KL palm oil higher, covering persists

KL palm oil higher, covering persists

KUALA LUMPUR (Reuters): Malaysian palm oil futures ended mostly higher on Thursday in anticipation of further rises in Chicago and positive news from this month's visit by Indian Prime Minister Atal Behari Vajpayee, traders said.

"A lot of people are not comfortable to sell at this level because the market is trading at near the resistance level of 820 ringgit," said one trader in Kuala Lumpur.

"I think tomorrow the market will break 800 ringgit and try to test the 820 ringgit resistance level because all the bearish news has been factored in," he added.

Vajpayee is scheduled to visit Malaysia on May 14-16, when he is expected to sign an agreement involving a $1.8 billion railway project.

India was Malaysia's main palm oil buyer in 2000, taking 2.03 million tonnes.

At the close, benchmark third-month July futures were up three ringgit at 797 ringgit ($209.74) a ton. Volume was 1,490 lots.

In the physical market, May crude palm oil (CPO) for the southern region was offered at 775 ringgit a ton against bids at 770. Trades were done at 765 and 767.50.

May CPO (central) was offered at 770 ringgit a ton against bids at 765 and trades reported at 760 to 765.

June CPO for the southern and central regions was offered at 795 ringgit a ton against bids of 785 and trade was reported at 780 to 790 for both regions.