Breaking News - RTRS - POLL- Malaysia's August palm stocks seen at 4-month top

KUALA LUMPUR, Sept 13 (Reuters) - Malaysia's August palm oil stocks probably hit four-month highs as a strong production recovery overpowered faltering overseas demand, a Reuters poll found on Monday.

A median poll of five plantation houses showed stocks in the world's No. 2 palm oil producer jumped 13.8 percent to 1.6 million tonnes -- the highest level since April, potentially
weighing on benchmark palm oil futures .

Output is expected to increase by 5.3 percent to 1.6 million tonnes according to the poll, thanks to yields improving in the second half of 2010. That compares to the start of the year when El Nino-driven drier weather prolonged yield stress for the oil palm trees that emerged from a production upswing in end-2009.

"We had enough rainfall and sunshine last month, that basically encouraged the fruiting. And the harvest (of palm fresh fruit bunches) was good prior to holiday in September," said one
poll contributor.

Harvesting on Malaysian estates picked up in August as foreign workers took leave for the Muslim fasting month of Ramadan and the Eid al-Fitr celebrations at its end. Plantation officials feared that a brewing La Nina weather condition, which often follows El Nino with heavier rains, may trigger floods and expose the palm fruits to excessive moisture.

Industry regulator Malaysian Palm Oil Board will issue August palm oil stocks, production, exports and imports data on Wednesday at 0445 GMT.

EXPORTS AT EIGHT-MONTH LOW
Malaysia's palm oil exports probably slumped 15 percent to 1.2 million tonnes -- the lowest since December -- after the world's second largest palm oil importer, China, reduced buying
on ample stocks at ports.

Traders expect exports to recover this month as top buyers India as well as China get restocked and prepare to meet demand for a string of festivals in October and November. But cargo surveyor Intetek Testing Services reported a rise of 1.1 percent in Malaysian exports between September 1 and 10, signalling that buyers are cautious over the recent price rally
in benchmark palm oil futures .

The poll showed crude palm oil imports from rival Indonesia could fall 44 percent to 50,000 tonnes in August. But Oil World said in a research note that imports may hit 90,000-100,000
tonnes as planters shipped out more to avoid a rise in Indonesian export taxes due in September.

"Refiners are taking opportunities to ship everything in by August, and next month onwards the imports might be slower," said a poll contributor in Kuala Lumpur.

Trader's Highlight

DJI-NEW YORK, Sept 13 (Reuters) - U.S. stocks advanced to their highest levels in five weeks on Monday, taking the S&P 500 index near the top of its summer range on upbeat Chinese factory data and new global banking rules.

The rally sent the S&P 500 above its 200-day moving average for the first time since early August, which was seen as a bullish sign.

The Dow Jones industrial average <.DJI> gained 81.36 points, or 0.78 percent, to 10,544.13. The Standard & Poor's 500 Index <.SPX> climbed 12.35 points, or 1.11 percent, to 1,121.90. The Nasdaq Composite Index <.IXIC> jumped 43.23 points, or 1.93 percent, to 2,285.71.

NYMEX-NEW YORK, Sept 13 (Reuters) - U.S. crude oil futures ended higher for a second consecutive session on Monday as uncertainty over when an Enbridge oil pipeline would resume flowing and upbeat Chinese economic data combined to push prices to their highest levels in more than four weeks.

Industrial production in China ramped up and money growth exceeded expectations in August, showing buoyant economic growth despite government efforts to clamp down on bank lending and property speculation.

On the New York Mercantile Exchange, crude for October delivery settled up 74 cents, or 0.97 percent, at $77.19. It traded from $76.36 to $77.50, the highest since Aug. 11's intraday high of $80.44.

CBOT-CHICAGO, Sept 13 (Reuters) - Chicago Board of Trade grain and soy complex close on Monday.

CBOT-SOYBEANS - September up 1-3/4 cents at $10.25-1/4 per bushel, November up 3-1/2 at $10.34-1/2. Support from higher corn and wheat, short-covering after Friday's decline, weak dollar and firm crude oil. Rally limited by seasonal pressure ahead of the harvest of a likely record-large U.S. soybean crop.

CBOT-SOYOIL - October up 0.06 cent at 41.42 cents per lb. Following soybeans and strength in crude oil, but backed off from early highs.

FCPO-KUALA LUMPUR, Sept 13 (Reuters) - Malaysian crude palm oil futures hit one-month highs on Monday after a long weekend holiday, on encouraging economic data from China and firmer crude oil, although prospects of a bumper U.S. soy crop weighed on prices.

China's industrial output grew by a larger-than-expected 13.9 percent last month, signalling further imports for the world's second largest consumer of palm oil and lifting most commodities.

The benchmark November crude palm oil contract on Bursa Malaysia Derivatives Exchange rose 1.2 percent, or 32 ringgit, to 2,676 ringgit ($860.7) per tonne, after touching an intraday high of 2,689 ringgit -- a level not seen since August 16.

REGIONAL EQUITIES-BANGKOK, Sept 13 (Reuters) - Most Southeast Asian stock markets gained on Monday, with Singapore and Malaysia marking multi-year peaks and the Philippines hitting a record high as encouraging economic data out of China spurred broad buying.

Singapore's Straits Times Index <.FTSTI> ended up 1.47 percent at its highest in 27 months, Malaysia's main share index <.KLSE> climbed 1.3 percent to around a 2-1/2-year high and Thailand <.SETI> had its biggest gain in two weeks.