June 17, 2008	Tuesday	Jamadi-us-Sani 12, 1429

KUALA LUMPUR, June 16: Malaysian crude palm oil futures rose 1 per cent on Monday as soyaoil markets from the United States to China gained on weather worries, but slowing demand for tropical vegetable oil weighed on the market.

Weaker crude oil prices have also made palm oil less attractive as a biofuel alternative, tempering gains of up to 23 per cent made so far this year.

The benchmark September contract on the Bursa Malaysia Derivatives Exchange settled up 37 ringgit to 3,727 ringgit ($1,140) per ton after going as high as 3,750 ringgit.

Overseas soyaoil markets are the only factor holding up palm oil. It’s a dangerous time to be in the market because at any moment it will topple over, said a trader with a local brokerage.

Other traded months rose between 25 and 65 ringgit.

Overall trade stood at 10,448 lots of 25 tons each.

Exports of Malaysian palm oil products for June 1-15 fell 13 per cent to 558,630 tons from 642,538 tons shipped between May 1 and 15, cargo surveyor Intertek Testing Services said on Monday.

Another cargo surveyor Societe Generale de Surveillance said exports in the same period fell 9 per cent to 600,674 tons.

With the way exports are going, there seems to be a real lack of buyers from China, India and other traditional markets, said another trader.

Palm oil reserves will certainly go beyond 2 million tons this month. Stocks of palm oil in Malaysia rose 6.9 per cent to 1,913,360 tons in May due to production outpacing overseas demand, official crop agency Malaysian Palm Oil Board said last week.

In Malaysia’s cash market, crude palm oil for June shipment in the southern region was quoted at 3,725/3,750 ringgit. Trades were done at 3,720 and 3,730 ringgit per ton.—Reuters