KUALA LUMPUR, July 20: Malaysian crude palm oil futures climbed 0.8 per cent on Friday, helped by firmer prices of rival soybean oil and brisk buying ahead of the weekend.

But estimates from cargo surveyors, which showed a further decline in exports, weighed on prices.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange settled up 21 ringgit, or 0.8 per cent, at 2,506 ringgit ($735) a ton.

Soyabean oil's rise hangs over the palm oil market and this has prompted players to take up positions before the weekend as they do realise that palm oil is not going to crash in the near future,” said a leading trader.

But the decline in exports is worrying since the festival demand should have settled in by this time but it has not and this has impacted the market to some extent. Exports of Malaysian palm oil products for July 1-20 fell 2.6 per cent to 644,332 tons from 661,626 tons shipped between June 1 and 20, cargo surveyor Intertek Testing Services said on Friday.

Another cargo surveyor, Societe Generale de Surveillance, said exports fell 5.5 per cent to 638,163 tons over the same period.

Industry officials earlier said palm oil demand will pick up from July as buyers lock in supplies for a slew of festivals like the Chinese Mid-Autumn festival and the Muslim holy month of Ramadan, both due in September.

But traders now say high prices could push consumers to delay purchases until the end of July. Palm oil is more than 9 per cent off an historic high of 2,764 ringgit reached in early June.

In overall trade of 9,130 lots of 25 tons each.

Chicago Board of Trade soybean futures ended higher on Thursday, recovering from a weak start as weather kept prices volatile.

The soyaoil market closed 0.11 to 0.23 cent per lb firmer; August was up 0.13 cent at 37.36. In electronic trade during Asian hours on Friday, the contract gained a further 0.08 cent to 37.71 cents per lb.

Malaysian palm oil usually takes its cue from the US soyaoil market because both commodities are used in products ranging from cookies and cosmetics to biodiesel.

October palm oil on Singapore's Joint Asian Derivatives Exchange gained $9.75 to $733.25 a ton, with distant months also rising in quiet trade.

In the physical market, crude palm oil for July shipment in

Malaysia's southern region were quoted at 2,620/2,630 ringgit a ton. Trades were done between 2,620 and 2,625 ringgit.—Reuters