September 12, 2006	Tuesday	Sha'aban 18, 1427

BANGKOK, Sept 11: Malaysian crude palm oil futures ended lower on Monday after the Malaysian Palm Oil Board (MPOB) released higher than expected stock and output figures, dealers said.

In Kuala Lumpur, the benchmark third-month November contract on the Bursa Malaysia Derivatives exchange was down 14 ringgit at 1,539 ringgit a ton ($419) after trading as low as 1,528 ringgit.

The market dropped because of the MPOB report, a Malaysian dealer in Kuala Lumpur said.

That was why the market slipped to 1,528 ringgit. But, at below 1,530 ringgit, there was no follow-through selling so the market recovered, but still closed at minus 14 ringgit, another dealer said.

Other traded contracts were down 13 ringgit to 26 ringgit.

Overall volume was 13,024 lots of 25 tons each.

Output of crude palm oil in Malaysia, the world's largest producer of the commodity, was 1,537,236 tons in August, up 11.79 per cent from July, the MPOB said in a statement.

Production in August 2005 was 1,362,777 tons.

Palm oil exports for August this year were 1,311,427 tons, up 5.96 per cent from July, the MPOB said.

August 2005 exports were 1,168,326 tons.

Stocks of palm oil at the end of August 2006 were 1,684,046 tons, up 6.56 per cent from the end of July, the MPOB said.

Stocks at the end of August 2005 were 1,333,868 tons.

Dealers said they expected the market to move in a narrow range of between 1,520 ringgit and 1,555 ringgit on Tuesday.

The market tomorrow will depend on how Chicago performs as well, another dealer said.

Soyaoil and palm oil compete for exports and their prices often move in step.—Reuters