* Market buying has been overdone * Malaysian Nov 1-20 palm oil exports firm * EU debt crisis, US deficit reduction problems stir concerns (Updates prices, comments) By Chew Yee Kiat KUALA LUMPUR, Nov 21 (Reuters) - Malaysian palm oil dropped on Monday from a five-month high hit last week on concerns buying was overdone, while the euro zone debt crisis and an apparent failure by the U.S. politicians to agree on a deficit reduction plan also hurt sentiment. The gloomy economic climate pushed palm below 3,200 ringgit although strong fundamentals such as exports data issued by cargo surveryors and La-Nina driven rains are expected to provide support. "External factors are putting a lot of pressure on the Malaysian market, especially the drop in European equity market due to lingering doubts on the euro zone crisis," said a trader with a foreign commodities brokerage. Benchmark February palm oil futures on the Bursa Malaysia Derivatives Exchange closed 1.8 percent lower at 3,191 ringgit ($1,000) per tonne. Prices touched a peak of 3,270 on Friday, a level not seen since June 15. Overall traded volumes stood at 32,418 lots at 25 tonnes each, higher than the usual 25,000 lots as activity picked up from the midday break. Reuters analyst Wang Tao said palm oil will retrace to 3,134 ringgit per tonne, as indicated by its wave pattern and a Fibonacci retracement analysis. The market is bracing for low production in the last quarter due to a seasonal decline in yields and the prospects of a La Nina weather condition making the seasonal monsoon rains worse, hampering harvesting. Some traders said Malaysian palm exports will continue to be strong as buyers like China, India and Pakistan are restocking after major festivals in the third quarter. "The threat of supply disruption is also spurring more orders and we could see solid November export numbers," said another trader in Malaysia. Exports of Malaysian palm oil products for Nov. 1-20 rose 0.6 percent to 1,037,923 tonnes from 1,031,953 tonnes shipped during Oct. 1-20, cargo surveyor Intertek Testing Services said. Another cargo surveyor Societe Generale de Surveillance said exports for the same period were almost flat at 1,033,040 tonnes compared to 1,033,454 tonnes a month ago. U.S. crude oil futures fell more than $2 per barrel on Monday on worries over global growth, weighing on other vegetable oil markets. U.S. soyoil for December delivery edged down 0.9 percent while China's most active May 2012 soybean oil contract <0#DBY:> slipped 0.3 percent. "The Dalian soy bean oil market has been weaker today as it is dragged down by the CBOT market which recently hit its one-year low," said Huang Zhi Qiang, an analyst with Guotai & Junan. "Market is mostly bearish because of the European situation and this is not expected to change soon ... even with rumours saying that China is importing more American beans," the analyst added. Palm, soy and crude oil prices at 1010 GMT Contract Month Last Change Low High Volume MY PALM OIL DEC1 3195 -76.00 3195 3260 2485 MY PALM OIL JAN2 3195 -65.00 3195 3258 6247 MY PALM OIL FEB2 3191 -57.00 3190 3257 16406 CHINA PALM OLEIN MAY2 8152 -26.00 8126 8212 161888 CHINA SOYOIL MAY2 9098 -28.00 9058 9124 174222 CBOT SOY OIL DEC1 50.51 -0.37 50.42 51.00 5714 NYMEX CRUDE JAN2 95.89 -1.78 95.61 97.86 24863 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 Crude in U.S. dollars per barrel

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