KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange rose by as much as 4.9% Monday as traders covered short positions and
rallying crude and soyoil lent support to prices, trade participants said.

  The benchmark October CPO contract on the Bursa Malaysia Derivatives ended
MYR106 higher at MYR2,295 a metric ton after trading in a MYR2,225-MYR2,296
range.

  "The market also saw speculative buying interest coming in when prices surged
above the MYR2,200 level," said a Kuala Lumpur-based trading executive. "Day
traders took advantage of the MYR100 gain in CPO as prices had been stuck in
sideways trade for a while."

  Analysts and executives from oil palm firms estimate Malaysia's July palm oil
output likely rose by only 1% as lower output in the oil palm-growing state of
Sabah is expected to weigh on the country's overall palm oil production.

  "The external cues have turned bullish for prices," a Kuala Lumpur-based
trader said, but he added that fundamentals could also be in play as palm oil
stocks may be lower on higher export demand.

  The Malaysian Palm Oil Board previously estimated June palm production at
1.45 million tons, up 3.6% compared with the previous month.

  The MPOB is expected to announce Malaysia's July palm oil output, stock level
and export volume next Monday.

  The rise in CPO prices Monday was supported by firm crude oil and soyoil
markets during Asian trading hours, said Singapore-based trader.

  August soyoil rose 13 points on the Chicago Board of Trade to settle at 35.06
cents a pound. The August contract was 84 points higher at 35.90 cents/lb on
e-CBOT by the end of trade on BMD.

  Crude oil also traded higher, gaining $1.18 on Globex at $70.63 at 1027 GMT.

  In the cash market, palm olein for September and January/February/March
shipment were both traded at $705/ton, FOB Malaysian ports, a Singapore-based
trader said.

  Cash CPO for prompt shipment was offered MYR70 higher at MYR2,350/ton.

  Trading volume for CPO futures fell to 14,122 lots from 20,535 lots Friday,
while open interest rose to 83,906 lots from 82,346 lots. One lot equals 25
tons.

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

Month      Close    Previous   Change   High    Low
Aug 09     2,340    2,274      Up  66   2,360   2,320
Sep 09     2,315    2,205      Up 110   2,315   2,250
Oct 09     2,295    2,189      Up 106   2,296   2,225
Nov 09     2,287    2,184      Up 103   2,288   2,216