KUALA LUMPUR, Feb 17: Malaysian palm oil futures ended firm on Monday as players felt less fearful of a possible war in Iraq and more confident that exports in second half of February would accelerate.

Such factors aside, the new benchmark third-month futures contract, May, saw thin gains, closing five ringgit up at 1,597 ringgit ($420.26) a ton. It hit an intraday high of 1,600.

But traders said China returned actively to the market at the end of last week, buying up to 100,000 tons of palm oil for shipment after February 15.

Volume in Monday’s futures market was heavy at more than 10,000 lots, due to switching of contracts to the new third-month.

In physical trading of crude palm oil, the February and March contracts saw sale offers closing at 1,615 ringgit a ton up 10 ringgit from Friday against bids peaking at 1,610.

Trades were reported at 1,605-1,610 ringgit.—Reuters