KUALA LUMPUR: Malaysian palm oil futures rose on Tuesday to its highest closing in nearly two-weeks, with concerns over lower end-May inventories supporting the market while traders awaited details on Indonesia’s export levy adjustment.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 67 ringgit, or 1.04%, to 6,520 ringgit ($1,484.01) a tonne.

The contract rose for a fourth session in five, hitting its highest closing since May 26.

Lower Malaysian stockpiles and slow resumption of exports from Indonesia supported palm prices, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Higher soybean oil and crude oil prices also lent support to the contract, he added.

A Reuters survey released on Friday pegged end-May inventories in Malaysia to drop 6% from the month before to 1.54 million tonnes due to slow output and a surge in exports.

Adding to the output concerns, the Malaysian Estate Owners’ Association on Monday said planters could suffer more production losses due to a shortage of about 120,000 workers.

Meanwhile, Indonesia adjusted its palm oil export levy, a senior official at the economic ministry said on Sunday, without giving details.

The world’s biggest producer has issued around 302,000 tonnes of palm oil export permits since it restarted exports.

Top buyer India’s palm oil exports in May were its highest in seven months and up 15% on April as the country overcame curbs on Indonesian exports by sourcing more of the commodity from Malaysia, Thailand and Papua New Guinea, five industry officials said.

Dalian’s most-active soyoil contract rose 1.1%, while its palm oil contract gained 1%. Soyoil prices on the Chicago Board of Trade were up 0.2%.