PALM OIL FUTURES PALM OIL PHYSICALNov (3rd mth) 1061 Sep (south) 1065Open/High/Low 1038/1062/1033 Prev close 1050Prev settlement 1042 * sellers' quotePALM OIL FUTURES - Closed higher on suspected buying by somelocal refiners. Talks resurface India may reduce palm oil importduty due to good winter oilseed crop.PALM OIL PHYSICALS - Also higher.---------------------------------------------------------------KUALA LUMPUR, Sept 5 (Reuters) - Malaysian palm oil futuresstrengthened at the close on the back of active buying by some localrefiners and talks that India may cut palm oil import duties, traderssaid."This looks like instigated buying," said one trader in Kuala Lumpur.Some refiners, he said, were intentionally buying at the futuresmarket in order to create an assumption that big buyers, such as India andChina, are coming back to the market."These gains are not backed by fundamentals. That's why if the Chicagomarket is down tonight, the local market will follow suit when itreopens," said the trader.The benchmark November futures contract ended up 19 ringgit at 1,061ringgit ($279.21) a tonne after trading as low as 1,033 ringgit. Volumewas at 1,598 lots.Some traders said talks resurfaced in the market that India may cutthe import duties on palm oil."I learn that three refiners are buying palm oil for sales to theIndian market. This leads to speculation that India could do somethingabout the duties," said another trader."I've rang my sources in India, but they couldn't come up withanything yet. But I am sure something is going to happen," he added.In February, the world's largest edible oil importer slapped itsheaviest-ever duty of 75 percent on crude palm oil and 85 percent onrefined palm oil.Indian traders expect this year's winter oilseeds crop output to riseto 12.5-13.0 million tonnes from 11 million tonnes in the previous year,which raised speculation that the government may cut the duties.At the physical side, September crude palm oil for southern andcentral regions were offered at 1,065 ringgit a tonne against bids at1,060. There were trades at 1,050 to 1,060 for both sides.Among refined products, September RBD palm oil was offered at $295.00a tonne, October $297.50 and November/December at $302.50.Offers for September RBD olein were at $310, October at $312.50 andNovember/December at $317.50.September RBD palm stearin was offered at $250 a tonne and October at252.50. September/October palm acid distillate was offered at $202.50.