KL palm oil ends up on pre-holiday covering

KL palm oil ends up on pre-holiday covering

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed higher on Friday, the last trading session of 2000, due to short covering ahead of the long holiday, traders said.

The benchmark third-month March futures contract ended up 20 ringgit at 805 ringgit ($211.84) a ton, the day's high. That compared with 1,176 ringgit at the end of last year.

Overnight gains by Chicago soyoil futures also supported prices, traders said, adding that volume was dominated by switching activities.

"Shorts are covering their positions ahead of the long holidays. There's also a lot of switching activity, so the gains today do not reflect the actual market trend," said one trader in Kuala Lumpur.

The physical sector barely traded with players largely sidelined ahead of the holidays.

The Commodity and Monetary Exchange of Malaysia (Commex) will be closed from December 25 to January 1, for Christmas, the Muslim Eid al-Fitr and New Year holidays.

Physical January (south) crude palm oil was offered at 730 ringgit a ton against bids of 725 and trade at 725 and 727.50. Among refined products, January RBD palm oil was offered at $215 a ton FOB and February at $225.

There were offers for January RBD olein at $225 and February at $235.

January RBD palm stearin was offered at $195 and January palm fatty acid distillate at $167.50.