JAKARTA (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended lower Tuesday as weak exports amid rising stocks weighed heavily
on prices, said trade participants.

  The benchmark September contract on the Bursa Malaysia Derivatives ended down
MYR23 at MYR3,575 a metric ton.

  The market opened in positive territory, tracking strong overnight soyoil
gains, but quickly descended into negative territory despite soyoil futures
extending gains by more than 80 points during the Malaysian trading day.

  "It's an indication that the market can no longer ignore weak local
fundamentals for strong external cues. This means that the market will be
pressured lower, perhaps back to the MYR3,500 level, or even the MYR3,400
level, as local fundamentals (of weak exports and high production) aren't
expected to turn around in the near term," said a Malaysian trader.

  But traders said such weak local cues are seasonal and are expected around
this time every year, so most losses would have been factored into prices.

  Also, such predictability is prompting little trading activity, as there
aren't any surprising catalysts that would boost prices either way. The low
trading volumes the past few days have helped cap losses, said some traders.

  Losses are also being capped by strong soyoil futures, they said.

  "The market would be trading much lower if not for soyoil providing support.
We should be seeing prices around the MYR3,400 level due to the bearish local
fundamentals, but prices are being kept above MYR3,500 instead," said a
Singapore-based trader.

  Intertek Agri Services Monday 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.

  Meanwhile, palm oil stocks are expected to rise to an all-time high of 2
million tons in June.

  The Malaysian cash market was lower, tracking losses in the BMD.

  Trades were reported for October/November/December at $1,220/ton.

  Cash CPO for prompt delivery was offered MYR50 lower at MYR3,570/ton.

  Trading volume was up at 7,328 lots, compared with 6,022 lots Monday. Open
interest stood at 44,053 lots, up from 43,929 lots Monday. One lot comprises 25
tons.

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

Month      Close    Previous    Change    High     Low
Jul 08     3,518    3,540       Dn 22     3,540    3,510
Aug 08     3,565    3,587       Dn 22     3,620    3,550
Sep 08     3,575    3,598       Dn 23     3,624    3,560
Oct 08     3,580    3,605       Dn 25     3,626    3,578