* Palm oil futures slips from 1-week high as traders book profits * U.S. soybeans hits record high; palm oil rise muted on stock build up * Malaysia's August exports up 19.6 pct -SGS (Releads, adds details, updates prices) By Anuradha Raghu KUALA LUMPUR, Sept 4 (Reuters) - Malaysia palm oil futures closed lower on Tuesday after rising to their highest level in a week, as traders booked profits from a rally triggered by record high soybean prices. Prices also fell after traders priced in a rise in stocks in Malaysia due to higher production, although strong palm oil exports could help reduce inventories. "I think palm oil is rising on the back of soybeans and that's the main reason of the strength in palm oil," said a trader with a foreign commodities brokerage in Malaysia. "The unexpectedly high palm oil exports in August also provided some friendly sentiment. Previously we were expecting stocks at 2.3 million tonnes, now everybody has cut back stocks by 200,000-250,000 tonnes based on exports alone." The benchmark November 2012 contract on the Bursa Malaysia Derivatives Exchange lost 0.5 percent to close at 3,058 ringgit ($985) per tonne after touching 3,100 ringgit, a level last seen on Aug. 27. Total traded volume stood at 42,611 lots, much higher than the usual 25,000 lots. U.S. soybean futures climbed to a record high on Tuesday as falling exports from Brazil highlighted the decline in global supplies after poor production in South America and a historic drought in the United States. Higher soybean and soybean oil prices mean consumers are likely to turn to substitutes such as palm oil. Technicals remain bearish as palm oil faces a resistance at 3,093 ringgit per tonne, and will retrace to 3,049 ringgit, said Reuters analyst Wang Tao. But demand is likely to remain firm: Malaysia's palm oil exports surged 17.7 percent in August from a month ago, according to cargo surveyor Intertek Testing Services. Another cargo surveyor Societe Generale de Surveillance reported a steeper 19.6 percent increase for the same period, thanks to higher shipments of crude products and a demand recovery from major food buyers China and India. The El Nino weather conditions will likely be weak and short-lived, New Zealand scientists said on Tuesday, providing some relief to plantation owners in Southeast Asia. Oil prices rose for a fourth day to around $116 per barrel, supported by hopes for further stimulus measures from central banks in the United States and Europe, and a slow restart in the Gulf of Mexico after Hurricane Isaac. The tight global supply of soybeans also pushed other vegetable oil markets higher. By 1004 GMT, the most active U.S. soyoil contract for December delivery was 1.6 percent higher after touching the highest level since September 2011. The most active January 2013 soyoil contract on the Dalian Commodity Exchange closed 1 percent higher after touching a fresh contract high. Palm, soy and crude oil prices at 1004 GMT Contract Month Last Change Low High Volume MY PALM OIL SEP2 2940 -21.00 2936 2990 385 MY PALM OIL OCT2 3010 -17.00 2984 3055 3423 MY PALM OIL NOV2 3058 -15.00 3032 3100 22806 CHINA PALM OLEIN JAN3 8244 +44.00 8216 8352 319666 CHINA SOYOIL JAN3 10264 +92.00 10212 10308 557472 CBOT SOY OIL DEC2 57.97 +0.89 57.81 58.60 12166 NYMEX CRUDE OCT2 97.18 +0.71 96.01 97.37 35990 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 ($1 = 3.106 ringgit)

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