04/10/094 - JAKARTA (Bloomberg): Palm oil futures in Malaysia, the world'sbiggest exporter of the edible oil, may decline this week because ofslowing purchases from India and China.

Five out of seven traders, analysts and producers polled in Kuala Lumpurand Jakarta last Friday plan to sell the commodity, one said he would holdand one said he would buy.

"Buyers are cutting purchases after buying so much more oil in Septemberto build up stock for the festivities," said Eddy Lukas, a director at PTAsian Agri, which manages over 150,000 hectares of oil palm plantations inIndonesia. "China is on holiday this week, so traders there won't bemaking purchases."

Palm oil futures on the Malaysian Derivatives Exchange last week rose RM13, or 0.9 percent, to RM 1,433 (US$377) a metric ton. That was the firstincrease in three weeks.

India and China boosted their purchases of palm oil last month to preparefor festivities. Malaysia boosted its palm oil exports 11 percent to 1.33million tons in September compared with a month earlier, according to SGS(Malaysia) Sdn., which estimates port shipments.

India will celebrate the Durga Puja, a five-day festival starting on Oct.18, where households often spend more on food. Businesses in China areclosed for a week through Oct. 7 for national holiday.

Palm oil prices have fallen 20 percent this year, partly because ofconcern about a bigger soybean harvest. Palm oil is soybean's biggestrival in the edible oil market.

Soybean futures on the Chicago Board of Trade have fallen 50 percent froma 15-year high on April 5 to $5.345 a bushel on Oct. 1 because improvedprospects for crops in the U.S. and China.