October 12, 2006	Thursday	Ramazan 18, 1427

KUALA LUMPUR, Oct 11: Malaysian crude palm oil futures closed lower on Wednesday, pulled down by record high stocks unveiled by the country's crop agency and a decline in the prices of crude oil.

But the market cut some losses towards the close because of strong export performance announced by cargo surveyors.

The benchmark third-month December contract on the Bursa Malaysia Derivatives ended down five ringgit at 1,553 ringgit a ton ($420) after hitting a low of 1,543 ringgit.

Other traded contracts finished down between six and 23 ringgit. Overall volume stood at 14,812 lots of 25 tons each.

Crop agency Malaysian Palm Oil Board said stocks rose 6.84 percent at the end of September at 1.799 million tonnes.

Oil sank below $58 a barrel on Wednesday, nearing an eight-month low as traders grew impatient with Opec's haggling on details of an output cut and after the West's energy watchdog cut its oil-demand growth forecast.

Palm oil is increasingly tracking crude oil prices, driven by rapid growth in the global biofuel industry based on vegetable oils, which are seen as a cheaper option to fossil fuels.

In the physical crude palm oil market, October shipment was quoted at 1,517.50/1,520 ringgit a ton. Trades were done between 1,500 and 1,520 ringgit a ton.—Reuters