KUALA LUMPUR, March 7: Malaysian crude palm oil futures rebounded from early losses to close higher on Thursday, helped by bullish outlook forecast at an industry conference in Kuala Lumpur.

There were some bullish predictions coming out of the conference, giving the market a boost, said one trader.

James Fry, managing director of British-based consultancy group LMC International Ltd, told the conference that Malaysian crude palm oil futures may reach 1,500 ringgit ($395) a ton in the third quarter of 2002 due to an expectated decline in global edible oil stocks.

The benchmark third-month May futures closed up four ringgit at 1,170 ringgit ($307.89) a ton after trading as low as 1,160.

Volume stood at 1,163 lots, down from Wednesday’s 2,098 lots.

Traders said lower Chicago soyaoil futures overnight and worries over rising domestic palm oil stocks had weighed on prices earlier.

Private crop forecaster Ivan Wong estimated Malaysia’s palm oil output in February at 775,000 tons, down 17 per cent from January.

In physical palm oil, the March contract for the southern and central regions saw bids at 1,160 ringgit a ton versus offers at 1,165. Trades were reported at 1,155 to 1,160.

The April contract for south and central saw bids at 1,165 ringgit against offers at 1,170. Deals were done at 1,165 and 1,167.50 for south.—Reuters