KUALA LUMPUR, Aug 1: Malaysian crude palm oil futures rose on Tuesday, on higher prices of rival soyaoil and hopes that the strong trend in exports will continue in August. Exports of Malaysian palm products in July stood at 1,225,495 tons, up 11.3 per cent from the 1,101,453 tons shipped in June, cargo surveyor Intertek Testing Services said.

Societe Generale de Surveillance, another surveyor closely watched by the market, said exports rose 11.8 per cent to 1,211,764 tons in July.

Looking into August, I think exports will continue to increase with good buying coming from China, European Union and Pakistan,” one dealer said.

By midday break, the benchmark third-month October contract on the Bursa Malaysia Derivatives ended up nine ringgit at 1,650 ringgit ($450) a ton.

These gains came on top of a rise of around 5 per cent in the third-month contract since Thursday.

Other contracts rose between two and 10 ringgit a ton. Overall volumes stood at 3,922 lots of 25 tons each.

Dealers said the third-month contract is eyeing 1,668 ringgit a ton level with resistance at 1,672 ringgit.

Palm oil output in Malaysia is estimated to fall 2.1 per cent to 1.3 million tons in July, a Reuters poll last week showed.

Traders say dry weather in peninsular Malaysia is likely to hit palm oil output in July.

But exports are likely to rise by 9 per cent to 1.2 million tons this month from the official 1,100,448 tons in June, according to the poll of five plantation houses.

Soyabean futures at the Chicago Board of Trade closed firm on Monday due to worries about the US crop, which was under stress from extreme heat in the US Midwest, traders said.

August soybeans closed 3 cents higher at $5.79 per bushel and new-crop November was higher at $5.99-3/4.

Soyaoil and palm oil are both used in products ranging from food and soap to cosmetics and biodiesel, so prices for the two commodities often move in tandem.

In the physical market, Malaysian crude palm oil for August shipment saw sellers at 1,600 ringgit a ton and bids at 1,590 ringgit a ton. Trades were done at 1,585 to 1,590 ringgit a ton.—Reuters