Supportive crop data, foreign demand as well as firmer Chicago soyoil futures had boosted Malaysian palm oil prices over the past week.

"Prices should remain firm as crop projections and export figures have been quite friendly," said a trader in Kuala Lumpur.

Malaysia's benchmark, third month, January crude palm oil futures contract closed on Friday at 2,298 ringgit ($604.82) a tonne, up from 2,246 a week earlier. Traders pegged immediate resistance for the contract at 2,325 ringgit and the next at 2,350.

Cargo surveyor Societe Generale de Surveillance (SGS) is due to release its estimate of Malaysian palm oil exports for October 1-25 on Monday. It estimated exports at 546,171 tonnes for October 1-20 against 540,913 tonnes in September 1-20.

A windfall profit tax on crude palm oil and palm kernel oil announced by the Malaysian government onFriday would have little impact on the market, traders said.

The levy, effective January 1, 1999, will be imposed when the prices of crude palm oil and palm kernel oil exceed 2,000 ringgit a tonne.

Traders said the market would be watching for further tenders from India this week.

India's State Trading Corporation on Friday tendered for up to 24,000 tonnes of RBD palm olein for November/December shipment.

Indian trade officials said last week that heavy unseasonal rains in western India had partially damaged the cotton and groundnut crop, which could cut the country's winter oilseeds output.

A stronger dollar against the rupiah was expected to lift Indonesian olein prices this week, traders said.

"Prices will likely rise due to the weakening of the rupiah. But, on the other hand, the opposite may happen if the rupiah gains momentum again," said one trader.

The rupiah slid to 7,800 to the dollar on Friday from around 7,000 earlier in the week.

Traders also expected demand to rise thisweek.

They said they were still awaiting a government decision on whether to scrap or lower export taxes on crude palm oil and its by-products.

Some traders have called on the government to reduce the export taxes because of oversupply.

Indonesia imposes export taxes of 60 per cent for crude palm oil, 55 per cent for RBD palm oil and palm olein and 50 per cent for crude palm kernel oil.