May 5, 2006	Friday	Rabi-us-Sani 6, 1427

KUALA LUMPUR, May 4: Malaysian crude palm oil futures ended lower on Thursday, giving up earlier gains, as traders expect overseas demand to remain subdued until China comes back to the market next week.

Earlier, the palm market had risen as much as 4 ringgit a ton after the currency weakened from its highest levels in more than eight years and bullish comments from Malaysia’s commodities minister Peter Chin.

The demand for refined oil for food use is thin. And the worries about ringgit still remain, said a Kuala Lumpur trader.

The minister’s comments are certainly a feel-good factor for the market, another trader added.

The palm oil market has traded lower in all previous sessions this week, during which it lost more than 1 per cent.

The benchmark third-month July contract on the Bursa Malaysia Derivatives ended 4 ringgit lower at 1,454 ringgit ($402.8) a ton. Overall volumes stood at 6,968 lots of 25 tons each.

In the physical market in Malaysia, sellers were offering crude palm oil cargoes at 1,430 ringgit a ton for spot shipments, but buyers were keen on deals at 1,425 ringgit. Some deals were finalised at 1,430 ringgit a ton.—Reuters