* Prices caught in tight range between 2,235 and 2,272
ringgit
* Malaysia's April palm stocks data due Friday
* Palm oil target modified to 2,190 ringgit -technicals
(Updates prices)
By Chew Yee Kiat
SINGAPORE, May 7 (Reuters) - Malaysian palm oil futures
ended higher on Tuesday, fuelled by bargain-hunting from the
previous day's nearly five-month low, although gains were capped
by a firm ringgit and key industry data due at the end of the
week.
A strong Malaysian ringgit, following the election
victory of the country's ruling coalition, limited the upside
for palm oil prices, as the ringgit-priced feedstock became more
expensive for overseas buyers and refiners.
Investors also avoided taking risky bets ahead of official
data for Malaysia's April palm oil stocks and output due on
Friday, which could provide further trading cues.
"We can see signs that prices are already bottoming. The
next few days will be crucial in determining market direction,"
said a dealer with a foreign commodities brokerage in Kuala
Lumpur.
The benchmark July contract on the Bursa Malaysia
Derivatives Exchange closed up 0.4 percent at 2,259 ringgit
($758) per tonne, after trading in a tight range between 2,235
and 2,272 ringgit. Prices fell as low as 2,230 ringgit on
Monday, a level last seen on Dec. 13.
Total traded volumes were thin, at 22,230 lots of 25 tonnes
each, compared to the average 35,000 lots.
Technicals showed a bearish target at 2,160 ringgit per
tonne has been adjusted to 2,190 ringgit for palm oil, based on
the speed of its fall and a small falling channel, said Reuters
market analyst Wang Tao.
Traders are pinning hopes on stagnant production to help
ease stock levels, which fell to 2.17 million tonnes by the end
of March.
Prices could gain further support if inventory falls below
the key psychological level of 2 million tonnes, although most
traders expect only a marginal drop, due to weak exports.
Malaysia's palm oil shipments in April fell as much as 5.6
percent from a month ago, cargo surveyor data showed.
In other markets, Brent crude oil fell below $105 per barrel
on Tuesday, after the risk premium caused by an Israeli air
strike on Syria faded.
In vegetable oil markets, the U.S. soyoil for July delivery
gained 0.4 percent in late Asian trade. The most-active
September soybean oil contract on the Dalian Commodities
Exchange rose 0.6 percent.
Palm, soy and crude oil prices at 1010 GMT
Contract Month Last Change Low High Volume
MY PALM OIL MAY3 2240 +11.00 2238 2240 62
MY PALM OIL JUN3 2260 +11.00 2238 2267 704
MY PALM OIL JUL3 2259 +9.00 2235 2272 10570
CHINA PALM OLEIN SEP3 5904 -18.00 5896 5964 491882
CHINA SOYOIL SEP3 7362 +44.00 7322 7432 1259046
CBOT SOY OIL JUL3 48.96 +0.20 48.69 49.10 5045
NYMEX CRUDE JUN3 95.75 -0.40 95.26 95.92 24469
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
