JAKARTA (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended lower Friday as weak export data confirmed current fears of
slowing demand amid swelling stocks, trade participants said.

  The benchmark September contract on the Bursa Malaysia Derivatives ended
MYR50 lower at MYR3,550 a metric ton.

  "Players booked profits in the morning as the first set of export data was
weaker than expected, but buying interest came in around MYR3,530-MYR3,540/ton
and that prevented palm prices from hitting the support level of MYR3,500,"
said a Malaysian trader.

  Malaysian palm oil exports during the June 1-20 period were estimated at
749,776 tons, down 10% from 830,873 tons during the same period last month,
according to cargo surveyor Intertek Agri Services.

  The market was expecting a figure in the range of 750,000-800,000 tons.

  With market players expecting even more dismal export data from cargo
surveyor SGS (Malaysia) Bhd. in the afternoon, its estimate of 754,539 tons
prompted prices to rebound slightly, coming off the morning lows.

  Palm prices fell within a narrow range of MYR3,535-MYR3,550/ton during
afternoon trade.

  "Palm prices would have fallen more, perhaps to the MYR3,500 level, if not
for a recovery in soybean oil prices," said a Kuala Lumpur-based trader.

  Soy oil prices lost more than 100 points in overnight trade, and extended
losses by another 100 points when the Malaysian trading day started. But prices
began to recover by afternoon, with soy oil down by only 10-20 points.

  Palm oil is a substitute for soy oil and tracks the latter's price movements
closely.

  With weak export estimates this month, traders tip palm oil stocks will reach
a record high of 2 million tons by end-June.

  "Prices really need to fall to the MYR3,500 level to attract buyers. Prices
are still a bit steep at the moment, and major palm oil buyers like India and
China are not biting," said another Kuala Lumpur-based trader.

  China bought 164,906 tons of palm oil during the June 1-20 period, down from
224,431 tons during the same period last month. India and Pakistan also slashed
palm oil buys in June, compared with May.

  The Malaysian cash market was quiet with no trades reported.

  Cash palm olein for July/August/September was offered $5 lower from Thursday
at $1277.50/ton.

  Cash CPO for prompt delivery was offered MYR70 lower at MYR3,570/ton.

  The trading volume on the BMD was moderate at 9,262 lots Friday, down from
13,660 lots Thursday. The open interest stood at 43,939 lots, down from 45,628
lots. One lot comprises 25 tons.

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

Month      Close    Previous    Change    High     Low
Jul 08     3,545    3,586    Dn 41        3,547    3,520
Aug 08     3,545    3,595    Dn 50        3,548    3,520
Sep 08     3,550    3,600    Dn 50        3,557    3,525
Oct 08     3,553    3,608    Dn 55        3,556    3,529