January 09, 2007	Tuesday	Zilhaj 18, 1427

KUALA LUMPUR, Jan 8: Malaysian crude palm oil futures closed down almost 4pc on Monday, dragged down by easing flooding and a lack of heavy rains. Dealers said the market also fell as players booked profits after a 2 percent rise on Friday.

The benchmark third-month March contract on the Bursa Malaysia Derivatives exchange finished 77 ringgit down at 1,884 ringgit ($536) a ton.

Weather in the south is improving and rainfall over the weekend was not as bad as was predicted, one dealer said.

Other traded contracts closed down between 45 and 100 Ringgit. Overall volume stood at 19,519 lots of 25 tons each.

Malaysia's southern region was last month hit by its heaviest rains in a century and the resultant flooding forced thousands of people to flee their homes, raising doubts over palm oil supplies.

Dealers said the country's palm oil output was expected to have declined by 20 to 30pc in Dec due to the rains and floods, from 1.55m tons produced in Nov.

In the physical crude palm oil market, January shipment was quoted at 1,930/1,935 ringgit a ton and trades were done between 1,935 and 1,940 ringgit.

—Reuters