KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended higher Friday as bargain hunting towards the end of trade pulled
prices up. Meanwhile and expected drawdown of palm inventories due to steady
exports supported prices, trade participants said.

  The benchmark October CPO contract on the Bursa Malaysia Derivatives settled
MYR15 higher at MYR2,340 a metric ton after trading in a MYR2,306-MYR2,345/ton
range.

  Trading was a bit choppy, with prices seesawing between positive and negative
territory in early trade as "the bulls and the bears tussled to take charge of
the market," a trading executive from Kuala Lumpur-based commodities brokerage
said.

  Gains on the BMD were capped by subdued demand in the cash market, another
Kuala Lumpur-based trading executive said. "No trades were reported during the
day, as most buyers were not willing to commit to purchases with prices at
current levels."

  Cash CPO was offered MYR10 higher at MYR2,390/ton.

  "Even if Malaysia's palm oil production is likely to post a 5.7% rise (on
month) to 1.53 million tons, steady exports may have pushed stocks lower," said
a Malaysia-based exporter.

  Traders said "price-friendly" production and export estimates helped offset
falling crude and soyoil prices.

  Traders put Malaysia's palm oil exports during the August 1-10 period around
450,000 tons. Cargo surveyors SGS and Intertek estimated exports at 387,379 and
419,100 tons, respectively, for the same period last month.

  August soyoil futures on the Chicago Board of Trade, which ended 69 points
lower Thursday at 36.83 cents a pound fell 38 points on e-CBOT Friday to 36.45
cents a pound by the end of trade on the BMD.

  Light, sweet crude for September delivery on the New York Mercantile Exchange
was trading 70 cents lower, at $71.24 a barrel, at 1030 GMT.

  Prices may test MYR2,400 resistance if export and production data prove
positive for prices, trade participants said.

  In the physical market, palm olein for August was offered $10 higher at
$735/ton, with October/November/December at $725/ton.

  Trading volume for CPO futures fell to 11,528 lots from 16,049 lots Thursday,
while open interest fell to 78,807 lots from  80,930 lots. One lot is
equivalent to 25 tons.

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

Month      Close    Previous   Change   High    Low
Aug 09     2,378    2,363      Up 15    2,378   2,370
Sep 09     2,354    2,339      Up 15    2,365   2,325
Oct 09     2,340    2,325      Up 15    2,345   2,306
Nov 09     2,335    2,323      Up 12    2,336   2,300