KUALA LUMPUR, April 5: Malaysian palm oil futures ended higher on Friday after Chinese traders said Beijing had released import licences for palm oil.

China is due to buy 2.4 million tons of palm oil this year under World Trade Organization obligations, and Malaysia and Indonesia are eyeing a major slice of that demand from the world’s second largest edible oils importer.

Traders in China said Beijing has issued the bulk of private firms’ low-duty farm import quotas, including those for corn, wheat and edible oils.

We heard that the bulk of import quotas going to private firms has been issued yesterday for edible oils, including palm oil, said a trader with a state-owned firm in Beijing.

But dealers in Kuala Lumpur viewed the reports with scepticism.

This is a trader talking. We have heard many Chinese traders talking before and nothing materialised, said a palm oil dealer in the Malaysian capital.

At the close, the market’s benchmark third-month June contract was six ringgit up at 1,161 ringgit ($) a ton after hovering between a low of 1,151 and high of 1,167.

Overall market volume was substantial at 1,898 lots.

An overnight rebound in Chicago soyoil futures and a stronger rupiah, which boosted palm oil prices in Indonesia, helped the market in its early session.

Private crop forecaster Ivan Wong made the market a little bearish by saying in his latest estimates for March that stocks for last month were at 1.16 million tons against market expectations of 1.1 million.

In physical trading, the April contract for the southern and central regions was offered at 1,155 ringgit a ton, up five ringgit from Thursday’s close, against bids at 1,150. Deals were reported at 1,155-1,150 ringgit.

The May contract for south and central was asked/bid at 1,165/1,155 ringgit. Business was reported at 1,160.—Reuters