KUALA LUMPUR, Aug 19: Malaysian palm oil extended gains on Friday on fears haze from Indonesian forest fires, which disrupted production last week, could return soon.

But volumes remained light as some players turned cautious about going long.

Te benchmark third-month crude palm oil contract on Bursa Malaysia Derivatives, November, closed up 4 ringgit at 1,391 ringgit ($369.95) a ton, despite losses in rival Chicago soyaoil.

The contract hit an intraday high of 1,396 ringgit, closer to the key 1,400 barrier, which traders had initially thought would take longer to reach.

Other traded contracts were up 5-6 ringgit. Volume was 4,636 lots of 25 tons each, below the 6,000 lots or more typically seen on a busy day.

Production of palm oil itself rose 7 per cent in July due to higher yields, but dealers expect it to drop 3 to 5 per cent in August.

In physical dealings of crude palm oil, August contract was offered at 1,385 ringgit a ton and bid at 1,380 in the southern and central regions of Malaysia.

Trades were reported at 1,375-1,380 ringgit. —Reuters