KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended higher Thursday in speculative trade amid gains in regional
equity markets, crude oil and soyoil, trade participants said.

  The benchmark November contract on the Bursa Malaysia Derivatives ended MYR2
higher at MYR2,301 a metric ton, after trading in a narrow MYR2,301-MYR2,353 a
ton range.

  The contract traded in positive territory, tracking the overnight surge in
crude oil triggered an unexpected fall in U.S. oil inventories, while gains in
China's stock markets provided added support.

  Over the next few sessions, the CPO market may continue to look to China - a
major buyer of palm oil - for price direction, a Kuala Lumpur-based senior
trading executive said.

  "The rise in prices today is not sustainable as the bears are still strong in
the market," a Malaysia-based exporter said. "A fall in CBOT soyoil tonight may
very well push prices lower in the next trading session."

  Traders said prices may move between MYR2,240-MYR2,320/ton range.

  A dip in Malaysia's palm oil exports for the Aug. 1-20 period didn't push
rates lower as "the market had priced in the export slump in Wednesday's
broad-based sell-off," another Kuala Lumpur-based trading executive said.

  Cargo surveyors - Intertek Agri Services and SGS (Malaysia) Bhd. -  put
Malaysia's palm oil shipments 7%-11% lower from a month earlier to between
814,403-815,208 tons during the period.

  Malaysia had shipped some 875,330-913,153 tons of palm products for the same
period last month, the surveyors had said earlier.

  Exports declined as India and China, two key buyers, slowed purchases.

  "Both countries have bought quite a fair bit (of palm oil products), so, a
temporary slowdown is expected," said a Singapore-based trading executive.

  He added that purchases from India may pick up from September as the country
prepares to stock up ahead of the Diwali festival in October.

  In the cash market, palm olein for October/November/December traded lower at
$667.50/ton, while January/February/March was at $715/ton, FOB Malaysian ports,
said a Singapore-based trading executive.

  Cash CPO for prompt shipment was offered MYR20 lower at MYR2,380/ton.

  Open interest for CPO futures rose to 88,822 lots from 83,739 lots Wednesday,
while trading volume fell to 25,602 lots from 32,419 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
Sep 09     2,340    2,336      Up 04    2,396   2,340
Oct 09     2,338    2,320      Up 18    2,376   2,329
Nov 09     2,301    2,299      Up 02    2,353   2,301
Dec 09     2,299    2,273      Up 26    2,343   2,298