KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange rose 2.3% Thursday in volatile trade Thursday as investors covered
short positions, amid spillover support from a rebound in regional stock
markets and soyoil.

  The benchmark October CPO contract on the Bursa Malaysia Derivatives settled
MYR55 higher at MYR2,515 a metric ton after trading in a MYR2,446-MYR2,521/ton
range.

  Prices were very choppy in early trade, swinging between positive and
negative territory in speculative trade, as waves of buying and selling kept
prices volatile.

  Traders said prices may move to a MYR2,450-MYR2,520 range in the near term
should buying interest continue, with resistance pegged at MYR2,550.

  "Prices rose higher towards the end of trade on speculative, fresh buying,"
said a Kuala Lumpur-based trading executive, adding a rebound in soyoil and
crude supported prices.

  September soyoil futures on the Chicago Board of Trade, which ended 42 points
higher Wednesday at 38.58 cents a pound, rose higher by 20 points on e-CBOT
Thursday to 38.78 cents a pound by the end of trade on the BMD.

  September crude on Nymex bounced back above $70 a barrel to trade $1.40
higher at $71.53 a barrel at 1017 GMT.

  "The overall market sentiment remains bullish on prices, as the market is not
expecting fantastic growth figures in Malaysia's palm oil output, which is
positive for CPO prices," said a senior plantation analyst from a Kuala
Lumpur-based foreign brokerage firm.

  Traders also said prices may be rangebound in the next trading session ahead
of Malaysia palm oil export data for the August 1-15 period.

  Cargo surveyors are due to release data for Malaysia's August 1-15 palm oil
exports Monday.

  Separately, Indonesian plantation firms PT Astra Agro Lestari and PT
Perkebunan Nusantara sold 8,500 tons and 7,500 tons of CPO respectively,
offered in a government auction.

  In the cash market, cash palm olein for October/November/December was traded
higher at $745/ton, $747.50/ton, $752.50/ton and $755/ton, free on board
Malaysian ports, a Singapore-based trading executive said.

  Cash CPO was offered unchanged at MYR2,500/ton.

  The open interest for CPO futures fell to 79,627 lots from 81,146 lots
Wednesday while the trading volume rose to 20,657 lots from 17,914 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
Aug 09     2,520    2,495      Up 25    2,520   2,520
Sep 09     2,525    2,475      Up 50    2,530   2,464
Oct 09     2,515    2,460      Up 55    2,521   2,446
Nov 09     2,489    2,442      Up 47    2,501   2,435