05 February 2004	Thursday	13 Zilhaj 1424

KUALA LUMPUR, Feb 4: Malaysian palm oil was up on Wednesday on the strength of rival soyaoil but weak export estimates for January caused the benchmark contract to slip below the 1,800-ringgit-a-ton barrier broken in the morning.

At midday, the third-month crude palm oil futures on the Malaysia Derivatives Exchange, April, settled at 1,789 ringgit ($471) a ton, up 11 ringgit.

The contract briefly broke the 1,800 ringgit psychological resistance after the open, touching a high of 1,801, before pulling back on concerns over January exports.

Leading palm oil exports tracker Societe Generale de Surveillance said just before the market's open that palm oil shipments for last month were estimated at 892,507 tons, against 888,408 tons for December.

Traders had been expecting at least 900,000 tons for January.

"We did cross 1,800 ringgit but I guess the fundamentals did not warrant us to stay there," said a dealer.

Volume was average at 1,983 lots as the market opened after a four-day break. Other contracts rose eight to 14 ringgit.

A further consolidation in palm oil futures was possible in the afternoon if players thought Tuesday's rally in soyaoil futures on the Chicago Board of Trade was overdone, said traders.

Soyaoil and palm oil compete for the same export markets and their prices often move in step.

CBOT's key March soyaoil closed 0.88 cent a lb up on Tuesday - a huge gain compared to the typical rise of 0.30-0.50 cent a lb seen in recent weeks.

The contract for March saw bids at 1,795 ringgit and offers at 1,810. No trade was reported.-Reuters