KUALA LUMPUR, Jan 2: Malaysian palm oil futures closed off their lows on Thursday on short covering after technical selling had pushed the market to its lowest level in three weeks.

The benchmark third-month March futures contract ended down 13 ringgit at 1,631 ringgit ($429.21) a ton after touching 1,609, the lowest since December 11. The contract hit an early high of 1,655.

Overall volume was a heavy 7,527 lots.

Technical selling was triggered after the 1,630 and 1,622 support levels were broken. The market is also due for some correction after the recent gains, said one trader.

The third-month contract had risen five per cent in the last two weeks. Prices of physical crude palm oil were quoted down, with little trading seen.

CPO for January was offered by sellers at 1,650 ringgit a ton — down 30 ringgit from Tuesday — against bids at 1640.

Trades were reported at 1,650 ringgit.—Reuters