More locally-produced oil was also expected to be available in major Indonesian cities this week, traders said. Indonesian palm olein prices finished last week at 4,500 rupiah/kg in Jakarta, off 400-450 rupiah on the week.

"Demand is lacking right now. The Indians have bought sufficient amount of olein for their consumption during the mid-October Hindu festival," said a trader in Malaysia.

"I think they (the Indians) have covered their buying programmes and are quite contented with amounts they had bought."

Last week, the Indian government said the country had adequate supplies after the arrival of 56,000 tonnes of palm olein. Another 24,000 tonnes are expected soon.

The Indiangovernment had earlier asked the State Trading Corporation (STC) to import 150,000 tonnes of edible oils until October.

Traders said uncertainty over Malaysia's currency controls was also dampening interest from potential importers and cutting trading volumes on the Kuala Lumpur crude palm oil futures market.

"We feel that liquidity would continue thin," the trader in Kuala Lumpur said. "Prices are likely to be rangebound despite supportive exports data."

Cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd (SGS) estimated Malaysia's palm oil exports for the period from September 1 to September 25 at 685,586 tonnes against 745,613 tonnes over the period August 1 to August 25.

The palm oil market is also tracking soy oil's movements.

Malaysia's benchmark third month December futures contract ended down 23 ringgit at 2,272 ringgit a tonne on Friday, off 31 ringgit on the week.

The Malaysian palm oil markets are closed on Monday, for a holiday to celebrate the success of therecently-concluded 16th Commonwealth Games.