KUALA LUMPUR (Dow Jones)--Malaysia's palm oil exports during the August 1-15
period are estimated at 667,176 metric tons, up 2.1% on month, cargo surveyor
SGS (Malaysia) Bhd. said Monday.

  The estimate is within market expectations of a 1%-2% rise in exports.
Another cargo surveyor, Intertek Agri Services, put Malaysia palm oil exports
at 665,314 tons earlier in the day, up 0.9% on month.


  The following are the major items in the SGS estimate:

  (All figures in tons)

Product                     Aug. 1-15      July 1-15
RBD Palm Olein               313,393         301,479
RBD Palm Oil                  70,886          57,320
RBD Palm Stearin              76,430          46,085
Crude Palm Oil                90,197         135,977
Total*                       667,176         653,474

Major importers of Malaysian palm oil:

European Union                77,508        136,587
China                        220,207        241,414
U.S.                          72,923         13,300
India                         54,452         59,522
Pakistan                      65,070         46,671

*Palm oil product volumes don't add up to total as some products aren't
included.

(Adds trader's comments on price outlook, chart and reported trades on cash
palm olein)


  KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange fell as much as 4.6%, tracking a major sell-off in commodities and
regional stock markets due to uncertainty about the strength of the global
economic recovery.

  The new benchmark November contract on the Bursa Malaysia Derivatives ended
MYR102 lower at MYR2,335 a metric ton, off an intraday low of MYR2,325/ton.

  Monday's selling was triggered by a sharp drop in crude oil prices, which
fell below $66 a barrel in continued weakness following U.S. data Friday that
showed a sharp decline in consumer sentiment.

  Weaker-than-expected U.S. retail sales and the fall in consumer sentiment
sent risk-averse investors out of commodities, including palm oil, into the
dollar.

  The dollar was at $1.4135 to the euro at 1100 GMT.

  "Despite the bullish export numbers today, prices were sharply lower, as the
market was mainly driven by the bearish sentiment in external markets," said a
trading executive from a Kuala Lumpur-based commodities brokerage.

  Palm oil exports during the Aug. 1-15 period rose 2.1% on month to 667,176
tons, according to an estimate issued Monday by cargo surveyor SGS (Malaysia)
Bhd., slightly above market expectations for an increase of 1%-2%.

  Another surveyor, Intertek Agri Services, estimated the numbers at 665,314
tons, up 0.9% on month.

  "I think investors realized that the market ran way ahead of its
fundamentals. There is a huge disconnection between the markets and the real
economy. So a significant adjustment in prices is not surprising, especially
when most commodities, including CPO, are back to pre-financial crisis levels,
while global economies are not out of the woods yet," said Carey Wong, senior
plantation analyst at Singapore-based OCBC Investment Research.

  Trade participants said there is a potential for prices to fall further to
around MYR2,250 if the aggressive selling momentum continues.

  "Prices may move in a MYR2,250-MYR2,360 range in the near term," said another
Kuala Lumpur-based trading executives.

  Still, some traders believe the correction is temporary as palm oil's supply
and demand fundamentals remain supportive.

  In the cash market, palm olein for January/February/March shipment was
earlier traded at $730/ton, $735/ton, FOB Malaysian ports. No trades were
reported in the afternoon session as buyers remained on the sidelines, said a
Singapore-based trading executive.

  Open interest for CPO futures fell to 82,433 lots from 82,472 lots Friday.
Trading volume fell to 21,874 lots from 22,927 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     2,378    2,461      Dn 83    2,430   2,371
Oct 09     2,360    2,441      Dn 81    2,418   2,353
Nov 09     2,335    2,437      Dn 102   2,397   2,325
Dec 09     2,318    2,425      Dn 107   2,383   2,314