KUALA LUMPUR, Aug 1: Malaysia’s crude palm oil futures ended steady after a choppy session on Thursday, where last-minute short covering plucked prices from negative territory, traders said.

At the close, the benchmark third-month October contract was three ringgit higher at 1,505 ringgit ($396.05) a ton. The contract, which opened at 1,525 ringgit, had touched a low of 1,487 ringgit because of profit-taking.

Volume was heavy at 4,711 lots.

Another dealer said China bought some 10,000 tons of RBD palm olein on Thursday. They bought olein at $438 a ton C&F. Initially, the Chinese placed their bids at $430, but later on they were willing to pay up, said the dealer.

Earlier, one dealer said that India purchased around 80,000 tons of palm oil on Monday through Wednesday. Traders said India would step up purchases because of the country’s worst drought in more than a decade.

China bought close to 60,000 tons of RBD olein for September/ October at $417.50 FOB equivalent on Wednesday, said the dealer, adding August freight bookings to Pakistan, another main buyer, had reached around 70,000 tons so far this week.

At the physical market, August CPO contracts saw bids at 1,510 ringgit a ton against offers at 1,505 ringgit. Deals were done at 1,510 to 1,520 ringgit.

August (central) was offered at 1,510 ringgit against bids of 1,500 ringgit. Deals were reported at 1,510 to 1,520 ringgit.

September CPO was offered at 1,510 ringgit against bids of 1,505 ringgit (south and central). Business was reported at 1,510 ringgit for south.—Reuters