August 09, 2007	Thursday	Rajab 24, 1428

KUALA LUMPUR, Aug 8: Malaysian crude palm oil futures ended 0.9 per cent higher on Wednesday, halting a 3-day losing streak, as traders returned to take up new positions and awaited key data on production and exports.

But fears that rising demand might not keep up with the current seasonal increase in production kept a lid on gains, dealers said.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange settled up 22 ringgit, or 0.9 per cent, at 2,500 ringgit ($724) per ton.

It is only proper that the market recovers some ground after consistently falling for the past few days, said a leading trader.

Players are coming back into the market to assess the fundamentals once the key data is released. 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 rose between 13 and 30 ringgit, except for the spot month and distant January 2008, which were down.

Overall volume stood at 11,306 lots of 25 tons each.

Palm oil, used in products ranging from confectioneries and cosmetics to biofuels, is nearly 10 per cent off an historic high of 2,764 ringgit reached in early June.Asia's vegetable oil demand for the festival season has been dampened by surging prices and a seasonal upswing in production from Southeast Asia could result into swelling stockpiles.

Buying for the holy month of Ramazan has been subdued from South Asia and the Middle East while China has cut down imports as it focuses on soybeans, traders said.

October palm oil on Singapore's Joint Asian Derivatives Exchange was untraded by 1042 GMT.

In the physical market, crude palm oil for August shipment in Malaysia's southern region was quoted at 2,530/2,540 ringgit a ton. Deals were done at 2,525 and 2,530 ringgit.—Reuters