JAKARTA (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended lower Monday in thin trade that swung both ways as gains in
soyoil and crude oil clashed with weak palm oil export data, said trade
participants.

  The benchmark September contract on the Bursa Malaysia Derivatives ended
MYR25 down at MYR3,598 a metric ton, off an intraday high of MYR3,629/ton.

  "The worry with weak exports is that stocks will rise to an all-time high,
and since major palm oil buying countries aren't due to start buying until
August, the problem can only get worse," said a Malaysian trader.

  Stocks are expected to exceed 2 million tons in June as production is
expected up 10% and exports are down around the same percentage, said traders,
while exports continue to be dismal.

  Intertek Agri Services estimated Malaysia's June 1-30 palm oil exports at
1.09 million tons, down 10% on month.

  Another cargo surveyor, SGS (Malaysia) Bhd., estimated palm oil exports at
1.11 million tons, down 12.5% on month.

  China, a major market for palm oil, has already bought sufficient supplies
for the upcoming Olympic games and isn't expected to make big purchases until
it starts stocking up for winter, said a Singapore-based trader.

  India, another big market, will only start stocking up in August or
September, ahead of major festivals celebrated there.

  "On the local side, the fundamentals are weak. But prices are always getting
a temporary boost from external cues like soyoil and crude oil," said a Kuala
Lumpur trader.

  "As long as those cues remain bullish, palm oil prices won't be dragged below
MYR3,500/ton."

  The Malaysian cash market was mostly unchanged due to slow demand.

  Trades were reported for July/August/September at $1,230/ton.

  Cash CPO for prompt delivery was offered MYR10 lower at MYR3,620/ton.

  The trading volume was down at 6,022 lots, compared with 12,168 lots Friday.
Open interest stood at 43,929 lots, down from 45,140 lots Friday. One lot
comprises 25 tons.

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

Month      Close    Previous    Change    High     Low
Jul 08     3,540    3,570       Dn 30     3,595    3,540
Aug 08     3,587    3,605       Dn 18     3,617    3,570
Sep 08     3,598    3,623       Dn 25     3,629    3,580
Oct 08     3,605    3,621       Dn 16     3,631    3,590