April 12, 2008	Saturday	Rabi-us-Sani 5, 1429

KUALA LUMPUR, April 11: Malaysian crude palm oil futures held steady on Friday, with investors torn between support from a looming vegoil supply squeeze and lacklustre demand from major consumers, India and China.

Palm oil has inched higher during the week as traders watched for developments in labour unrest at a big Brazilian export port and farmers’ protests in Argentina -- centres for soy trade.

On Thursday, the market got a boost when Malaysian palm industry data showed stocks eased from record levels.But disappointing Malaysian palm oil exports, which dropped as much as 41 per cent for April 1-10, have depressed the market somewhat, as traders had expected a pick up in demand from China and India this month.

Argentine farmers suspended a strike nine days ago to negotiate export taxed with the government, while a Brazilian port strike continued, although port authorities say soy export shipments have not been delayed.

Malaysia’s crude palm oil stocks fell 5.5 per cent in March from February’s record level, which could signal the start of a drawdown as China and India buy, some traders have said.

But exports of Malaysian palm oil in the first 10 days of April have been disappointing, with cargo surveyor Intertek Testing Service reporting a 41 per cent decline while Societe Generale De Surveillance estimated a 34.2 per cent drop.

There has been lack of buying in early April as China was busy selling its reserves and India was in the middle of crushing its domestic rapeseed crop, traders and analysts said.

In Malaysia’s physical market, crude palm oil for April shipment in the southern region was quoted at 3,450/3,470 ringgit a ton. Trades were done between 3,440 and 3450 ringgit.

—Reuters