KUALA LUMPUR, Jan 22: Speculation of strong exports for January spiked Malaysian palm oil futures on Tuesday in a classic rally driven by heavy punting and little fact, dealers said.

The benchmark third-month April futures appeared poised to test the 1,250 ringgit-a-tonne mark as it ended 29 ringgit up at 1,237 a ton after a wobbly start. Final volume was a hefty 3,847 lots, more than thrice the morning trade.

Monday’s closure of the Chicago commodities markets for a public holiday had initially left local palm oil players without news on soyoil prices for Tuesday’s opening.

With revised January crop estimates released on Monday by private forecaster Ivan Wong being the only thing to lean on, many stayed on the sidelines. They shrugged off their caution as speculation grew that palm oil exports in January may reach close to a million tons despite disappointing shipment data for the first 20 days.

Societe Generale de Surveillance (SGS), the market’s main exports tracker, said on Monday January 1-20 exports were down fractionally to 575,746 tonnes from 578,143 in December 1-20.

SGS’ next estimates are for January 1-25, due on Friday.

On the physical crude oil market, January crude palm oil (CPO) for the southern region was offered at 1,190 ringgit a ton at the close, up 15 ringgit from Monday, against bids at 1,180.

Trade was reported at 1,175 to 1,180.

January CPO for central saw offers for 1,195 against bids at 1,185. Deals were heard at 1,175 to 1,185.

February CPO for south and central was offered at 1,210 ringgit against bids at 1,205. Business was reported at 1,200 to 1,205.

Among refined palm oil products, RBD palm oil for January was offered at $332.50 a ton, February at $335, March at $340 and April/May/June at $342.50.—Reuters