* U.S. gov't shutdown weighs on greenback, lifts ringgit 1.1
* Prices likely rangebound until stocks, output data out
* Palm oil still neutral in 2,265-2,332 ringgit range
By Anuradha Raghu
KUALA LUMPUR, Oct 3 (Reuters) - Malaysian palm oil futures
ended lower for a second session on Thursday as the U.S.
government shutdown buoyed the ringgit currency, curbing demand
from overseas buyers.
Lingering bearish sentiment on competing soybeans also
weighed on palm prices.
The U.S. dollar sagged to eight-month lows on Thursday as
the government shutdown dragged on with no end in sight,
triggering a rally in emerging Asian currencies which climbed
versus the greenback.
The Malaysian ringgit was up 1.1 percent at 3.1935
against the dollar late on Thursday, adding pressure on palm
prices as it made the ringgit-priced feedstock more expensive
for overseas buyers and refiners.
U.S. soybeans had plunged to a 19-month low on Tuesday
after a government report showed supplies were actually much
larger than expected. Prices on Thursday rose on
bargain-hunting, but ideal weather in the U.S. grain belt could
speed up harvests of bumper crops.
Bigger supplies of soybeans for crushing into soyoil could
snatch demand away from palm oil, the world's most traded
vegetable oil. Traders say the drop in soyoil prices have
already narrowed palm oil's discount to its competitors.
"The market came down today because of weak soy markets.
Another contributing factor is the strength of the ringgit,"
said a trader with a local commodities brokerage in Kuala
The benchmark December contract on the Bursa
Malaysia Derivatives Exchange had shed 0.4 percent to 2,302
ringgit ($720) per tonne by Thursday's close. Prices traded in a
tight range of 2,285-2,310 ringgit.
Total traded volumes stood at 21,326 lots of 25 tonnes each,
much lower than the average 35,000 lots.
"I think prices will be rangebound until the Malaysian Palm
Oil Board (MPOB) report," the trader added.
Industry regulator MPOB will release official data on
September's stocks, exports, and output in the world's No.2
producer on Oct. 10. Malaysian palm oil stocks at end-August
stood at 1.67 million tonnes.
Technicals showed that signals continue to be neutral for
Malaysian palm oil as it remains in a range of
2,265-2,332 ringgit per tonne, Reuters market analyst Wang Tao
In other markets, crude oil slipped to around $109 a barrel
on Thursday on worries that a prolonged U.S. government shutdown
would hurt demand in the world's biggest oil consumer.
Weaker crude oil prices could also channel some demand away
from palm oil, which is often used as a substitute to produce
In competing vegetable oil markets, the U.S. soyoil contract
for December gained 0.9 percent in late Asian trade. The
Dalian Commodities Exchange is closed for a holiday and will
reopen on Oct. 8.
Palm, soy and crude oil prices at 1008 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT3 2340 -15.00 2339 2360 408
MY PALM OIL NOV3 2307 -9.00 2287 2313 1791
MY PALM OIL DEC3 2302 -9.00 2285 2310 12594
CHINA PALM OLEIN JAN4 - - - - -
CHINA SOYOIL JAN4 - - - - -
CBOT SOY OIL DEC3 39.71 +0.33 39.37 39.86 11237
NYMEX CRUDE NOV3 103.76 -0.33 103.45 103.87 14720
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=3.196 Malaysian ringgit)
(Editing by Muralikumar Anantharaman)