* Palm oil has lost nearly 20 percent in 2011 * Exports for Sept. 1-20 to show further decline * Euro zone crisis sparking fears of commodity demand slowdown (Updates with detail, trader comments) By Niluksi Koswanage KUALA LUMPUR, Sept 19 (Reuters) - Malaysian palm oil futures fell on Monday as Europe stumbled over attempts to solve the euro zone debt crisis, strengthening investor fears commodity demand growth may slow. Palm oil has lost almost 20 percent so far this year on high stocks and a slowdown in demand, although some traders bet that festival demand in India may see some orders coming in. "Sentiment is rather weak. Exports are definitely slower in September but India's Diwali festival is coming up and there should be some support from there," said a trader with a foreign commodities brokerage, referring to the Hindu festival on Oct. 26. By midday, benchmark December palm oil FCPOc3 on the Bursa Malaysia Derivatives Exchange fell 1 percent to 3,038 ringgit ($983) per tonne. Overall trade volumes were light with 5,700 lots of 25 tonnes changing hands, compared to the usual 12,500 lots, as the market was still quiet after a long weekend. Technicals were negative, with Reuters analyst Wang Tao expecting palm oil to fall to 3,000 ringgit per tonne, as it has completed a consolidation within an ascending triangle. Traders are looking for Sept. 1-20 Malaysian palm oil exports to show a downward trend after a strong August as China and India pause on buying in hopes prices fall further. For the first half of September, exports fell by close to a third from the same period a month ago to 652,766 tonnes. Brent crude slipped below $112 on Monday on concerns of weakening demand as investors fear policymakers may not be doing enough to stop Greece's sovereign debt problem from turning into a full-blown banking crisis. U.S. soyoil for October delivery dropped 0.9 percent, while the most active May 2012 soybean oil contract on China's Dalian Exchange lost nearly 1 percent. Palm, soy and crude oil prices at 0436 GMT Contract Month Last Change Low High Volume M'ASIA PALM OIL OCT1 3070 -29.00 3059 3077 185 M'ASIA PALM OIL NOV1 3046 -32.00 3036 3048 1731 M'ASIA PALM OIL DEC1 3038 -32.00 3030 3042 2768 M'ASIA PALM OIL JAN2 3038 -32.00 3031 3041 844 DALIAN SOY OIL MAY2 10076 -100.00 10060 10146 285516 CBOT SOY OIL DEC1 56.39 -0.47 56.32 56.79 3279 NYMEX CRUDE OCT1 86.78 -1.19 86.65 87.75 4223 Palm oil prices in Malaysian ringgit per tonne CBOT soy oil in U.S. cents per pound Dalian soy oil in Chinese yuan per tonne Crude in U.S. dollars per barrel ($1 = 3.089 Ringgit) (Editing by Michael Urquhart) ((niki.koswanage@thomsonreuters.com)(+603 2333 8035)(Reuters Messaging:)(niki.koswanage.thomsonreuters.com@thomsonreuters.net )

Source