KUALA LUMPUR, March 15: Malaysia palm oil futures closed higher on Thursday on buying activity after bullish comments from industry analysts at a price outlook conference.

Weak export numbers announced by cargo surveyors failed to drag down the market as traders felt it was the trend was temporary.

The benchmark third-month May contract on the Bursa Malaysia Derivatives Exchange ended up 15 ringgit at 1,960 ringgit ($558) per ton.

The benchmark contract recovered in the afternoon session because people are optimistic that it will cross 2,000 ringgit, one dealer said.

The price outlook given at the meeting was for a very firm market this year. But trading was dull with many contracts untraded although most traded contracts ended higher. Overall volume was 5,093 lots of 25 tons each, down from around 12,000 lots on a routine day.

A lot of people are still travelling back from the conference. So proper trading won't start until Monday, another trader said.

Palm oil prices are set to jump more than 20 per cent by year-end as global oilseed stocks get depleted and demand from the food and fuel sectors surges, industry officials said at the conference in Kuala Lumpur which ended on Wednesday.

Malaysian palm oil, which gained almost 40 per cent last year, could move slightly lower in the near term, but surging Indian food demand and Europe's insatiable appetite for biofuels will ensure the commodity holds onto the gains this year. — Reuters