KUALA LUMPUR, Aug 11: Malaysian crude palm oil futures closed higher on Friday, helped by fresh buying on the back of strong exports, traders said.

Malaysian palm oil demand is growing with heavy buying by traditional customers such as China and Europe and companies setting up bio diesel plants covering positions before starting production.

Hedge funds are also trading heavily, adding to the volatility.

The open interest was high at 64,589 lots, compared with the usual 35,000 to 40,000 lots, which traders said indicated a large number of players.

Exports of Malaysian oil palm products for August 1-10 stood at 469,977 tons, up 32 per cent from 356,093 tons shipped between July 1 and 10, said cargo surveyor Societe Generale de Surveillance, whose data is closely watched by the market.

Another cargo surveyor, Intertek Testing Services, said exports during the first 10 days of this month rose 17.7 per cent to 458,949 tons from the 389,861 tons shipped in July 1-10.

For shipment in July and August, palm oil imports should be close to, if not more than, a million tons, said a trader at an international house based in Singapore.

In the physical market, crude palm oil for August shipmentsaw sellers at 1,640 ringgit a ton and bids at 1,630. Trades were done between 1,630 and 1,640 ringgit a ton.—Reuters