KUALA LUMPUR, Nov 27: Malaysian crude palm oil futures ended mostly lower on Tuesday, but with benchmark February rebounding on technicals and talk the government has selected firms to be allowed to export CPO without duty.

“The market has been down for a while, so I think it’s natural for it to rebound,” said one trader.

The market’s support levels were seen at 1,100 ringgit and 1,120 ringgit. Short term resistance was pegged at 1,170 ringgit, said the trader.

“The first batch will be 650,000 tons and those firms can start exporting CPO in December,” he added.

A spokesman from the Primary Industries Ministry said he could not confirm the talk. “I can’t confirm anything right now and the minister is away,” he told Reuters.

At the close, the benchmark third-month February futures was down one ringgit at 1,142 ringgit ($300.53) a ton. Volume was heavy at 2,318 lots.

In the physical sector, the December contract for the southern and central regions were offered at 1,100 ringgit a ton against bids at 1,090. Trade was reported at 1,090 to 1,095 for both sides.

The January contract for the southern and central regions saw bid at 1,120 ringgit against offer at 1,130. Deals were reported at 1,125 to 1,132.50 for south.—Reuters