KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended lower Tuesday on speculative trade while lower export estimates
weighed on prices, said trade participants.

  The benchmark November CPO contract on the Bursa Malaysia Derivatives ended
at MYR2,303 a metric ton, down MYR67 from Friday's settlement after trading in
a narrow MYR2,299-MYR2,335 range. Markets in Malaysia were closed Monday for a
public holiday.

  Prices were sharply lower at the opening in reaction to a massive selloff in
regional equities and commodities Monday. But selling pressure on BMD eased as
external markets rebounded, said a Kuala Lumpur-based trading executive.

  A rebound in soyoil futures and crude oil during Asian trading hours
supported prices, said trade participants.

  September soyoil, which settled 108 points lower on the Chicago Board of
Trade Monday at 34.99 cents a pound, was trading 31 points higher toward the
end of trade on BMD.

  Weaker export estimates for Malaysia's August palm oil exports led to
spillover weakness in prices.

  Cargo surveyor Intertek Agri Services estimated exports down 5% on month at
1.33 million tons while another surveyor, SGS (Malaysia) Bhd., put exports at
1.3 million tons, 7.9% lower on month.

  "Judging by the decline in demand in the first 25 days of August, the market
had expected exports to drop for the full month. But a weaker than expected
number from SGS prompted prices to fall, which prompted speculative selling,"
said another Kuala Lumpur-based trading executive.

  Palm oil shipments declined in August as India and the E.U. slowed purchases.
Exports to India fell 19% on month to 92,032 tons, with a 38% on-month decline
to 160,961 tons for shipments to the E.U., data from SGS showed.

  Sluggish trade in the cash market led to spillover weakness in prices, with
buyers waiting on the sidelines as "cash CPO is expensive," said another Kuala
Lumpur-based trading executive.

  Prices may move between MYR2,234-MYR2,350 in the near term, trade
participants said.

  In the cash market, palm olein for January/February/March was earlier traded
at $700/ton and $702.5/ton, FOB Malaysian ports, said a Singapore-based trading
executive.

  Cash CPO for prompt shipment was offered MYR55 lower at MYR2,405/ton.

  Open interest for CPO futures fell to 83,466 lots from 84,123 lots Friday
while trading volume rose to 17,402 lots from 13,564 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     2,395    2,440      Dn 45    2,405   2,350
Oct 09     2,335    2,381      Dn 46    2,354   2,322
Nov 09     2,303    2,370      Dn 67    2,335   2,299
Dec 09     2,296    2,360      Dn 64    2,322   2,295