KUALA LUMPUR: Malaysian palm oil futures rose over 1% on Tuesday, up for a second straight day, lifted by bullish rival soyoil, while signs of low inventory and rising exports further boosted sentiment.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange rose 51 ringgit, or 1.36%, to 3,790 ringgit ($917.23) a tonne by the midday break.

"The recent rally in futures also supported the cash market prices to balloon and keep crude palm oil import margins in positive territory," said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Prices of nearby months is at a huge premium over forward month contracts, he said.

"This huge inverse amidst rising production is making Indian buyers hesitant to purchase forward months, resulting in lower-than-expected Indian monthly palm oil imports and creating a lower-than-average port stocks scenario," Bagani added.

India is the world's biggest palm oil buyer.

In Malaysia, the world's second largest producer, palm oil inventories likely inched higher by the end of March as production advanced for the first time in six months, though a surge in exports kept supply tight, a Reuters survey showed on Monday.

Palm oil exports from Malaysia during April 1-5 rose 10.6% from the same period in March, cargo surveyor Intertek Testing Services said on Monday.

Sri Lanka on Monday banned imports of palm oil and new palm plantations, and told producers to uproot existing plantations in a phased manner, in a surprise move that baffled the edible oil industry.

Dalian's most-active soyoil contract gained 2.4%, while its palm oil contract were up 1.5%. Soyoil prices on the Chicago Board of Trade rose 0.7%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.