March 11, 2008	Tuesday	Rabi-ul-Awwal 2, 1429

SINGAPORE, March 10: Malaysian crude palm oil futures closed 1.2 per cent lower on Monday, largely erasing losses of 5 per cent after data showing strong exports and lower output prompted traders to step up buying.

A 45.5 per cent rise in Malaysian palm oil exports during March 1-10 and 13.8 per cent lower production in February more than offset signs of weaker Chinese demand following Beijing’s plan to release soyaoil from its reserves.

The data on exports was too good for the market to ignore,said one Malaysian trader. “It shows that demand is still there. The benchmark May contract on the Bursa Malaysia Derivatives Exchange closed 45 ringgit a ton lower at 3,665 ringgit, after tumbling to as low as 3,500 ringgit earlier in the day -- its lowest since mid-February.

Palm oil, used for cooking and in products ranging from biscuits to biofuels, is down 18 per cent since it hit an historic high of 4,486 ringgit a ton on March 4.

Cargo surveyor Societe Generale de Surveillance said exports of Malaysian palm oil products for March 1-10 rose 45.5 per cent to 527,408 tons from 362,366 tons shipped between Feb. 1 and 10.

Intertek Testing Services said exports in the same period rose 54 per cent to 516,499 tons.

Official crop agency Malaysian Palm Oil Board said crude palm oil output fell 13.78 per cent to 1,227,967 tons in February, from 1,424,245 tons a month earlier.

But traders said the market could remain weak in coming days as there were no signs of strong Chinese buying.

May soybeans slid by the daily 50-cent limit, or 3.6 per cent, to $13.58-3/4 per bushel. May soyaoil sank by its 2-cent limit to 61.33 cents per lb, and May soyameal fell $12.00 to $338.20 per ton.

In the physical market, palm olein was traded in the range of $1,225 and $1,265 a ton for July, August and September shipments, traders said.—Reuters