JAKARTA (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended lower Thursday in thin, lackluster trade, trade participants
said.

  The benchmark September contract on the Bursa Malaysia Derivatives ended MYR3
down at MYR3,535 a metric ton, off the intraday high of MYR3,570/ton.

  A cautious market with players uncertain about the direction of palm oil
prices in the near term resulted in prices swinging both ways.

  "On the bullish side, you have news of bad weather impacting soy plantings
that should support palm prices. But on the flip side, you have weak local
fundamentals of palm oil production increasing until September amid
consistently weak palm exports," a Malaysian trader said.

  However, palm prices haven't swung as violently as in recent months, with
prices this week spiking up and down within a narrow range of MYR20-MYR50.
Previously, prices had spiked up and down by more than MYR100.

  "It seems losses and gains from the various cues have mostly been factored
into prices, so unless there is something completely new, like a natural
disaster, or other such catalysts, prices will likely hover around these
levels," said a Singapore-based trader.

  Traders tip palm prices to remain around MYR3,500-MYR3,600/ton in the next
few weeks.

  "Such a predictable price level makes for boring trade, but it provides
stability in palm oil prices that may encourage those who have stayed away due
to previous price volatility to come back into the market," said a Kuala
Lumpur-based trader.

  Trading volume was low at 4,994 lots, down from 10,844 lots Wednesday. The
open interest stood at 45,159 lots, up from 44,924 lots Wednesday. One lot
comprises 25 tons.

  The Malaysian cash market was lower, tracking BMD losses.

  Trades were reported for July/August/September palm olein at $1,215/ton, and
October/November/December palm olein at $1,210-$1,212.50/ton.

  Cash CPO for prompt delivery was offered MYR30 lower at MYR3,570/ton.

   (Closing BMD CPO futures prices in MYR/ton at 1000 GMT)

Month      Close    Previous    Change    High     Low
Jul 08     3,545    3,553       Dn 08     3,550    3,528
Aug 08     3,530    3,535       Dn 05     3,562    3,514
Sep 08     3,535    3,538       Dn 03     3,570    3,516
Oct 08     3,539    3,542       Dn 03     3,569    3,523