KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivative
exchange ended lower Monday in rangebound, cautious trade.

  Prices remained in negative territory due to a lack of buying in the cash
market and an improvement in the outlook for India's summer-sown crops, market
participants said.

  The benchmark September contract on the Bursa Malaysia Derivatives ended
MYR57 lower at MYR2,262 a metric ton, after trading in a range of
MYR2,242-MYR2,289/ton.

  The India Meteorological Department said Monday that annual monsoon rains are
likely to advance to the rest of central India and parts of northwest by July
4.

  However, trading was thin on the BMD with players staying on the sidelines
ahead of a U.S. Department of Agriculture report due Tuesday.

  "If the soybean acreage is above the estimated soybean acreage of 78.3
million acres planted, this may weigh on CPO prices," a Kuala Lumpur-based
trader said.

  Traders said prices are likely to move between MYR2,230 and MYR2,350 in the
near term.

  Many traders are waiting for cargo surveyors Intertek Agri Services and SGS
(Malaysia) Bhd to issue export estimates of Malaysian palm oil shipments for
the June 1-30 period on Tuesday, they said.

  Market participants are hoping for a rebound in Malaysian palm oil exports,
expecting a rise between 3% and 5% on month to 1.18-1.25 million metric tons
for the June 1-30 period.

  Last week, CPO prices rose as much as 8% after Intertek reported palm oil
exports at 1.02 million tons during the June 1-25 period, up 3.9% on month.

  In other news, the India-based Vanaspati Consultative Committee urged the
Indian government to maintain its existing import duty on vegetable oil in the
upcoming Union Budget on July 6.

  Maintaining the status quo in import duty and tariff values for CPO and palm
kernel oil would ensure that prices of basic edible oils are kept at reasonable
levels for consumers, the committee said.

  Steady tariffs would also force the liquidation of huge stocks that have been
imported into the country, enhancing the availability of edible oils and
containing prices, it said.

  However, CPO bears were more concerned with the improving monsoon in India
and higher soybean acreage in the U.S.

  In the cash market, palm olein for October/November/December shipment was
traded at $690/ton and $687.50/ton, a Singapore-based trader said.

  Cash CPO for prompt shipment was offered MYR60 lower at MYR2,290/ton.

  CPO futures trading volume rose to 12,650 lots from 11,558 lots Friday. Open
interest was at 62,937 lots, down from 64,504 lots Friday. One lot is 25 tons.

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

Month      Close    Previous   Change   High    Low
Jul 09     2,275    2,345      Dn 70    2,300   2,270
Aug 09     2,270    2,325      Dn 55    2,292   2,250
Sep 09     2,262    2,319      Dn 57    2,289   2,242
Oct 09     2,262    2,315      Dn 53    2,285   2,245