Asian Crude Palm Oil Steady; Likely Lower Output To Support

  KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange were steady Friday after moving
both ways, amid short covering and weaker soyoil futures, with production in March likely lower.

  The new benchmark June contract on the Bursa Malaysia Derivatives ended MYR1 higher at MYR3,398 a metric ton after
trading in a MYR3,385/ton-MYR3,418/ton range.

  Palm oil has risen 1.4% this week as strong export estimates by cargo surveyors raised demand prospects for the
tropical oil that is used as a key feedstock to make consumer products ranging from soaps to biscuits and cooking oil.

  Intertek Agri Services and SGS (Malaysia) Bhd. said March 1-15 shipments rose 37% and 42%, respectively, to 697,804
tons and 701,536 tons.

  Rising export demand for the cooking oil comes at a time when production is expected to remain weak as oil palm trees
rest after a bumper harvest boosted CPO output to a record 18.9 million tons last year in Malaysia.

  The market may advance further next week as CPO output in March could fall 6%-12% from February's level of 1.19
million tons, a Perak-based trading executive said.

  Palm oil may trade in a MYR3,390-MYR3,450/ton range next week, she said.

  Separately, Thailand may import 40,000 tons of CPO this year to make up for a domestic shortage and to curb inflation,
 the Nation said in a report, quoting Thai Commerce Minister Boonsong Teriyapirom.

  Thailand is the world's third-largest producer of palm oil and its annual production of around 2 million tons is
generally sufficient to meet domestic demand.

  But dry weather in major palm-growing areas in southern Thailand has sapped yield potential, lowering production and
driving up cooking oil prices.

  In 2011, Thailand bought around 30,000 tons of CPO, a key raw material used to make consumer products ranging from
noodles to biscuits and soap, from world no. 2 producer Malaysia, to address a shortage.

  In the cash market, refined palm olein for April shipment was traded at $1,142.50, free on board Malaysian ports, a
physical market broker in Singapore said.

  Cash CPO for prompt shipment was offered MYR30 higher at MYR3,380/ton.

  Open interest on the BMD was 131,180 lots, versus 128,182 lots Thursday. One lot is equivalent to 25 tons.

  A total of 24,583 lots of CPO were traded versus 23,594 lots Thursday.

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

Month   Close  Previous  Change   High    Low
Apr'12  3,400     3,393     +07  3,410  3,385
May'12  3,400     3,403     -03  3,422  3,386
Jun'12  3,398     3,397     +01  3,418  3,385
Jul'12  3,392     3,391     +01  3,409  3,378

  -By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com

  (END) Dow Jones Newswires
  03-16-12 0700ET
Copyright (c) 2012 Dow Jones & Company, Inc.

Asian Crude Palm Oil Marches Higher On Surging Malaysian Exports

  KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange continued their recent rally
Thursday, reaching a nine-month high for a third consecutive day, fueled by a surge in exports and gains in other
commodity markets.

  The benchmark May contract on the Bursa Malaysia Derivatives ended 0.5% higher at MYR3,403 a metric ton after rising
as much as 0.9% to MYR3,415/ton, the highest since June 6.

  May soyoil on the Chicago Board of Trade was 0.6% higher at 55.13 cents pound as trade ended on the BMD.

  Palm oil prices are up nearly 6% this year, due partly to a surge in Malaysia's outbound sales in the first 15 days of
 March. Cargo surveyor Intertek Agri Services Thursday pegged a 37% rise during March 1-15 from the previous month to
697,804 tons, while another surveyor pegged exports at 701,536 tons during the period, an increase of 42%.

  "The strong export numbers gave a big boost to the benchmark prices in Malaysia," a trading executive in Rotterdam
said.

  The surge in export demand may slow a build-up in Malaysian palm oil stocks and boost prices on Malaysia's derivatives
 exchange.

  Malaysia's inventories of 2.06 million tons at end-February, announced by the Malaysian Palm Oil Board this week,
disappointed the market, which expected stocks to have fallen to 1.95 million tons.

  Support for palm oil also came from worries that higher U.S. corn acreage will keep soy acreage unchanged and could
tighten the global supply of vegoils.

  Private crop forecaster Informa recently pegged corn plantings at 95.5 million acres for 2012-13 crop year beginning
September, up from 91.9 million acres planted in 2011-12.

  The firm projected 2012-13 soy plantings at 75.1 million tons, just above the 75 million acres in 2011-12.

  In the cash market, refined palm olein for July/August/September shipment was traded around $1,145-$1,150/ton, free on
 board Malaysian ports, a physical market broker in Singapore said.

  Cash CPO for prompt shipment was offered MYR20 higher at MYR3,350/ton.

  Open interest on the BMD was 128,182 lots, versus 126,775 lots Wednesday. One lot is equivalent to 25 tons.

  A total of 23,594 lots of CPO were traded versus 24,003 lots Wednesday.

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

Month   Close  Previous  Change   High    Low
Mar'12  3,420     3,376     +44  3,420  3,420
Apr'12  3,393     3,380     +13  3,411  3,385
May'12  3,403     3,385     +18  3,415  3,383
Jun'12  3,397     3,378     +19  3,409  3,375

  -By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233; shie-lynn.lim@dowjones.com

  (END) Dow Jones Newswires
  03-15-12 0657ET
Copyright (c) 2012 Dow Jones & Company, Inc.