KUALA LUMPUR, April 12: Malaysian crude palm oil futures closed 0.6 per cent lower on Thursday as soyaoil declined and players booked profits after a rally that boosted prices to eight-year highs.

Dealers said the market was expected to bounce back because of poor palm oil supplies and strong exports.

The benchmark third month June contract on the Bursa Malaysia Derivatives Exchange finished down 13 ringgit at 2,175 ringgit ($631) a ton after hitting a low of 2,155 ringgit.

Malaysian palm oil prices surged 40 per cent in 2006, boosted by biodiesal demand, and analysts expect the market to rise around 20 per cent this year.

Malaysia's end-March palm oil stocks fell 10.6 per cent to 1.34 million tons while exports jumped to almost 30 per cent during the month and production failed to keep pace, the Malaysian Palm Oil Board said on Tuesday.

Malaysian palm oil usually tracks the US soyaoil market because both commodities are used in products ranging from food and cosmetics to biodiesel.

Malaysia's exports are picking up after months of slowdown because of strong demand from the world's top buyers, China and India. — Reuters