06 February 2004	Friday	14 Zilhaj 1424

KUALA LUMPUR, Feb 5: Malaysian palm oil futures closed lower on Thursday after a choppy session, with news that India was likely to cut edible oil imports in the quarter ending in April due to a bumper summer crop prompting some late selling.

Traders said players also booked profit from earlier gains ahead of fresh crop estimates from private forecaster Ivan Wong, expected on Friday.

The benchmark third position contract breached the 1,800 ringgit a ton psychological barrier for the second straight day but again finished below that level.

The third-month crude palm oil futures on the Malaysia Derivatives Exchange, April, ended down four ringgit at 1,790 ringgit ($471.05) a ton, after trading between 1,783 and 1,808 ringgit.

Overall market volume was a thin 2,569 lots, down from Wednesday's 5,450 lots.

"The market had no other leads, so the Indian news was a good excuse for players to trim positions," said one trader.

India, the world's top edible oil buyer, is likely to cut purchases by about 10 per cent from a year ago in the quarter ending in April as a bumper summer crop is seen lifting domestic supplies, traders said on Thursday.

The country, one of the main buyers of Malaysian palm oil, is expected to buy 1.03 million tons in the April quarter, down from 1.14 million tons in the year-ago period, they said.

Sandeep Bajoria, chairman of the Central Organization for Oil Industry and Trade, said local supplies would rise to about 590,000 tons in March and 670,000 tons in April, from 370,000 tons and 390,000 tons in the respective months of the previous year.

February crude palm oil saw bids/offers at 1,830/1,835 ringgit a ton in the southern and central regions, with trade reported at 1,840-1,830.-Reuters