KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended lower Thursday, tracking declines in regional stock markets
while sluggish trade in the cash market kept prices in negative territory.

  The benchmark November CPO contract on the Bursa Malaysia Derivatives ended
MYR11 lower at MYR2,346 a metric ton after trading in a MYR2,335-MYR2,369/ton
range.

  Prices were volatile, moving higher at the opening before slipping into the
red until the end of trade.

  "CPO prices over the last few trading sessions have been mainly guided by
external markets as there's little impetus for prices to move higher," said a
senior executive from a Kuala Lumpur-based global trading firm.

  "There was some bargain hunting in the market, which may have moved prices
from the intraday low of MYR2,335," she said.

  Traders said CPO prices may continue to move in a narrow MYR2,300-MYR2,380
range in the near term.

  Weak demand in the cash market also pulled prices lower, said trade
participants.

  "Most buyers were reluctant to make any purchases as there's a long holiday
coming up. Directionless trade on BMD was another reason buyers remained on the
sidelines," said a Malaysian-based exporter.

  He said cash CPO prices were a bit high, prompting cash market players to use
the futures market to hedge their risks.

  "There are some cash market players who might have signed contracts for palm
oil products, so they're now using the futures market to hedge risks," said the
Malaysia-based exporter.

  Cash CPO prices for prompt shipment are currently at a premium to the
benchmark BMD CPO price as "market participants are expecting palm oil stocks
to be lower," said a Singapore-based trading executive.

  Cash CPO for prompt shipment was offered at MYR2,460/ton.

  Traders and analysts expect Malaysia's palm oil stocks to be lower as palm
oil output is likely lower in August, which is positive for CPO prices.

  Traders peg immediate support at MYR2,320, then MYR2,300, with resistance
likely at MYR2,380, then MYR2,400.

  In the cash market, palm olein for January/February/March shipment was traded
slightly lower at $720/ton and $722.50/ton, FOB Malaysian ports, said the
Singapore-based trading executive.

  Open interest for CPO futures fell to 82,390 lots from 83,675 lots
Wednesday. Trading volume also fell to 11,130 lots from 15,048 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     2,436    2,449      Dn 13    2,460   2,435
Oct 09     2,377    2,385      Dn 08    2,400   2,367
Nov 09     2,346    2,357      Dn 11    2,369   2,335
Dec 09     2,337    2,350      Dn 13    2,359   2,328