KUALA LUMPUR, Jan 2: Malaysian crude palm oil futures ended higher on Wednesday on talks China was expected to release the first batch of palm oil import quota for 2002 in January, which may reach up to one million tons.

Traders also said tension between Pakistan and India, both major edible oil buyers, may boost Asia’s palm oil market.

“China has approved the quota. I believe the first batch of the quota will be released before January 10. It will reach between 800,000 tons to one million tons,” said one trader in Malaysia who deals with Chinese buyers.

“An additional quota will be released before the Chinese New Year in February. The amount may reach between 500,000 tons and 600,000 tons,” he added.

China is set to import 2.4 million tons of palm oil in 2002, up sharply from last year’s 1.4 million tons following its entry to the World Trade Organisation (WTO).

The trader said many cargo ships were now sailing to Hong Kong ahead of the imminent release of the quota.

At the close, the benchmark third-month March futures was quoted at 1,160 ringgit ($305.26) a ton, up 14 ringgit, after trading as high as 1,167 ringgit.

Volume was moderate at 1,378 lots.

At the physical market, January crude palm oil (CPO) for southern region was bid at 1,137.50 ringgit a ton and offered at 1,140 ringgit.

Deals were reported at 1,140 ringgit.

January for central region was offered at 1,142.50 against bids of 1,140 ringgit. Deals were done at 1,140 ringgit to 1,142.50.

February crude palm oil for the southern and central regions saw offers at 1,155 ringgit a ton against bids of 1,150. Deals were reported at 1,150 ringgit.—Reuters