August 04, 2007	Saturday	Rajab 19, 1428

KUALA LUMPUR, Aug 3: Malaysian crude palm oil futures slipped 0.8 per cent on Friday in lacklustre trade as concerns over swelling supplies continued to pressure prices. Traders said the market awaited fresh leads, including production and supply data from an industry regulator and updates on exports from cargo surveyors due next week.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange fell 20 ringgit, or 0.8 per cent, to 2,582 ringgit ($746) per ton.

There has been a lack of buying interest as players want to assess the supply-and-demand situation from the end of July, going forward to the next few months, said a dealer.

But one thing is certain, palm oil companies have been reporting an increase in production and this is a cause for concern for the market.

July exports, stocks and output numbers will be released by the Malaysian Palm Oil Board on Friday and cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will release export data for August 1-10 on the same day.

Other traded months fell between 16 and 47 ringgit in overall trade, which more than halved to 5,218 lots of 25 tons each from 12,000 lots on a routine trading day.

Palm oil, used in products ranging from confectioneries and cosmetics to biofuels, is 6.6 per cent off an historic high of 2,764 ringgit reached in early June.

Malaysian palm oil stockpiles are likely to swell in July as production rises after months of slowdown, a Reuters poll showed on Monday.

In the physical market, crude palm oil for August shipment in Malaysia's southern region was quoted at 2,680/2,695 ringgit a ton. Deals were done at 2,695 ringgit.—Reuters