KUALA LUMPUR, Sept 29: Malaysian palm oil futures hit four-month highs on Monday after China committed to buy 2.7 million tons of the commodity in 2004 when its quota for the current year runs out.

The benchmark third-month palm oil contract on the Malaysian Derivatives Exchange, December, settled at 1,469 ringgit ($386.58) a ton, up 51 ringgit from Friday.

The closing was one ringgit shy of the day’s high of 1,470.

The previous high for the third-month contract was 1,477 ringgit on May 16.

Dealers put the next psychological barrier at 1,500 ringgit.

In the physical crude palm oil (CPO) market on Monday, the October contract saw bidders/ sellers at 1,510/1,520 ringgit a ton in the southern region of Malaysia. In the central zone, bids came up to 1,515 against offers at 1,520.

On Friday, bids/offers for prompt delivery were at 1,480/ 1,485. Trades for Oct were reported on Monday at 1,510-1,520 ringgit in both the southern and central regions.—Reuters