KL palm oil higher on short covering

KL palm oil higher on short covering

KUALA LUMPUR (Reuters): Short covering and overnight gains BY Chicago soyoil futures overnight supported Malaysian palm oil futures on Thursday.

The benchmark third-month February contract closed up 15 ringgit at 860 ringgit (US$226.32) a tonne.

"There was quite a bit of short covering going on as people feel that the downside is limited at the moment. There are not many sellers in the market," said one trader.

Traders said market sentiment was helped by talk that Malaysia might allow one million tons of crude palm oil to be exported duty-free next year.

The government earlier this year selected seven firms to export 500,000 tons of crude palm oil without duty to India and Europe to help reduce stocks.

Physical November (south) crude palm oil was offered at 815 ringgit a ton against bids of 810 and trade at 800 to 810.

December (South) saw offers at 840 ringgit and bids at 835. It traded at 825 to 835 ringgit.

Among refined products, November RBD palm oil was offered at $232.50 a ton FOB and December at $235.

There were offers for November RBD palm olein at $252.50 and December at $255.

November RBD palm stearin was offered at $190 and December at $195. November palm fatty acid distillate was offered at $135.