KUALA LUMPUR, April 8: Malaysian palm oil futures ended up after an active session on Monday but dealers said there were few clues to direction with China remaining silent on its WTO import obligations.

Speculation that Beijing might announce import licences for palm oil in 2002 has kept the market on tenterhooks, and dealers said they had no idea how long the world’s second largest edible oils buyer would keep them guessing.

Under its World Trade Organisation obligations, China is due to buy 2.4 million tons of palm oil this year. Malaysia thinks Beijing may issue licences to purchase 1.6 million tons first.

On Friday traders in China said the government there had issued the bulk of private firms’ low-duty farm import quotas, including those for corn, wheat and edible oils.

But the lack of official confirmation made dealers in Kuala Lumpur wary of the story.

Palm oil’s benchmark third-month June futures in Kuala Lumpur settled nine ringgit up at 1,170 ($308) a ton, after hovering between a high of 1,176 and low of 1,166.

Overall market volume was a hefty 2,374 lots. But traders said most of the action involved switching of positions, with little fresh buying.

Aside from the speculation over China, the market was buoyed by stronger US soyaoil futures and a rallying rupiah, which made competing palm oil products from Indonesia pricier.

We are quite directionless as of now. China is holding us by the guts, said a palm oil dealer in Kuala Lumpur.

There was also talk among some traders that India had bought 100,000-150,000 tons of crude palm oil and crude olein from Malaysia and Indonesia for prompt shipment after Beijing traders spoke on Friday about the import quotas China supposedly issued.

Most of the palm oil came from Malaysia, a trader said.

In physical trading of palm oil, the April contract for the southern and central regions was offered at 1,165 ringgit a ton, up 10 ringgit from Friday’s close, against bids at 1,162.50. Business was reported at 1,160-1,165 in both regions.

The May contract for south and central was asked/bid at 1,170/1,167.50 ringgit. Trade was reported at 1,165.—Reuters