Malaysian crude palm oil futures fell two percent on Monday after export estimates for the period from February 1 to 20 came in below market expectations. A substantial rise in rival Chicago soyoil on Friday was largely ignored. Leading cargo surveyor Societe Generale de Surveillance's estimate of a 5.1 percent rise in February 1-20 palm oil exports from a month earlier - versus market expectations of nearly 20 percent - dampened the market, dealers said.

The benchmark third-month crude palm oil contract on Bursa Malaysia Derivatives, May, settled 27 ringgit down at 1,315 ringgit ($346.05) a tonne, the day's low.

Other traded contracts were down 25 to 27 ringgit.

Volume stood at a moderate 4,665 lots of 25 tonnes each.

Soyoil futures on the Chicago Board of Trade closed up for a second straight day on Friday, powered by a rally in soybeans on worries that dry weather in South America was cutting yields. March soyoil rose 0.25 cent to 20.07 cents per lb, with the back months up 0.24 to 0.32 cent.

Soyoil and palm oil compete for similar export destinations and their prices often move in step.

In physical crude palm oil, the February/March contract saw bids at 1,320 ringgit a tonne and offers at 1,325 ringgit in Malaysia's southern and central regions. Bids/offers closed at 1,340/1,350 ringgit on Friday.

Trades were reported at 1,345-1,325 ringgit in both regions.

PALM OIL FUTURES:

February (south): 1325

Open/High/Low: 1340/1345/1315

Previous close: 1350

PALM OIL PHYSICALS:

May (third month): 1315

Previous settlement: 1342

FUTURES: Benchmark third-month May down 27 ringgit at 1,315 ringgit ($346.05) a tonne.

PHYSICALS: February offers down 25 ringgit a tonne.

Copyright Reuters, 2005