KUALA LUMPUR, Feb 10: Speculative buying drove Malaysian palm oil futures up on Monday as players shrugged off poor exports estimates for the first 10 days of February, traders said.

At the close, the benchmark third-month April contract was six ringgit higher at 1,600 ringgit ($421.05) a ton after trading as low as 1,576 ringgit.

Volume was moderate at 4,785 lots.

Earlier, cargo surveyor Societe Generale de Surveillance Malaysia (SGS) put February 1-10 palm oil exports at 212,297 tons, down from 282,235 tons for January 1-10.

The exports estimates were within expectations. Now people believe exports should pick up later this month, said another trader.

China needs to replenish its stocks after the Lunar New Year holiday, said the trader, referring to one of the world’s main edible oil buyers.

In the physical sector, the February/March crude palm oil contract was offered at 1,610 ringgit a ton against bids of 1,605 ringgit for southern and central regions.

Deals were reported at 1,595 to 1,605 ringgit a ton for south and at 1,595 to 1,600 ringgit for central.—Reuters