KUALA LUMPUR, Jan 3: Malaysian crude palm oil futures ended steady in choppy trading on Thursday with dealers waiting for news of China’s import quota for 2002.

Some traders who deal with Chinese buyers said Beijing had approved the quotas and was expected to release the first batch, which could reach up to one million tons, before January 10.

It’s a normal trading day with people switching contracts from January to March and from February to March. The main story is still China, said one trader.

Soyaoil has been discounted. We stick to our own fundamentals, which are about declining production and China’s quota, 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 Organization (WTO).

The second batch of the quota was expected to be released after the Lunar New Year in February and traders 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 unchanged at 1,160 ringgit ($305.26) a ton after trading as high as 1,171 ringgit.

The contract had touched a low of 1,159 ringgit.

Volume was moderate at 1,405 lots.

January output may increase to 980,000-985,000 tons, but is expected to fall to 770,000-775,000 tons in February, he said.

Stocks could fall to 900,000 tons in January, less than 800,000 tons in February and between 650,000 and 700,000 tons in March, said traders.

At the physical market, January crude palm oil (CPO) for southern and central regions was bid at 1,140 ringgit a ton and offered at 1,145 ringgit. Deals were reported at 1,145 ringgit for south and at 1,140 to 1,145 for central.—Reuters