VEGOILS-Palm oil ends flat, Malaysia stocks data eyed

* Risk appetite returns on better U.S. jobs data, Europe
optimism
* Higher stocks view erases gains
* Palm oil to drop to 2,880 ringgit -technicals
* Traders eye MPOB, USDA data for further cues

(Updates prices, adds details)
By Chew Yee Kiat
SINGAPORE, Aug 6 (Reuters) - Malaysian crude palm oil ended
flat on Monday as expectations of higher stocks in No.2 producer
Malaysia erased higher risk appetite on better-than-expected
U.S. jobs data.
Investor optimism also grew on talks of more stimulus
measures by European Central Bank to tackle the region's crisis
but caution remained as traders eye stocks data by industry
regulator Malaysian Palm Oil Board (MPOB) due later this week.
"In the near term, the upcoming MPOB's July inventory data
could swell above the psychological range of 2 million tonnes,"
said Alan Lim Seong Chun, research analyst with Malaysia's
Kenanga Investment Bank, in a note.
The benchmark October palm oil futures on the Bursa
Malaysia Derivatives Exchange ended flat at 2,918 ringgit ($940)
per tonne. Palm oil posted a 0.3 percent loss last week, its
fourth straight weekly loss.
Traded volumes stood at 21,893 lots of 25 tonnes each,
thinner than the usual 25,000 lots.
Technicals look bearish with Reuters market analyst Wang Tao
saying palm oil will fall to 2,880 ringgit as a downtrend from
3,161 ringgit has resumed.
Market players are waiting for fresh trading cues from a key
supply-demand report from the U.S. Department of Agriculture
later this week that will quantify soy crop damage from the
worst drought in 56 years.
A lower quality of soybean crop contributing to a drop in
soybean oil supply could shift more vegetable oil demand to the
cheaper palm oil.
Weather concerns closer to Southeast Asia are also in focus
as El Nino's dry weather pattern could return by end of the year
and hurt production for top palm oil producers Indonesia and
Malaysia.
Malaysian palm oil exports in July suffered a double-digit
fall from a month ago, reflecting slowing demand from top food
buyers China and India, according to cargo surveyor data.

Oil retreated from last week's gains, easing towards $108 a
barrel on Monday as investors took profits and awaited more
clues on the health of the global economy and the outlook for
oil demand.
In other vegetable markets, by 1008 GMT, the most active
U.S. soyoil contract for December delivery had lost 0.6
percent and the most active January 2013 soyoil contract
on the Dalian Commodity Exchange edged up 0.6 percent.

Palm, soy and crude oil prices at 1011 GMT

Contract Month Last Change Low High Volume
MY PALM OIL AUG2 0 +0.00 2890 0 0
MY PALM OIL SEP2 2898 -9.00 2890 2920 1580
MY PALM OIL OCT2 2918 +0.00 2909 2938 12218
CHINA PALM OLEIN JAN3 7788 +46.00 7696 7820 232664
CHINA SOYOIL JAN3 9530 +52.00 9426 9558 596184
CBOT SOY OIL DEC2 52.58 -0.30 51.84 52.85 7873

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne

($1=3.105 Malaysian ringgit)

(Editing by Niluksi Koswanage)