* Palm oil falls as much as 5.3 percent, tracking soybean
* Futures touch 2,827 ringgit, lowest since Aug 15
* Palm oil four-week target at 2,573 ringgit, eyes 2,387
(Updates prices, adds details)
By Anuradha Raghu
KUALA LUMPUR, Sept 18 Malaysian crude palm oil
futures fell to a one-month low on Tuesday, tracking losses in
soybean futures, which had posted their biggest daily drop in a
year on a better-than-expected harvest in the U.S. Midwest.
Palm oil futures lost as much as 5.3 percent after resuming
trading following a holiday break, as signs of better soybean
yields in the U.S. Midwest and favourable crop weather in Brazil
brightened global oilseed supply prospects.
"It's purely because of the grains complex. People are
cashing out on the weather, so that triggered a lot of short
orders, especially on the U.S. side," said a trader with a
foreign commodities brokerage.
"The palm oil market is under tremendous pressure."
The benchmark December 2012 contract on the Bursa
Malaysia Derivatives Exchange slid 125 ringgit to close at 2,861
ringgit ($936), off an earlier low of 2,827 ringgit, a level
last seen on Aug. 15.
Total traded volume stood at 57,092 lots of 25 tonnes each,
much higher than the usual 25,000 tonnes, as traders hedged
positions and booked profits.
Resilient demand for the edible oil failed to turned the
market around. Exports for the first half of September rose 12
percent from a month ago, cargo surveyer data showed.
Technicals were bearish as palm oil will fall to 2,573
ringgit per tonne over the next four weeks, Reuters market
analyst Wang Tao said based on a wave analysis.
Brent crude, which fell more than $5 a barrel late Monday in
a wave of late, high-volume selling, also dragged down palm oil
prices, analysts said.
"I think this is in line with the global commodities
sell-off," said Kenanga Investment's analyst Alan Lim Seong
"Because crude oil is the most representative of all the
major assets in the commodities, I think sentiment for palm oil
is very negative because of crude oil," he added.
Oil slipped to around $113 a barrel on Tuesday, extending
the previous session's steep slide, on concerns about slowing
global growth and signs that Saudi Arabia is pumping at high
rates to dampen prices.
In other vegetable oil markets, U.S. soyoil for December
delivery fell 0.4 percent by 1004 GMT. The most active
January 2013 soyoil contract on the Dalian Commodity
Exchange closed 2.8 percent lower after hitting a near 1-month
Palm, soy and crude oil prices at 1006 GMT
Contract Month Last Change Low High Volume
MY PALM OIL OCT2 2714 -159.00 2683 2791 470
MY PALM OIL NOV2 2803 -133.00 2776 2850 15560
MY PALM OIL DEC2 2861 -125.00 2827 2894 28982
CHINA PALM OLEIN JAN3 7744 -278.00 7706 7866 287684
CHINA SOYOIL JAN3 9820 -286.00 9756 9922 598680
CBOT SOY OIL DEC2 55.15 -0.24 54.82 55.72 13716
NYMEX CRUDE OCT2 96.31 -0.31 95.96 97.23 24402
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
Crude in U.S. dollars per barrel
(Additional reporting by Chew Yee Kiat; Editing by Clarence
(email@example.com; +603 2333 8040; Reuters