* Prices hit 2,573 ringgit - highest since Feb. 20
* Palm prices to target 2,630 ringgit - technicals
* Palm boosted by technical trading, output concerns -
(Adds closing prices)
By Michael Taylor
JAKARTA, Oct 30 (Reuters) - Malaysian palm oil futures rose
to their highest level in eight months on Wednesday, supported
by technical trading and expectations that wet weather may hit
production in dominant Southeast Asian producers in the coming
By the close, the benchmark January contract on the
Bursa Malaysia Derivatives Exchange ended up 1.8 percent at
2,543 ringgit ($810) per tonne.
"The market is pretty strong," said a trader with a foreign
commodities brokerage. "We are going into the monsoon season and
Malaysian production is likely to go down."
Both Malaysia and Indonesia, which account for about 90
percent of the world's palm oil production, are now entering
their monsoon weather season.
Benchmark prices earlier touched 2,573 ringgit per tonne,
their highest since Feb. 20. Total traded volume stood at 49,517
lots of 25 tonnes each, above the usual 35,000 lots.
Technicals showed Malaysian palm oil has a good chance of
rising towards 2,630 ringgit, once it had broken above a
resistance at 2,544 ringgit per tonne, said Reuters market
analyst Wang Tao.
"I can't put a finger on it -- probably a technical move
today," said a second trader with foreign commodities brokerage.
"I don't see any big changes to the fundamentals."
Competing vegetable oil markets also rose, traders said,
with the U.S. soyoil contract for December rising 1.3
percent in early trade. The most-active May soybean oil contract
on the Dalian Commodities Exchange rose 2 percent.
In other markets, Brent crude held firm near $109 a barrel
as a bigger-than-expected increase in oil inventories in the
United States was overshadowed by export disruptions in
Palm traders were also positioning themselves ahead of data
due on Thursday. Cargo surveyors Intertek Testing Services and
Societe Generale de Surveillance will release Malaysia's October
palm oil export data on Oct. 31.
"Production is much lower than expected," said a
Jakarta-based palm trader. "The bumper crop has not happened.
"Some people still hope that production will increase from
December to January, but most are losing confidence on this now
Palm, soy and crude oil prices at 1024 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV3 2585 +58.00 2557 2590 266
MY PALM OIL DEC3 2555 +48.00 2531 2582 4517
MY PALM OIL JAN4 2543 +45.00 2520 2573 25671
CHINA PALM OLEIN MAY4 6332 +242.00 6166 6332 1057172
CHINA SOYOIL MAY4 7214 +142.00 7106 7268 1572360
CBOT SOY OIL DEC3 41.51 +0.54 40.88 41.80 9336
NYMEX CRUDE DEC3 97.49 -0.71 97.40 97.82 19463
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 = 3.1455 ringgit)
(Editing by Gopakumar Warrier)
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