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VEGOILS-Palm rises to 1-1/2 mth high; marks biggest monthly gain since April 2009

(Updates prices, adds SGS data)

* Malaysia's September palm oil exports rise 16-17 pct m/m -

cargo surveyors

* Palm may climb to resistance level of 2,224 ringgit -

technicals

By Anuradha Raghu

KUALA LUMPUR, Sept 30 (Reuters) - Malaysian palm oil futures

rose to their highest in one-and-a-half months on Tuesday and

recorded their biggest monthly rise in more than five years, as

strong export demand and gains in Chinese soyoil markets lifted

sentiment.

Despite the swift recovery in palm prices this month,

underlying concerns about swelling oilseed supplies capped the

rally and pulled palm to post its biggest quarterly drop in two

years.

Exports of Malaysian palm oil products for September rose

16.3 percent from a month earlier to 1,497,828 tonnes, cargo

surveyor Intertek Testing Services said, thanks to robust demand

from India, China and Europe.

Another cargo surveyor Societe Generale de Surveillance

showed that exports for the same period rose 16.5 percent. Both

surveyors reported bigger crude palm oil shipments compared to

August.

The recovery in export demand would help prevent another

jump in inventories in the No.2 producer, traders said.

"The market is holding very well on the back of exports and

the Dalian which is up a bit," said a trader with a foreign

commodities brokerage in Kuala Lumpur. "It's in a trading range

between 2,170 and 2,250 ringgit."

"But most commodity prices are in the doldrums, especially

the whole grain complex. I don't think palm oil will be spared."

The benchmark December contract on the Bursa

Malaysia Derivatives Exchange rose to 2,222 ringgit in late

trade, the highest since Aug. 11, before settling at 2,216

ringgit ($676) per tonne at Tuesday's close, a 1.3 percent gain.

Palm prices have gained nearly 15 percent this month to

notch their biggest monthly gain since April 2009, after

plunging to a more-than-five-year low of 1,914 ringgit in early

September.

The tropical oil, however, has lost 8.7 percent in the third

quarter of this year to post its biggest quarterly loss since

2012.

Total traded volume stood at 43,225 lots of 25 tonnes each,

above the usual 35,000 lots.

Technicals indicate palm oil may climb to a resistance at

2,224 ringgit, a break above which will lead to a further gain

to 2,262 ringgit, according to market analyst Wang Tao. He added

that the first support is at 2,163 ringgit and the second at

2,125 ringgit.

Chicago soybeans eased and were on track for their

biggest quarterly loss in six years, with a more than 34 percent

drop, on pressure from mounting U.S. supplies and a

strengthening dollar.

Higher supplies of soybeans for crushing would drag on

soyoil prices and narrow palm's discount to the rival edible

oil, and could potentially prompt buyers to switch over food and

fuel needs to soy.

In vegetable oil markets, the U.S. soyoil contract for

December fell 0.5 percent in late Asian trade. The most

active January soybean oil contract on the Dalian

Commodities Exchange gained 1.1 percent.

Market players will also be keeping a close watch on

Malaysia's palm oil inventories in September, after stocks

jumped 22 percent to 2.05 million tonnes at end-August.

A recovery in export demand in September after Malaysia

scrapped export duties on the crude grade raised hopes that

stockpiles would not continue to surge.

"End stocks are very important -- it could be marginally

higher, or we could see a drawdown in September," the trader

added.

Indonesia, as expected, also scrapped its crude palm oil

export tax for October.

The top producer on Tuesday also approved a plantations bill

that aims to maximise land usage and open up the sector to

smallholders, but dropped a controversial foreign ownership

clause that had worried oil palm planters.

In other markets, Brent oil steadied above $97 a barrel on

Tuesday, supported by U.S. and Chinese economic data, but was

still set for its deepest quarterly drop in more than two years

because of strong supply and a surging dollar.

Palm, soy and crude oil prices at 1016 GMT

Contract Month Last Change Low High Volume

MY PALM OIL OCT4 2233 +31.00 2223 2237 119

MY PALM OIL NOV4 2228 +34.00 2207 2232 5010

MY PALM OIL DEC4 2216 +28.00 2204 2222 21988

CHINA PALM OLEIN JAN5 5240 +72.00 5176 5250 558414

CHINA SOYOIL JAN5 5898 +62.00 5890 5958 313544

CBOT SOY OIL DEC4 32.79 +0.60 32.66 33.02 6874

INDIA PALM OIL SEP4 474.20 +0.60 473.10 474.40 276

INDIA SOYOIL OCT4 616.90 -0.85 616.40 620.00 17950

NYMEX CRUDE NOV4 94.75 +0.18 94.18 94.90 22978

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

India soy oil in Indian rupee per 10 kg

Crude in U.S. dollars per barrel

($1 = 3.279 Malaysian ringgit)

($1 = 6.1395 Chinese yuan)

($1 = 61.71 Indian rupees)

(Editing by Subhranshu Sahu and Sunil Nair)