The benchmark third position October futures contract ended down six ringgit at 1,037 ringgit ($272.89) a tonne after trading as high as 1,045 ringgit. Volume was 462 lots compared with 772 lots at the close on Monday."Once again we saw some deliberate buying," said one trader in Kuala Lumpur."Players who spent so much money to support the market on Monday did not want to lose their efforts just like that. That's why prices went up when the market was about to close," he added.

Traders said they did not see any fresh demand from China or India, which was the reason why the market stayed depressed. Primary industries minister Lim Keng Yaik said on Monday Malaysia, the world's largest producer and exporter of palm oil, was considering the removal of duties on CPO exports this year.

He also said Malaysia may allow more than four exporters this year to export CPO without duty. The concession was given to four companies last year.Malaysia's export tax is currently based on a graduated scale starting with 10 percent on prices above 600 ringgit a tonne. Some trades were reported on the physical side, but slow demand for products was expected to cap gains.Aug (South) crude palm oil was offered at 1,020 ringgit a tonne against bids of 1,015. It traded from 1,010 to 1,015.

Aug (central) crude palm oil was offered at 1,015 ringgit a tonne against bids of 1,010. It traded from 1,005 to 1,010. Among refined products, Aug RBD palm oil was offered at $282.50 a tonne FOB, Sep at $287.50 and Oct/Nov/Dec at $297.50. There were offers for Aug RBD palmolein at $302.50, with Sep at $307.50 and Oct/Nov/Dec at $317.50.Aug/Sep RBD palm stearin was offered at $232.50 and Aug/Seppalm fatty acid distillate at $190.