Malaysian palm oil futures closed slightly higher on Tuesday, continuing Monday's rebound on short-covering in light trade ahead of a long market break. The market will be closed from Wednesday for the Chinese and Muslim new year holidays, reopening on Monday. The benchmark third-month contract on Bursa Malaysia Derivatives, April, ended up five ringgit at 1,285 ringgit ($338.16) a tonne, after trading within a 10-ringgit range. Other traded contracts were up 1 to 6 ringgit.
Overall volume stood at just 987 lots of 25 tonnes each, compared with the 6,000 lots or more usually seen on a busy day.
Looking ahead, dealers in Kuala Lumpur said they were awaiting February 1-10 estimates on Malaysian palm oil exports to lead the market when trade resumes after the holidays.
Societe Generale de Surveillance, a prominent surveyor of Malaysian oil palm cargoes, said in its last report that exports fell 5.8 percent in January from December.
Its next report, for the period from February 1 to 10, is due on February 14.
The cargo surveyor's numbers are a key indicator for demand.
State-run Malaysian Palm Oil Board is scheduled to release on February 15 official crop and trade data for January, shedding more light on supply and demand.
In physical dealing of crude palm oil, February contract saw bids at 1,290 ringgit a tonne and offers at 1,300 ringgit in Malaysia's southern and central regions.
Bids/offers closed at 1,287.50/1,290 on Monday.
Trades were reported at 1,290 ringgit in both regions on Tuesday.
PALM OIL FUTURES:
February (south): 1300.
Open/High/Low: 1282/1285/1275.
Previous close: 1290.
PALM OIL PHYSICALS:
April (3rd month): 1285.
Previous settlement: 1280.
FUTURES:
Benchmark April up 5 ringgit at 1,285 ringgit ($338.16) a tonne.
PHYSICALS: February offers up 10 ringgit a tonne.
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