28/07/2010 (Reuters), Jakarta - Malaysian crude palm oil closed up 0.4 percent on Wednesday on concern that rains will slow output, which countered expectations of slowing demand from India.

Concern remained that a brewing La Nina weather event, which brings more rains to palm oil producing Southeast Asia and hotter weather to soybean growing U.S. and South America, will affect output.

The benchmark October contract KPOc3 on Bursa Malaysia's Derivatives Exchange settled up 10 ringgit to 2,495 ringgit ($782) a tonne. Overall volume stood at 10,785 lots at 25 tonnes each.

"Uncertainties about palm oil supply remain the driver for CPO prices," said a trader with a local commodities brokerage.

However, expectation that India, the world's largest vegetable oil buyer, may slow buying because of a possible increase in its domestic oilseed crops weighed the market, the trader said.

A Reuters technical analysis showed that the contract was expected to fall towards 2,403 ringgit per tonne. For a 24-hour technical outlook on palm oil, click on [ID:nSGE66R03R].

Oil slipped towards $77 after an unexpected increase in U.S. crude stockpiles and a drop in U.S. consumer confidence deepened doubts about recovery in energy demand. [O/R]

Other vegetable oil markets were mostly higher. U.S. soyoil for August delivery BOQ0 edged up 0.34 percent and the most active January 2011 soybean oil contract DBYH1 on the Dalian Commodity exchange rose 0.05 percent.

Benign conditions for the developing U.S. crop and the prospect of large harvests, have limited gains in soybeans markets.

For analysis on soyoil's premium over Asian palm oil, click on [ID:nSGE66J08S]

INDONESIA PALM TRADES
The Jakarta-based PT KBN Nusantara, formerly known as the state marketing centre, sold 9,000 tonnes of crude palm oil in an auction on Wednesday with the top price at 7,559 rupiah ($0.839) per kg, against 7,456 rupiah per kg on previous day.[OILS/TEND]

Producers in Medan, home to Indonesia's main palm oil export port of Belawan in Sumatra island, did not hold any palm oil auction.

Refiners in Jakarta offered refined, bleached, deodorised (RBD) palm olein -- used as cooking oil -- unchanged at 7,900 rupiah per kg from previous day.

PT Astra Agro Lestari Tbk (AALI.JK: Quote) sold palm kernel oil at $1,095 a tonne, ex-factory Jambi.

Palm, soy and crude oil prices at 1000 GMT Contract Last Net chg Settle Open High Low Volume PALM OIL AUG0 2571 + 16.00 2555 2547 2572 2546 495 PALM OIL SEP0 2528 + 23.00 2505 2505 2530 2500 1388 PALM OIL OCT0 2495 + 10.00 2485 2471 2502 2470 6515 PALM OIL NOV0 2483 + 15.00 2468 2472 2492 2464 2070 CBOT soyoil* 38.62 + 0.06 38.56 N/A 38.71 38.53 N/A NYMEX crude** 77.39 -0.11 77.50 N/A 77.74 76.88 N/A Palm oil prices in Malaysian ringgit per tonne * Soy oil in U.S. cents per pound ** Crude in USD per barrel

($1=3.1900 Malaysian Ringgit; 9,012 Rupiah)