KUALA LUMPUR, Sept 7 (Reuters) - Malaysian palm oil futures bounced on Wednesday as traders bet on demand shifting to the tropical oil as U.S. soybean crop conditions deteriorate and tighten soyoil supplies. Traders said the market was oversold the previous day on concerns about the worsening euro zone debt crisis that could stall global economic growth.
Prices also drew support from market views that Malaysian palm oil stocks in August likely fell for a second straight month as exports and local demand outstrip sluggish production during a key Muslim festival. Oil was up at just over $113 a barrel on Wednesday, underpinned by expectations of lower U.S. crude stocks after a storm disrupted production in the Gulf of Mexico, and optimism about a new support package for the U.S. economy. Vegetable oil markets gained after the U.S. Department of Agriculture's weekly crop progress report that showed just 56 percent of the soybean crop was rated good to excellent, down from 64 percent a year ago. http://af.reuters.com/article/commoditiesNews/idAFL3E7K70O720110907 '+'
