June 20, 2007	Wednesday	Jamadi-us-Sani 04, 1428

KUALA LUMPUR, June 19: Malaysian crude palm oil futures ended 0.9 per cent lower on Tuesday as players booked profits a day after the market surged on Indonesia's decision to raise export taxes for palm oil.

Dealers said prices were further undermined by rising concerns over a decline in exports.

The benchmark September contract on the Bursa Malaysian Derivatives Exchange settled down 21 ringgit or 0.9 per cent at 2,436 ringgit ($707) a ton after hitting a session low of 2,415 ringgit.

Other traded months fell between 17 and 39 ringgit in overall trade of 11,295 lots of 25 tons each.

The market has digested the export tax news but since the hike was not that significant, players have been taking some profit, said a trader at a leading plantation firm.

Traders said exports for the first 20 days in June, to be announced by cargo surveyors on Wednesday, are expected to be around 663,000 tons, about 15 per cent lower than May 1-20.

There is a high chance that exports might not be as strong as expected because importing countries are waiting for prices to fall further before committing to purchases,” said another dealer.

Palm oil prices are 13 per cent off an historic high of 2,764 ringgit reached two weeks ago on the back of strong foreign demand and dwindling supplies at home.

September palm oil on Singapore’s Joint Asian Derivatives Exchange was down $9.50 at $713.50 a ton in light trade.

In Malaysia's physical market, crude palm oil for June shipment in the southern region was quoted at 2,590/2,600 ringgit a ton. Trades were also done between 2,590 and 2,600 ringgit.—Reuters