Breaking News-RTRS-Asia palm oil stocks to fall on soy premium, rain

KUALA LUMPUR, Nov 24 (Reuters) - Palm oil stocks in Indonesia and Malaysia will drop around 500,000 tonnes to 3.5 million tonnes by the end of the year as strong Asian demand outpaces production hit by rains, traders said on Tuesday.
Stocks in the world's top two producers of the vegetable oil are set to come down by half a million tonnes in a matter of five weeks as big buyers China and India keep on purchasing palm oil that holds a $140 a tonne discount to rival soyoil.
Palm oil's discount usually stands at $40-50 a tonne in the last three months to the soyoil once the U.S. soybean harvests comes in, trade data showed.
Rainy weather in Malaysia hitting palm oil output will also contribute to the decline in stocks, said Malaysian, Singaporean and Indonesian traders.