16/08/04, KUALA LUMPUR (Dow Jones)--Crude palm oil futures on the BursaMalaysia Derivatives ended higher Monday amid talk that the Indiangovernment was poised to reduce base prices for palm oil imports.The benchmark November CPO contract ended at 1,460 ringgit ($1=MYR3.8)a metric ton, up MYR30 from Friday, after moving between MYR1,422 andMYR1,478In the morning session, CPO futures barely budged, with tradingvolumes around half their usual levels.However, the market rose in the afternoon session, boosted by a surgein oilseeds and edible oil futures on India National Board of Trade, orNBOT.Traders said the rise in prices in India triggered speculation thatthe government would soon cut base prices, also known as tariff values,for palm oil.Base prices for palm oil, which are used by the government tocalculate import duties, have yet to be revised this year despite a steepdrop in global palm oil prices.However, ideas that higher edible oil futures in India was a precursorto a reduction in the base prices were misguided, traders said."If the NBOT is up, it actually means that India won't lower thetariffs. If they do reduce the (tariffs), the NBOT would be down," atrader said."So it doesn't make sense for people to say that because NBOT isup, the (tariffs) will be lower."A cut in the tariff values would make palm oil prices in Indiacheaper, not more expensive, traders said.The base price for crude palm oil is at $504/ton, for refined palm oilat $543/ton, crude palm olein at $532/ton and refined palm olein at$552/ton."The Indians have been buying hand-to-mouth all along. If thegovernment reduces the base prices, does it mean there will be a rush tobuy? I'm not so sure," a trader said.The trader said edible oil importers in India may prefer to wait fora clearer picture on the country's domestic oilseeds crops due to beharvested later this year before aggressively making forward purchases.Meanwhile, cargo surveyors Intertek Testing Services and SGS(Malaysia) Bhd. issued estimates for Malaysian palm oil exports in thefirst 15 days of August. However, the figures were well within marketexpectations and hadlittle impact on prices.SGS pegged Aug. 1-15 exports at 544,819 tons, up 4.4% from 521,655tons in the first 15 days of July.The figure was slightly lower than another estimate from IntertekTesting Services, which pegged Aug. 1-15 exports at 558,915 tons.