KUALA LUMPUR, March 14: Malaysian crude palm oil futures rallied at the close on Thursday, inspired by strong covering in the physical sector due to hopes of better exports in March, traders said.

I am sure the market will break the 1,200 ringgit resistance level soon, one trader said.

The benchmark third-month May futures ended 16 ringgit higher at 1,181 ringgit ($310.79) a tonne after trading as high as 1,185 ringgit. Total volume was heavy at 2,861 lots.

The market ignored news that edible oils imports by India fell 33 per cent in the first four months of the oil year starting November 2001, from the same period a year earlier, because of increased local supplies.

Brokers said freight rates from West Malaysia/Sumatra to the west coast of India, Pakistan and China had risen by $1 a ton this week because of better demand.

In Pakistan, traders said, local RBD palm olein prices equalled $350-$352.50 a ton C&F Karachi, up from $340 earlier this month as failure in the local cotton seed crop sparked fresh buying interest.

Pakistan may import up to 1.2 million tons of palm oil from March through September this year, up from 800,000-900,000 tons at the same period last year, they said.

In physical palm oil, the March contract for the southern and central regions saw bids at 1,170 ringgit a tonne versus offers at 1,175. Trade was reported at 1,165 to 1,170 for both sides.

The April contract for south and central saw bids at 1,175 ringgit against offers at 1,185. There were deals at 1,170 ringgit for both sides.—Reuters