VEGOILS-Palm ends lower as demand dips; ringgit stronger after Malaysia budget


(Updates prices, adds graph on biodiesel blending)

* Malaysia Oct 1-25 palm oil exports between -0.6 pct to

+3.8 pct - cargo surveyors

* Market braces for selling with demand seen tapering -


* Weekly prices up 1.8 percent

* Ringgit gains on govt' plan to introduce consumption tax

By Anuradha Raghu

KUALA LUMPUR, Oct 25 (Reuters) - Malaysian palm oil futures

ended lower on Friday after weaker-than-expected export data

fanned concerns that demand for the tropical oil has begun to

taper, while a stronger ringgit following the Malaysian budget

announcement curbed buying.

Cargo surveyor Intertek Testing Services said that shipments

of Malaysian palm oil fell 0.6 percent to 1,231,393 tonnes in

the Oct. 1-25 period, as a lull in exports to India offset a

slight increase to China and Europe.

Another cargo surveyor Societe Generale de Surveillance

showed exports rise 3.8 percent for the same period.

But losses were capped by expectations that output in

Malaysia, the world's No.2 producer, has slowed and would help

keep stocks under 2 million tonnes despite dwindling exports.

"The market is bracing for further selling given the

expectation that demand is tapering," said a trader with a local

commodities brokerage in Kuala Lumpur.

The Malaysian ringgit rose 0.6 percent to 3.1425

against the dollar on Friday after Prime Minister Najib Razak

said the government will impose a new consumption tax. A

stronger ringgit makes palm feedstocks more expensive for

overseas buyers.

By Friday's close, the benchmark January contract

on the Bursa Malaysia Derivatives Exchange had eased 0.8 percent

to 2,444 ringgit ($777) per tonne, chaffing away at weekly

prices which posted a small gain of 1.8 percent.

Total traded volume stood at 30,546 lots of 25 tonnes each,

lower than the usual 35,000 lots.

Investors are wary as measures the 6 percent goods and

services tax (GST) which will be implemented in April 2015 could

eat into local consumption demand.

"The implementation of such policies is likely to result in

a pullback in domestic demand, thereby weighing on palm oil

prices," Phillip Futures analyst Tan Chee Tat said in a note.

Malaysia is set to impose a requirement for biodiesel to use

7 percent palm oil, up from 5 percent now, as a way of whittling

down palm oil stocks and cushioning prices in the face of

growing competition from other edible oils.

Industry and government officials said the "B7" biodiesel

blend could be mandatory from December as talks with interested

parties were nearing a conclusion.

In other markets, Brent crude oil fell below $107 a barrel

on Friday in a third day of falls on concerns over increasing

supply and faltering demand despite signs of faster economic

growth in China.

In competing vegetable oil markets, the U.S. soyoil contract

for December fell 0.1 percent in late Asian trade. The

most-active January soybean oil contract on the Dalian

Commodities Exchange dropped 0.8 percent.

Palm, soy and crude oil prices at 1018 GMT

Contract Month Last Change Low High Volume

MY PALM OIL NOV3 2458 -14.00 2455 2465 453

MY PALM OIL DEC3 2445 -17.00 2443 2461 3799

MY PALM OIL JAN4 2444 -20.00 2441 2460 16810

CHINA PALM OLEIN MAY4 6084 -70.00 6060 6132 940706

CHINA SOYOIL MAY4 7136 -58.00 7130 7204 686502

CBOT SOY OIL DEC3 41.12 -0.01 41.05 41.38 6647

NYMEX CRUDE DEC3 97.54 +0.44 96.99 97.57 14912

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=3.146 Malaysian ringgit)

(Editing by Joseph Radford)

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