KUALA LUMPUR, Feb 11: Malaysian crude palm oil futures edged up 0.8 per cent on Monday, recovering from sharp declines earlier as investors covered shorts after rival soyaoil markets swung into positive territory in Asian trade.

Trading was light after the long weekend holiday but caution was giving way to speculative buys with traders saying demand looked resilient despite the steep prices and US soyaoil prices were set to jump on red-hot wheat markets.

Palm oil is just 1.3 per cent off an historic high of 3,458 ringgit hit last week and has gained almost 12 per cent this year on Indonesian plans to hike export taxes and on bullish crude and vegetable oil prices.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled up 27 ringgit at 3,412 ringgit ($1,052) a ton, after going as low as 3,323 ringgit in morning trade.

Exports are looking a little positive because at these high prices, countries still need to buy. So exports could get better, he added.

But other traders were more wary, saying export data might turn negative as the month progressed because speculative funds would push the market to record highs and crimp demand.

A record high tomorrow is highly possible since soyaoil is already in positive territory and funds are going to pour back into palm oil on that account, said an analyst.

Other traded months rose 19-34 ringgit, except for the June contract which fell 56 ringgit. Overall, trade fell to 7,322 lots of 25 tons each from the usual 10,000 lots.

Exports of Malaysian palm oil products for Feb. 1-10 rose 8.1 per cent to 335,764 tons from the 310,737 tons shipped Jan. 1-10, cargo surveyor Intertek Testing Services said.

In the physical market, crude palm oil for February shipment in the southern region was quoted at 3,390/3,410 ringgit a ton. Trades were done between 3,370 and 3,400 ringgit.—Reuters