VEGOILS-Palm oil jumps to near 1-wk high as ringgit slides

Reuters

(Recasts lead, updates prices)

* Asian currencies fall on US political row, China data

* Prices fall 3.3 pct in Sept

* Malaysia Sept palm exports up 1-2 pct -ITS,SGS

* Palm oil seen in 2,270-2,311 ringitt range -technicals

By Anuradha Raghu

KUALA LUMPUR, Sept 30 (Reuters) - Malaysian palm oil futures rose to their

highest in nearly a week on Monday after the ringgit dropped in late trade, but

weak U.S. and Chinese soy markets capped gains and locked prices in a tight

range.

By the close, the benchmark December contract had inched up 0.4

percent to 2,325 ringgit ($713) per tonne on the Bursa Malaysia Derivatives

Exchange. Prices reached as high as 2,327 ringgit, the highest since Sept. 24.

In the morning session, the contract had fallen as low as 2,296 ringgit but

turned up after Asian currencies fell on investor uncertainty about a U.S.

government shutdown and on disappointing Chinese factory activity data.

A weaker local currency makes palm oil cheaper for overseas buyers and helps

stoke demand.

But weak prices for soyoil, which could channel some food and fuel demand

away from palm oil, put a lid on gains and prevented prices from rallying.

The U.S. soyoil contract for December fell 0.1 percent in late Asian

trade, while the most-active January soybean oil contract on the Dalian

Commodities Exchange eased 0.7 percent.

"The negative factor is weak global commodity prices like soybean, soybean

oil and crude oil," said a Kuala Lumpur-based trader at a foreign commodities

brokerage.

"At the same time, there is weakness in the Malaysian ringgit, so the market

is moving in a tight range."

The Malaysian ringgit and the Indonesian rupiah took the

hardest hits. The ringgit slipped 1.03 percent to 3.2620 against the U.S. dollar

late on Monday, while the rupiah's indicative prices fell to as low as 11,600,

according to Thomson Reuters data.

Total traded volumes in the December palm oil contract amounted to 29,246

lots of 25 tonnes each, slightly below the average 35,000 lots.

On the technical front, Malaysian palm oil is likely to

consolidate in a range of 2,270 to 2,311 ringgit per tonne before either

rebounding further or continuing to slide, said Reuters market analyst Wang Tao.

Palm also drew support from export demand. Shipments of Malaysian palm oil

grew 2.1 percent in September compared with a month ago, cargo surveyor Intertek

Testing Services said. Another cargo surveyor showed exports rose 1.0 percent

for the same period.

But investor fears over seasonally rising output in Southeast Asia and

predictions that prices could hit fresh lows in the coming months dragged them

down 3.3 percent for the month of September.

Forecasts of near-record U.S. harvests also piled pressure on Chicago

soybeans, which hovered near one-month lows on Monday.

Larger supplies of soybeans for crushing into soyoil could

snatch demand away from palm oil.

In other markets, Brent crude fell more than $1 to below $108 a

barrel and was headed for its first monthly decline since May, as tensions over

Iran eased and a potential U.S. government shutdown clouded the outlook for

demand.

Palm oil is often used as a green alternative to crude oil for producing

biofuels.

Contract Month Last Change Low High Volume

MY PALM OIL OCT3 2355 +5.00 2335 2355 170

MY PALM OIL NOV3 2315 +1.00 2300 2325 4704

MY PALM OIL DEC3 2325 +10.00 2296 2327 14873

CHINA PALM OLEIN JAN4 5384 -2.00 5370 5418 230740

CHINA SOYOIL JAN4 6960 -52.00 6934 7008 359152

CBOT SOY OIL DEC3 41.74 -0.07 41.51 41.80 7665

NYMEX CRUDE NOV3 101.43 -1.44 101.36 102.54 28038

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=3.26 Malaysian ringgit)

(Editing by Jane Baird)

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