KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivative
exchange ended lower Friday in volatile trade on profit taking and liquidation
of long positions, trade participants said.

  An inactive CPO cash market also weighed on futures, a Singapore-based broker
said.

  The benchmark September contract on the Bursa Malaysia Derivatives ended
MYR17 lower at MYR2,319 a metric ton, after trading in a range of
MYR2,296-MYR2,349/ton.

  Prices swung between positive and negative territory in intraday trading, and
the market will likely remain directionless in the short term as participants
wait for strong cues, an analyst from a Kuala Lumpur-based brokerage said.

  If the U.S. Department of Agriculture report due June 30 shows
higher-than-expected soybean area plantings in the U.S., CPO prices may fall,
traders and analysts said.

  However, a lag in palm oil output recovery may be positive for CPO prices,
UOB Kay Hian Regional Research said in a note Friday.

  A seasonal pick-up in palm oil output may be delayed by one to two months,
with production likely to remain weak until September, due partly yield stress
on oil palm trees after high production last year, and to heavier rains in the
December-February period.

  Over the week, CPO prices rose as much 8% as export prospects improved, with
cargo surveyor Intertek Agri Services reporting on Thursday Malaysian palm oil
shipments at 1.02 million metric tons during the June 1-25 period, up 3.9% from
May 1-25.

  "While exports are likely to see some improvements in the upcoming June 1-30
palm oil export data, the market has already priced this in, as seen in
(Thursday's) gain in CPO prices," a Singapore-based trader said.

  Cargo surveyors Intertek and SGS (Malaysia) Bhd. are likely to issue
estimates of Malaysia's June palm oil exports on Tuesday.

  In the cash market, palm olein for July/August/September shipment was offered
$2.50 lower at $705/ton, while October/November/December shipments were offered
$7.50 lower at $700/ton, according to a commodity brokerage.

  Cash CPO for prompt shipment was offered MYR20 lower at MYR2,350/ton.

  CPO futures trading volume fell to 11,558 lots from 13,813 lots Friday. Open
interest was at 64,504 lots, down from 67,254 lots Thursday. One lot is 25
tons.

Closing BMD CPO futures prices in MYR/ton at 1000 GMT:

Month      Close    Previous   Change   High    Low
Jul 09     2,345    2,362      Dn 17    2,367   2,325
Aug 09     2,325    2,342      Dn 17    2,353   2,301
Sep 09     2,319    2,336      Dn 17    2,349   2,296
Oct 09     2,315    2,335      Dn 20    2,342   2,299