March 01, 2007	Thursday	Safar 11, 1428

KUALA LUMPUR, Feb 28: Malaysian crude palm oil futures recovered from earlier losses on Wednesday as firm prices in the physical market prompted strong buying towards the close, dealers said.

The benchmark third-month May contract on the BursaMalaysia Derivatives exchange finished up 9 ringgit at 1,960 ringgit ($560) a ton after hitting a low of 1,925 ringgit.

It was a very good recovery from 26 ringgit down during the day to closing 9 points higher, said one dealer.

The physical prices remained high, they did not follow the futures market, so at the end of the day it triggered panic buying.

The market had slipped during morning trade, pressured by fears that China would place controls on its markets to slow economic growth, the factor which sank the US soyaoil market on Tuesday.

In Malaysia's physical market, crude palm oil for March shipment was quoted at 1,950/1,960 ringgit per ton. Trades were done between 1,950 and 1,955 ringgit.

Exports of Malaysian palm oil products for Feb. 1-28 fell 10.1 per cent to 856,192 tons from 952,753 tons shipped between Jan. 1 and 31, cargo surveyor Intertek Testing Services said.

—Reuters