KUALA LUMPUR (Dow Jones)--Asian cash palm oil prices were higherFriday, with products in Malaysia extending gains as the futures marketcontinued on its uptrend amid keen short covering interest.Indications of renewed demand from India for palm oil products alsolifted the Malaysian market, traders said.At the Bursa Malaysia Derivatives, the benchmark CPO futures contractwas at 1,538 ringgit ($1=MYR3.8) at 0717 GMT, up MYR25 from Thursday totouch its highest level in about two months.Traders said technical momentum turned bullish after the benchmarkcontract surpassed the MYR1,500 psychological resistance level Thursday.The breach of the key level triggered a wave of short covering as shortposition holders bought back to cut their losses."We're in a technically-driven market now and it appears that theremay be some room for the market to go up further. In terms offundamentals, there's nothing new to support this (rise)," a trader said.Traders said the sudden turnaround in the market has triggered somefresh demand from consumers, led by India.They said trading houses dealing with the Indian market were activelybuying palm oil products Friday.Indian demand for palm oil is usually strong at this time of the yearahead of major religious festivals later in the year, they said.The country has to rely heavily on imports because its owndomestically-produced oils won't be available until the fourth quarter,traders said.Atul Chaturvedi, vice president of Adani Exports, one of India'sbiggest trading houses, said Wednesday edible oil imports may rise in themarketing year beginning Oct. 1 because of lower domestic output.He said it was "highly unlikely" oilseeds production this year wouldmatch the 25 million tons produced in the last financial year ended March31.In the cash market, CPO for September shipment was offered atMYR1,585/ton, up MYR15 from Thursday, delivered basis in South Malaysia.RBD palm olein for September shipment was offered at $452.5/ton, up $5from Thursday,RBD palm oil for September shipment was offered at $442.5/ton, also up$5.In Indonesia, RBD palm olein in Jakarta was offered at 4,600 rupiah($1=IDR9,275), up IDR200 from Thursday.There were no prices for CPO in Medan so far, traders said.

$SIG$Form:INetSendTo: .$StorageTo: .RecipientGroupsExpanded: palmnews_group$Mailer: Lotus Notes Release 5.0.1b (Intl) 30 September 1999$MessageID: INetFrom: rodzi@commserv.mpob.gov.myPostedDate: 30-08-2004 11:06:31 AMRecipients: ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,CN=Nor Rizah Ismadi/OU=IT/O=MPOB@MPOB