Malaysian palm oil prices slipped at midday after profit-taking erased part of sharp gains scored in recent trading days, traders said. "The morning fall was due to some profit-taking. There was selling because of a technical correction to recent sharp gains," said a trader who expects more downward correction if there are no fresh leads. By the close of the morning session, third month September futures contract was eight ringgit down at 2,500 ringgit a tone after trading between 2,487 and 2,503. Morning trade was slow with only two futures contracts traded. Turnover stood at 313 lots at midday.

Asian palm oil prices seen firm

Asian palm oil prices are expected to be firm this week on increased buying due to weak regional currencies and anticipation of bullish Malaysian official crop data for June, traders said. Indonesian prices were expected be stable at current levels, but traders warned of possible smuggling after the government raised taxes on exports ofcrude palm oil (CPO) and its by-products. Prices should be firmly supported by a weakening Malaysian ringgit as well as export tax hikes in Indonesia, Singapore traders said. They also expect the ringgit to remain soft this week. "With a weak ringgit, people are optimistic that prices are likely to rise further to test the all-time high for third month," one trader said. At 0518 GMT, the ringgit was quoted around 4.26 to the dollar. Malaysia's benchmark, September futures contract closed on Friday at 2,508 ringgit a tonne. The record high for the third month contract was 2,562 ringgit set on May 18. "Recent price gains in Malaysia may make its supplies less attractive," a Singapore trader said. "But if some traditional buyers need to buy urgently, then they have to buy for whatever the prices are." India, which last week reduced its import duty on edible oil to 15 per cent from 25 per cent, is likely to buy more ahead of a Hindu festival. "It is a lean period over there (India) and harvest will not come inuntil October, so they need to import more oil to overcome short supply," a Malaysian trader said.

Tokyo coffee futures end mixed

Yen-based arabica coffee futures ended mixed in thin trade on Monday, while robusta coffee futures ended lower across the board. Although price falls were limited by the yen's fall against the dollar after Japan's ruling Liberal Democratic Party suffered a major setback in Sunday's elections, losses in the New York market on Friday undermined sentiment, traders said. "Activity was purely limited to position-adjustments," an analyst at a commodity broker said. A lack of crop-threatening cold weather thinned trading interest, they said. Arabica coffee futures ranged from down 10 yen per bag, or69 kgs, to 200 yen higher. Benchmark May fell 10 yen to end at 26,080 yen. Estimated volume was 2,097 lots. Robusta contracts ranged from 10 yen to 120 yen per 100 kg lower. Benchmark May was down 120 yen to end at 23,520 yen. Estimated volume was 861 lots.

Pakistan gold pricesseen rising

Pakistan's gold prices rose in the previous week amid high domestic demand and dealers said on Monday they expect it to rise further. "The market has opened lower (on Monday) as some individuals are booking profits on the sharp rise in gold prices," one dealer said. But he added that a bearish stock market, falling rates of dollar in the kerb market, a glut in the real estate market and economic uncertainty sparked by Pakistan's nuclear tests would keep gold in demand. "There might be a temporary dip in the market but soon buying will outsrip selling and the prices will rise again," the dealer said.

Tokyo precious metals end mixed

Tocom precious metals ended mixed on Monday. The dollar traded above 142 yen after prime minister Ryutaro Hashimoto in the afternoon formally announced his intention to resign. Hashimoto will stay on until his successor is named at the ruling party's meeting scheduled for July 21. Traders said they will closely watch political developments and the impacton Financial markets for clues to Tocom market direction. Silver futures ranged from 0.6 yen per 10 grams down to 1.1yen up. Benchmark June ended off 0.6 yen at 233.5 yen.

Platinum futures ranged from 10 yen per gram down to 10 yen up. Benchmark June ended up four yen at 1,635 yen. The market retains a firm tone against the backdrop of stalled talks between Russia and Japan over 1998 platinum supply contracts, but it lacked the energy to test the topside after NYMEX's sharp losses on Friday, traders said. There has been little progress in Japan-Russia PGM contract talks since Japanese traders last month rejected an offer by Russia's PGM export agent, Almazjuveli report, to sell platinum at a premium of $4 per ounce over the London fix, they said. Palladium futures ranged from steady to eight yen per gram down. Benchmark June ended flat at 1,135 yen.

China to cut copper output

China's six major copper producers have agreed to cut 1998 production by 90,000 tonnes from their original target of750,000 tonnes, an industry association said on Monday.

Hong Kong gold shades up

Hong Kong spot gold at midday ended quoted at $288.70/289.20 per ounce, a shade up from its opening price of $288.60/289.10, dealers said on Monday. Spot silver ended at midday quoted at $5.25/30 an ounce,up from the opening price of $5.24/29 an ounce. Tael gold at midday was HK$2,665 per tael, up HK$3 from the opening price of HK$2,662 per tael.

Malaysia tin up

Malaysia's spot tin price closed up 15 cents at 23.15 ringgit ($5.43) a kg on Monday, helped by a higher London market on Friday, traders said. A smaller premium held by the local price over the London market attracted continued buying from European interests, they said. The premium narrowed to $85 a tonne against $110 on Friday. "The smaller premium is helping sentiment," said a local trader. "Prices should hold at above 23 ringgit as the market remains fundamentally strong." Local buyers absorbed part of the day's volume of 83tonnes, down from 99tonnes on Friday, traders said. A weak ringgit against the US dollar also supported the local tin price, they said.

Opec crude output rises

Opec crude output edged up 37,000 barrels per day in June to 28.257 million bpd, Middle East Economic Survey (MEES) estimates showed on Monday.The newsletter reported that the relatively stable figure hid a substantial increase in Iranian output to 3.832 million bpd and a fall in Iraqi output to 2.08 million bpd in June. It estimated that production by other Opec members was more or less stable in the month. A Reuters survey of officials and industry monitors found that Opec's oil output fell 410,000 bpd in June to 27.96 million bpd. "Iranian production is estimated to have risen to 3.832million bpd in June -- up 230,000 bpd from May and almost at par with the April figure of 3.833 million bpd," MEES reported. It estimated that Iraqi production in June was 160,000 bpdless than its May figure of 2.24 million bpd. The Iraqi output comprised exports of 1.45million bpd and630,000 bpd for domestic consumption and deliveries to Jordan. The newsletter reported that Iranian crude exports rose 238,000 bpd in June to an average 2.482 million bpd. Deliveries to domestic refineries were estimated at 1.35 million bpd. MEES put average liftings by the National Iranian Oil Co at 794,000 bpd versus 744,000 bpd in May. Japanese companies lifted an average of 482,000 bpd in June compared with 518,000 bpd in May. Korean liftings were 218,000 bpd versus 115,000 bpd, it reported.

Taiwan naphtha plant to resume work

Taiwan's state-owned Chinese Petroleum Corp (CPC) will re-start a 400,000 tonnes per year capacity naphtha cracker at its Kaohsiung refinery by July 17, following a power outage late last Friday, a company spokesman said on Monday. The whole refinery was shut for 15 minutes at around midnight (1600 GMT) of July 10 after Typhoon Nichole struck South Taiwan and disrupted power supplies from Taipower stations, the spokesman said. "We have re-started the unitsone by one and believe we can recover the whole refinery by Friday," he said. The spokesman said that all of the refinery's crude distillation units (cdu) and secondary units were already operating back at capacity on Monday. "Only several petrochemical units still remain shut, that takes time," the spokesman said. This includes the 400,000 tonnes per year capacity naphthacracker no 5, he said. The refinery with 570,000 barrels-per-day (bpd) cducapacity is the third largest refinery in the region.