KUALA LUMPUR, April 1: Malaysia’s palm oil futures were steady on Monday with players waiting for more clues from China over its import quotas and due to anticipation of fresh purchases by India, traders said.

The benchmark third-month June contract was two ringgit higher at 1,154 ringgit ($303.68) a ton after trading as high as 1,160 ringgit. Volume was moderate at 1,502 lots.

India and China will step up their buying. It’s a matter of time, said one trader. But the market is very boring. How long can you keep gossiping about China, the quotas and so on? he said.

Traders said India may buy up to 300,000 tons of palm oil from Malaysia and Indonesia in April to replenish its dwindling stocks, while China is keeping the market in suspense over its import quotas.

Speculation was rife in the Malaysian market that India, the world’s largest edible oil importer, was waiting for signs China would hold back new import licences which would depress prices.

Dealers trading with China said Beijing had so far allowed local importers to purchase up to 300,000 tons of palm oil.

Traders said around 150,000-200,000 tons of palm oil are sitting in bonded tanks in China, waiting for words from Beijing. Exporters had sent palm oil to Hong Kong as early as January ahead of the release of the first quotas in late March.

In physical trading, the April contract for the southern and central regions was bid/asked at 1,140/1,145 a ton. Trade was reported at 1,140 to 1,145 for south and central.

The May contract for south and central was talked 1,150/1,155. No deals were reported.—Reuters