KUALA LUMPUR: Malaysian palm oil futures rose more than 3% to hit a near three-week high on Wednesday after world's biggest vegetable oil buyer India cut its import tax, stoking hopes for a rise in demand.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 116 ringgit, or 3.26%, at 3,669 ringgit ($883.67) a tonne during early trade.

Palm rose for a second straight day to its highest level since June 11.