KUALA LUMPUR, Jan 9: Trading in Malaysian palm oil shuffled back and forth on Wednesday with players first selling, then buying on fresh speculation about Indonesia’s Belawan port, before the market ended down on profit-taking.

The benchmark third-month March futures lost 16 ringgit on the day to close at 1,231 ringgit a ton. Volume was substantial at 2,377 lots.

Traders said talk that some vessels had been allowed to enter or leave Indonesia’s Belawan port prompted a sell-off shortly after the market opened.

The Belawan port in North Sumatra, Indonesia’s main producing area for palm oil, has been blocked for more than a week by a sunken dredger. This had boosted export potential for Malaysian palm oil and the local market has rallied since Friday.

The market has forecast around 250,000 to 300,000 tons for January 1-10 exports, against 343,873 tons in December 1-10.

China, the second biggest palm oil buyer, is set to import 2.4 million tons this year, up sharply from the 1.4 million in 2001, following its entry into the World Trade Organization.

Traders said Beijing could release the first batch of its import quota for 2002 in the first week of February.

In the physical palm oil market, crude palm oil for January in the southern and central regions was offered at 1,225 ringgit a ton against bids of 1,220. Trade was reported at 1,230-1220.

The February contract for south and central was offered at 1,240 ringgit and bid at 1,230. Deals were done at 1,240 ringgit.

Among refined palm oil products, RBD palm oil for January was offered at $335 a ton, February at $340, March at $342.50 and April/May/June at $345.—Reuters