29/08/2013 (The Star) - The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets.

FUNDAMENTALS
* Malaysian palm oil futures climbed to the highest in more than two months on Tuesday as concerns lingered over dry weather damaging soy crops in the U.S. Midwest.

* U.S. corn and soybean futures fell on Tuesday as forecasts for slightly wetter-than-expected weather across the U.S. Midwest prompted a round of profit taking following sharp gains the previous two sessions, traders said.

* Brent crude leaped to a six-month high on Tuesday, up more than $3 in heavy trading to top $114 a barrel as Western powers considered a military strike against Syria following last week's suspected chemical weapons attack.

MARKET NEWS
* Geopolitical uncertainty over a possible U.S.-led military strike against Syrian President Bashar al-Assad's forces pushed oil prices to a six-month high on Tuesday and sent equities worldwide sharply lower.

* Oil surged on Tuesday, with benchmark Brent crude hitting six-month highs, and gold rallied in safe-haven buying as the West mulled a military strike on Syria after U.S. accusations the country used chemical weapons on civilians.

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