447

MY PALM OIL JAN9 1935 +0.00 1919 1950 1797

MY PALM OIL FEB9 2002 -4.00 1999 2020 7418

CHINA PALM JAN9 4176 +2.00 4166 4202 187362

OLEIN

CHINA SOYOIL JAN9 5416 +12.00 5386 5434 175682

CBOT SOY OIL DEC8 27.8 +0.00 0 0 0

INDIA PALM OIL NOV8 510.00 +2.30 505.50 510 346

INDIA SOYOIL DEC8 731.05 +2.15 727 731.5 3850

NYMEX CRUDE JAN9 54.53 -0.10 54.28 54.82 29641

* 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

* India soy oil in Indian rupee per 10 kg

* Crude in U.S. dollars per barrel

($1 = 4.1900 ringgit)

($1 = 71.18 Indian rupees)

($1 = 6.925 Chinese yuan)

(Reporting by Liz Lee, Editing by Amrutha Gayathri)