KUALA LUMPUR, Dec 10: Malaysian crude palm oil futures defied lower export data for December 1-10 and firmed across the board on Monday due to prospects of fresh purchases by China, traders said.

China, which formally enters the World Trade Organization (WTO) on Tuesday, is expected to raise its palm oil import quota to 2.4 million tonnes next year from 1.4 million in 2001.

China is the main reason why the market moved up, said one trader in Kuala Lumpur.

Cargo surveyor Societe Generale de Surveillance (SGS) said on Monday Malaysian palm oil exports for December 1-10 stood at 343,873 tons, down from 383,871 in November 1-10.

At the close, the benchmark third-month February was up 12 ringgit at 1,181 ringgit ($310.79) a ton after trading as high as 1,198 ringgit.

Volume was moderate at 1,501 lots.

I think the quota is almost used up. But I don’t think China will give us any details this month.

We can expect to hear something in early January, said one Kuala Lumpur trader who deals with Chinese buyers.

China did a lot of covering last week, he said.

SGS said China was the biggest buyer of Malaysian palm oil for December 1-10, taking 63,364 tons, followed by India with 61,055 and Pakistan with 47,500.

European Union countries bought 40,188 tons, it added.

One trader in Jakarta said China had intensified its purchases since November.

We no longer sell palm oil at a discount to Malaysian prices because of the strong demand from Europe, China and India ahead of the new year, said the trader.—Reuters