Palm oil ends higher on export data in KL

Palm oil ends higher on export data in KL

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed higher on Monday, helped by higher exports in the first 10 days of March.

Cargo surveyor Societe Generale de Surveillance Malaysia Sdn. Bhd. (SGS) said Malaysian palm oil exports for March 1-10 were at 299,565 metric tons against 283,135 tons in the first 10 days of February.

Traders said players were also encouraged by India, Malaysia's biggest palm oil market, taking more than one third of the total exports.

India took 111,890 tons, SGS said.

"The export figures were quite good, and this prompted short covering interest. But fundamentals have not changed much, so the market should not be so bullish," said a trader in Kuala Lumpur.

The benchmark third-month May futures contract ended up 17 ringgit at 830 ringgit ($218.42) a ton after trading as low as 808.

A plunging rupiah, which could lead to more competition from Indonesia's palm oil trade, had earlier unnerved the market.

The rupiah fell past 11,200 against the dollar earlier in the day before bouncing to around 10,500 in the afternoon after Bank Indonesia intervened.

Traders pegged immediate resistance for May futures at 836 ringgit, a recent high, and support at 800 ringgit.

Physical March (south and central) crude palm oil was offered at 790 ringgit against bids at 785. It traded at 785 to 790 ringgit.

April (south and central) was offered at 820 ringgit against bids at 810, and trade at 800 to 810.