03/06/2008 (The News, International), Kuala Lumpur - Malaysian crude palm oil futures inched higher on Monday as investors hesitated between betting on the overnight strength in US soy oil markets and selling on slower export demand.

Palm oil, which fell 3.5 per cent last week on weaker crude oil prices, was expected to rebound strongly on Monday but weak export data from cargo surveyors limited gains rekindled worries that food and bio-diesel demand may suffer.

The benchmark August contract on the Bursa Malaysia Derivatives Exchange ended up 11 ringgit at 3,509 ringgit ($1,090), struggling to recover from Friday’s close of 3,498 ringgit. The move in other traded months ranged between a rise of 28 ringgit and 140 ringgit declines.

Overall volumes fell to 7,393 lots of 25 tonnes each from the usual 10,000 lot levels. Exports of Malaysian palm oil products for May fell 6 per cent to 1,209,475 tonnes from 1,286,454 tonnes shipped in April, cargo surveyor Intertek Testing Services said on Saturday.

Another cargo surveyor, Societe Generale de Surveillance said palm exports in May fell 3.8 per cent to 1,264,757 tonnes. Chicago Board of Trade soybean oil futures July contract eased 0.7 per cent in Asian trade after last Friday’s strong gains. China’s Dalian September soy oil edged higher. In Malaysia’s cash market, crude palm oil for June shipment in the southern region was quoted at 3,540/3,560 ringgit. Trades were done at 3,530 and 3,550 ringgit.