* Reuters to issue Malaysian palm oil poll this week * Deepening euro zone crisis offsets weather worries * Planter says palm oil is now a buyers market (adds details, comments) By Niluksi Koswanage KUALA LUMPUR, Dec 6 (Reuters) - Malaysian palm oil futures dropped on Tuesday as the euro zone debt crisis deepened with Standard & Poor's warning it may cut the credit ratings of the region that is threatening to slow the world's economic growth. Prices of the edible oil have fallen 18 percent so far this year thanks to the brewing debt crises in the U.S. and Europe, although concerns over heavier than usual rains curbing output could limit losses. "There is really no impetus for the market to move higher. The market is keeping its support level at 3,080 ringgit per tonne," said a trader with a foreign commodity brokerage. "The declines have not been too big as market players are waiting to see what the euro zone leaders summit this week will yield," he added. By the midday break, the benchmark February palm oil futures on the Bursa Malaysia Derivatives Exchange fell 0.9 percent to 3,094 ringgit ($990) per tonne. Overall traded volumes stood at 5,447 lots of 25 tonnes each, much higher than the usual 12,500 lots as more investors turned cautious and waited on the sidelines. The previous day, the market hit a two-week high on reports of flooding in some areas of Malaysia. The Malaysian Meteorological Department issued a heavy rain advisory for the northern states of Kelantan bordering Thailand and Terengganu, warning rains could cause floods in some low-lying areas. Both these regions account for a small percentage of national production, but the warning shows that the monsoon rains are moving closer to the key oil palm growing regions of Pahang and Johor. "We do anticipate logistics disruptions if the rains continue to worsen and the floods hit the oil palm estates," said a Malaysian planter. "I think some of the market participants are worried about that as the storage tanks are still pretty full. We are in a buyers market rather than a seller's market at this time." Reuters will issue a poll on Malaysia's November palm oil stocks, production and exports later this week ahead of the actual industry data release on Monday. Traders are talking about a 15-18 percent drop in November production from a month ago, thanks to a seasonal decline in yields and rains disrupting some harvesting. Brent crude fell towards $109 on Tuesday on the deepening euro zone debt crisis, weighing on prices of other vegetable oils that are increasingly used as a feedstock for competing biodiesel. U.S. soyoil for December delivery dropped 0.5 percent, partly due to propsects of a big South American crop coming in next year. China's most active May 2012 soybean oil contract <0#DBY:> fell 0.7 percent. Palm, soy and crude oil prices at 0518 GMT Contract Month Last Change Low High Volume MY PALM OIL DEC1 0 +0.00 3085 0 0 MY PALM OIL JAN2 3090 -31.00 3090 3108 536 MY PALM OIL FEB2 3094 -28.00 3093 3112 3263 CHINA PALM OLEIN MAY2 7956 -48.00 7938 7986 52378 CHINA SOYOIL MAY2 8804 -62.00 8782 8840 103414 CBOT SOY OIL JAN2 50.09 -0.20 50.02 50.29 3364 NYMEX CRUDE JAN2 100.48 -0.51 100.38 100.67 3862 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 ($1 = 3.1345 ringgit)

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