KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended higher Monday, extending a three-day rally, on short covering
and tracking gains in other markets, trade participants said.

  The benchmark November contract on the Bursa Malaysia Derivatives ended MYR30
higher at MYR2,375 a metric ton.

  Prices eased from an intraday high of MYR2,402/ton in the afternoon on
concerns that overseas demand for edible oil may have weakened, traders said.

  Traders estimate Malaysia's palm oil exports for the Aug. 1-25 period may
have declined 12%-13% from a month earlier.

  "Judging by the export data so far, the market is expecting exports this
month to be around 1.2 (million)-1.3 million tons compared with July's 1.4
million tons," said a trading executive from Singapore.

  Still, CPO prices remained in positive territory despite the expected fall as
"prices are supported by a rally in global commodity markets," said a senior
trading executive from Kuala Lumpur-based commodities brokerage.

  September soyoil, which settled 53 points higher at 36.33 cents a pound on
the Chicago Board of Trade Friday, was trading 33 points higher at 36.66 cents
a pound towards the end of trade on the BMD.

  CPO prices could have risen more if they weren't capped by subdued demand in
the cash market, traders said.

  "Buying interest in the cash market has been sporadic as buyers are
purchasing on a hand-to-mouth basis," said a Malaysia-based exporter.

  "While the external market rally provided a strong support for CPO prices,
CPO prices didn't run up as much as investors are also afraid of a rise in palm
oil stocks if palm oil output outstrip demand," another trading executive from
Kuala Lumpur-based commodities brokerage said.

  Traders peg resistance for prices at MYR2,400, and then at MYR2,450 in the
near term.

  Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd put Malaysia
palm oil exports for the July 1-25 period between 1.01 million-1.12 million
tons. Both cargo surveyors are likely to release data for Aug. 1-25 Tuesday.

  In the cash market, palm olein for October/November/December shipment earlier
traded at $732.50/ton, $735/ton while January/February/March traded at
$737.50/ton, FOB Malaysian ports, said a Singapore-based trading executive.

  Cash CPO for prompt shipment was offered MYR70 higher at MYR2,470/ton.

  Open interest for CPO futures rose to 85,885 lots from 85,126 lots Friday,
while trading volume fell to 17,934 lots from 22,572 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     2,435    2,380      Up 55    2,460   2,435
Oct 09     2,409    2,378      Up 31    2,430   2,400
Nov 09     2,375    2,345      Up 30    2,402   2,364
Dec 09     2,365    2,335      Up 30    2,393   2,356