KUALA LUMPUR (March 27 2003) : Malaysian palm oil futures climbed at theend of a choppy day on Wednesday, lifted by refiner covering and atechnical rebound, traders said.

Traders dealing with buyers in the Middle East said shipments to theregion were smooth.

Freight brokers also said palm oil was being shipped to Red Sea ports andto Europe through the Suez Canal without disruptions.

"We don't see any problem at all. Middle East countries are still buyingpalm oil. I've chartered vessels for April shipments," said one dealer.

The Middle East and Europe account for 40 percent of Malaysia's total palmoil exports.

At the close, the benchmark third-month June contract was up 14 ringgit at1,405 ringgit ($369.74) a tonne after touching a low of 1,371 ringgit.

Volume was heavy at 10,258 lots. "Refiners are covering back theirpositions," said one dealer.

"I also heard there was some buying by India today, but the amount is notsignificant," said the dealer, referring to the world's largest edible oilconsumer.

Chartists said the downtrend was intact, adding that any technical reboundwould not be sustained.

They pegged downside targets at 1,350 and 1,327 ringgit.

In India, traders said the country had increased palm oil buying for Aprilarrival cargoes but was avoiding signing long-term contracts on concernsthe war in Iraq could be prolonged.

In the past 10 days, Indian importers have contracted to buy about 80,000tonnes of palm oil for April arrival, traders said on Wednesday, addingthat the country imported just 160,000 tonnes in February.

In the physical crude palm oil market, sellers offered March/April crudepalm oil at 1,425 ringgit a tonne against bids of 1,420 ringgit for thesouthern region.

Deals were reported at 1,400 to 1,420 ringgit.

March/April CPO for central region was offered at 1,420 ringgit againstbids of 1,415.

Deals were done at 1,400 to 1,420 ringgit.

PALM OIL FUTURES:

June (3rd month): 1405 ringgit

Open/High/Low: 1395/1410/1371 ringgit

Previous settlement: 1391 ringgit

PALM OIL PHYSICALS:

March (south): 1425 ringgit

Previous close: 1415 ringgit

PALM OIL FUTURES: Rebounded. Resistance seen at 1,415 ringgit. Downsidetargets pegged at 1,350 and 1,327 ringgit.

PHYSICALS: Also firmed on scattered demand by India.-Reuters