KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange rallied for a second day Friday as traders resorted to buying to cover
their shorts amid gains in crude oil and soyoil futures, participants said.

  The benchmark November contract on the Bursa Malaysia Derivatives ended MYR44
higher at MYR2,345 a metric ton, after trading in a MYR2,234-MYR2,346 a ton
range.

  In the morning session, prices slipped into the red on selling pressure,
breaching support at MYR2,260 to an intraday low of MYR2,234/ton. Rates
rebounded in the afternoon as the market was oversold, traders said.

  "There was speculative buying coming in later in the day, which helped boost
prices. Short covering activities ahead of the weekend supported prices as
well," said a Malaysia-based exporter. "The bulls are moving in to support the
market."

  CPO prices are down 3.9% from a week earlier, but today's "higher closing
price may see the market moving up to test resistance at MYR2,400, and then
MYR2,450 in the next trading session," said a senior trading executive at a
Kuala Lumpur-based commodities brokerage.

  "Prices may move in a MYR2,250-MYR2,450 range next week," she said, adding
that a rise in crude oil may boost prices of commodities, including palm oil.

  The rise in CPO prices towards the end of trade Friday was also supported by
higher crude oil and soyoil markets, said an executive at a Singapore-based
global trading firm.

  September soyoil, which settled 31 points lower at 35.80 on the Chicago Board
of Trade Thursday, was trading 44 points higher at 36.24 cents a pound towards
the end of trade on the BMD.

  The New York Mercantile Exchange contract for light, sweet crude for October
delivery traded at 82 cents higher at $73.73 a barrel at 1120 GMT.

  Traders peg support for prices at MYR2,250, and then at MYR2,230/ton in the
near term.

  In the cash market, palm olein for January/February/March earlier traded at
$697.50/ton, $700/ton, FOB Malaysian ports, said a Singapore-based trading
executive. He added that the gap between bids and offers was $15/ton.

  No trades were reported during the afternoon session as volatility on BMD CPO
futures kept buyers on the sidelines. Cash CPO for prompt shipment was offered
MYR20 higher at MYR2,400/ton.

  Open interest for CPO futures fell to 85,126 lots from 88,822 lots Thursday.
Trading volume fell to 22,572 lots from 25,602 lots. One lot is equivalent to
25 tons.

Closing BMD CPO futures prices in MYR/ton at 1000 GMT:

Month      Close    Previous   Change   High    Low
Sep 09     2,380    2,340      Up 40    2,394   2,290
Oct 09     2,378    2,338      Up 40    2,378   2,259
Nov 09     2,345    2,301      Up 44    2,346   2,234
Dec 09     2,335    2,299      Up 36    2,337   2,228