March 15, 2006	Wednesday	Safar 14, 1427

KUALA LUMPUR, March 14: Malaysian palm oil ended down on light selling pressure on Tuesday after touching six-week lows the previous day, as players awaited clues on March 1-15 exports to decide direction.

A slide in US soyaoil also weighed on prices, palm oil dealers in Kuala Lumpur said.

The benchmark third-month May crude palm oil contract on Bursa Malaysia Derivatives closed down 0.4 per cent, or six ringgit, at the day’s low of 1,439 ringgit ($387.45) a ton. Its high was 1,447.

Palm oil has fallen for 11 straight trading days since soaring to a 11-month peak of 1,512 ringgit on Feb. 27.

The last time a third-month contract matched current lows was on Jan. 25, when it fell to 1,435 ringgit.

Dealers had pegged support for May futures at 1,450 ringgit until last week. But that was undermined by Friday’s data showing record closing stocks of palm oil for February and weak exports for March 1-10.

Dealers said March 1-15 export data due from cargo surveyors on Wednesday would determine the market’s level for this week.

Talk swirled on Tuesday that Intertek Testing Services (ITS), one of the two exports surveyors watched by the market, was likely to report about 510,000 tons for the first half of March compared with the 547,950 estimated for Feb. 1-15.

The ITS estimate for March 1-10 was 272,685 tons.

If what we’re hearing is true, then the exports have really picked up in the last five days, said a trader. That shows a better chance of cutting back on this month’s stock levels if the production is not already too high.

The official Malaysian Palm Oil Board shocked the market last month by estimating a record stock level of 1,645,476 tons for end-February, up 6.86 per cent from end-January.

Other traded months for palm oil closed up one ringgit to down eight.

Overall volume totalled 5,349 lots of 25 tons each, versus Monday’s 7,788 lots.

Dealers said fresh losses in US soyaoil during Tuesday’s electronic trade also weakened palm oil.

May soyaoil on the Chicago Board of Trade fell 0.45 cent to 23.71 cents a lb at Monday’s close, recovering only 0.04 cent in Tuesday’s eCBOT session.

In physical trade of crude palm oil, buyers/sellers for March closed at 1,420/1,425 ringgit a ton in Malaysia’s southern and central regions.

Trades ranged from 1,415 to 1,422.50 ringgit at the close.

—Reuters