KUALA LUMPUR, Feb 26: Malaysian palm oil futures drifted on Wednesday, with players showing little interest in trade ahead of India’s budget presentation later this week.

India, the world’s largest edible oil consumer, is expected to cut customs duty on crude palm oil (CPO) to 55 per cent from 65 per cent in its budget on Friday — a move likely to boost palm oil imports at the expense of rival soyaoil.

There was some last minute covering, but I think trading will be slow like this ahead of the budget, said one trader.

At the close, benchmark third-month May was five ringgit higher at 1,608 ringgit ($423.16) a ton. The contract had touched a low of 1,603.

Overall volume was low at 1,996 lots, compared with a moderate 3,100 lots at the close on Tuesday.

In the physical market, the February and March contracts in both the southern and central regions saw sale offers at 1,630 ringgit a ton against bids of 1,620 ringgit.

Deals were reported at 1,620 to 1,630 for south and at 1,620 for central.—Reuters