KUALA LUMPUR, Nov 12: Malaysian crude palm oil futures were firmer on Tuesday but off the highs after players liquidated positions ahead of the USDA’s November supply/ demand report, traders said.

By the close, the benchmark third-month January futures contract was up 25 ringgit at 1,590 ringgit ($418.42) a tonne. January had touched a high of 1,607 ringgit after breaking key resistance at 1,600. Overall volume was heavy at 5,735 lots.

The USDA report is due later today and people are not willing to take fresh positions, said one dealer.

The US Department of Agriculture is scheduled to release its November crop production reports at 1330 GMT.

The average of analysts’ estimates for 2002 U.S. soybean production was 2.690 billion bushels, above the USDA forecast in October for 2.654 billion but below last year’s record high crop of 2.891bn bushels.

Freight brokers said bookings to India had reached 280,000-300,000 tons so far this month, which indicated the country’s healthy appetite for palm oil.

India, the world’s largest edible oil consumer, normally buys up to 400,000 tons of palm oil a month from Malaysia and Indonesia.

India needs to buy oil because its winter output is not good. India has been reluctant to buy because prices are a bit expensive for them, but I feel the market will move up further, said one broker.

On the physical market, crude palm oil for November saw bids at 1,595 ringgit a tonne against sellers’ offers of 1,600 ringgit for the southern region.

Deals were reported at 1,595 to 1,600 ringgit.

November (central) was offered at 1,600 against bids of 1,590. Deals were done at 1,595.

December crude palm oil was offered at 1,610 ringgit against bids of 1,600 for south. Deals were reported at 1,600 to 1,610.

December CPO for central saw bids at 1,595 ringgit against offers at 1,600. There were deals at 1,600.—Reuters