Malaysian crude palm oil (CPO) futures extended their gains by the close on Tuesday, spurred by fresh 15-1/2 year highs overnight in rival Chicago soyoil.
But dealers warned of possible sales in coming sessions after data showed an estimated 29 percent drop in palm oil exports for the first 10 days of February versus January 1-10.
Societe Generale Surveillance Malaysia Sdn Bhd, the main cargo surveyor for Malaysian palm oil exports, said on Tuesday it estimated only 247,750 tonnes for the first 10 days of February, down from 347,410 tonnes for the same period in January.
CPO's benchmark third-month futures on the Malaysia Derivatives Exchange, April, closed 39 ringgit up at 1,883 ringgit ($495) a tonne, off a high of 1,890 ringgit.
The contract has jumped 93 ringgit since Friday's opening on the strength of soyoil - the main alternative to palm oil. Volume on the overall market was heavy at 8,473 lots. But open interest, which indicates liquidity, was down to 18,027 lots from 19,040 lots previously, signalling a drop in buyer interest.
"The question is whether we are going to work on our own fundamentals or borrowed fundamentals," said a trader, referring to the dull export performance locally as prices surged in Chicago.
Traders said a tonne of CPO from Malaysia was trading on Tuesday at a discount of around $120 to a tonne of crude soyoil, giving local prices potential to rise.
In physical or cash trading of CPO, the prompt February contract saw bids/offers at 1,897.50/1,900 ringgit a tonne in the southern and central regions, up from Monday's closing quotes of 1,865/1,870.
Trade was reported at 1,895-1,900 ringgit for both regions.
Cash CPO for March saw bids at 1,890 ringgit and offers at 1,900.
Deals were reported at 1,890 ringgit in both regions.
PALM OIL FUTURES:
February (south): 1900.
Open/High/Low: 1860/1890/1853.
Previous close: 1870.
PALM OIL PHYSICALS: April (3rd month): 1883.
Previous settlement: 1844.
FUTURES: Benchmark third-month April up 39 ringgit to 1,883 ringgit ($495) a tonne.
PHYSICALS: Also up, on the strength of futures.