KUALA LUMPUR, Jan 10: Malaysia’s crude palm oil futures gave up earlier gains and ended lower on Thurday due to profit taking, but steady overseas demand and tight supply in Indonesia were seen as supportive, traders said.

At the close, the benchmark third-month March futures was down 13 ringgit at 1,218 ringgit ($320.53) a tonne after trading as high as 1,247 ringgit.

Volume was heavy at 3,201 lots.

I guess it’s a healthy correction. The uptrend is there, especially because we are entering a period in which output will be slow, one trader said.

Exports may not be good for January 1-10, but some vessels have shifted to Pasir Gudang port (in Malaysia) because of problems in Belawan. I believe exports will pick up for the rest of this month, he added.

China said overseas firms exporting GMO products to China must apply for certificates from the ministry stating that the goods are harmless to humans, animals or the environment.

Beijing initially required government approval for all production, sale and imports of GMO foods, but it failed to issue clear details on implementation.

Traders in Malaysia said India’s palm oil imports from Malaysia and Indonesia were expected to be steady at around 300,000 tonnes in January.

Pakistan, another main buyer, had already booked 120,000 tons of palm oil from Malaysia so far this month, they said.

In the physical palm oil market, crude palm oil for January in the southern and central regions was offered at 1,210 ringgit a ton against bids of 1,205.

Trade was reported at 1,210 to 1,220 for south and central.

The February contract for south and central was offered at 1,225 ringgit and bid at 1,215. There were deals at 1,220 ringgit for central.—Reuters