* Prices touch 2,026 ringgit, the lowest since Sept. 11

* Palm may fall into 1,997-2,031 ringgit range-technicals

Malaysian palm oil futures reversed initial gains

to hit an 11-month low on Tuesday due to technical selling and as prices tracked

other vegetable oils lower due to concerns over demand.

By the midday break, the benchmark palm oil contract for October

on the Bursa Malaysia Derivatives Exchange had fallen 1.2 percent to 2,029

ringgit ($526) a tonne.

Prices earlier fell to 2,026 ringgit, their lowest since Sept. 11, and have

lost 4 percent so far this month. Traded volume stood at 21,977 lots of 25

tonnes each, well above the roughly 13,500 lots usually traded by midday.

"Our market opened higher but there was no follow-through," said a trader

with a foreign commodities brokerage in Kuala Lumpur. "Technical charting looks

bearish. Everything from soft commodities to precious metals and grains -- is

weak."

Uncertain demand outlook, exacerbated by economic worries and top buyer

China, overshadowed any upside from the impact of dry weather spurred by El

Nino, traders said.

Asian shares struggled to stay positive after downbeat economic data

pressured Wall Street ahead of a key U.S. jobs report that could provide

important clues to the timing of the Federal Reserve's interest rate increase.

"The sell-off is exacerbated by lower grains and negative news about China's

manufacturing sector," said a second palm trader. "August weather and production

look excellent and street sentiment is pointing lower (market) until demand and

grains stabilise."

In other vegetable oils, the U.S. August soyoil contract eased 0.5

percent in early Asian trade, while the most active soybean oil contract

on the Dalian Commodity Exchange slipped 0.2 percent.

Palm may fall into a range of 1,997-2,031 ringgit, said Reuters market

analyst Wang Tao.

Crude oil edged up following a sharp 5 percent drop in the previous session,

as high global production and a weakening economic outlook, especially in Asia,

prompted analysts to warn of further falls.

Palm oil, used as cooking oil and to make a range of foodstuffs from instant

noodles to margarines, as well as an additive in biodiesel, typically tracks

soyoil which is a common food and fuel substitute.

Palm, soy and crude oil prices at 0524 GMT

Contract Month Last Change Low High Volume

MY PALM OIL AUG5 2039 -17.00 2039 2040 2

MY PALM OIL SEP5 2028 -28.00 2025 2074 1473

MY PALM OIL OCT5 2029 -25.00 2026 2073 9692

CHINA PALM OLEIN JAN6 4652 -48.00 4596 4666 530128

CHINA SOYOIL JAN6 5428 -12.00 5364 5446 373146

CBOT SOY OIL DEC5 30.16 -3.50 30.11 30.38 2680

INDIA PALM OIL AUG5 404.80 -3.50 404.50 409.00 238

INDIA SOYOIL AUG5 567.25 -1.20 565.60 568.50 6590

NYMEX CRUDE SEP5 45.49 +0.32 45.29 45.58 9557

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

India soy oil in Indian rupee per 10 kg

Crude in U.S. dollars per barrel

($1 = 3.8610 ringgit)