April 01, 2008	Tuesday	Rabi-ul-Awwal 23, 1429

KUALA LUMPUR, March 31: Malaysian crude palm oil futures tumbled 4.5 per cent on Monday as global vegetable markets faltered on expectations of a bearish report on prospective soy and corn plantings in the United States.

Palm oil prices toppled from a strong rebound in the middle of last week as traders and analysts expect US soy acreage for the year to rise nearly 72 million acres, potentially easing the tightness in edible oil supplies the world over.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange dropped as much as 160 ringgit to 3,390 ringgit ($1,062) per ton before settling down 155 ringgit at 3,395 ringgit.

Crude palm oil was on a recovering trend but a sharp decline on Friday raised concerns over sustainability of its recent run-up, said Tee Sze Chiah, an analyst with local investment bank Aseambankers, in a research note.

Other traded months fell between 126 and 153 ringgit. Overall trade stood at 11,437 lots of 25 tons each.

Traders said a healthy export momentum prevented palm oil prices, which are 24 per cent off historic highs of 4,486 ringgit hit earlier in the month, from plummeting further.

Sales of palm oil products for March rose 14.8 per cent to 1,261,295 tons, cargo surveyor Intertek Testing Services said on Monday while Societe Generale de Surveillance reported an increase of 11.1 per cent to 1,223,904 tons.

The Reuters poll of analysts forecasted a jump of 13 per cent to 71.721 million acres from 2007. farm strike after a brief truce for talks with the government failed to resolve differences over soy export levies supported soyaoil prices in Chicago and Dalian commodity markets, which were lower earlier on Monday.

In Malaysia’s physical market, crude palm oil for March shipment in the southern region was quoted at 3,400/3,420 ringgit a ton. Trades were done to 3,400 ringgit.—Reuters