KUALA LUMPUR: Malaysian palm oil futures closed higher on Thursday, boosted by a surge in exports in the first 10 days of June as more nations eased coronavirus-induced restrictions.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 19 ringgit, or 0.81pc, at 2,368 ringgit ($558.10) a tonne, having risen as much as 1.36pc earlier.

Malaysia's June 1-10 palm oil exports jumped between 60pc and 64pc from the previous month, cargo surveyors said on Wednesday.

Traders and analysts are expecting robust exports this month, with the world's largest edible oil buyer - India - resuming purchases from Malaysia, which offers a competitive advantage over rival Indonesia after freeing palm oil from export duty for this year.

"We expect restocking activities to continue in June and July in view of zero export tax in Malaysia and low palm oil stock levels in China and India," Ivy Ng, regional head of plantations research at CIMB Investment Bank, said in a note.

"This will be key to keeping (June) stocks in check as we head into the peak production season."

The Malaysian Palm Oil Council projected third-quarter palm oil exports to rise 2.5pc from the last quarter to 4.56 million tonnes as demand recovers.

Palm oil fell 1.6pc on Wednesday on expectations of a jump in production this month.

June production may increase 5.3pc on the month to 1.74 million tonnes, Kenanga Investment Bank equity analyst Adrian Kok said.

Malaysia's palm stockpile fell 0.5pc to 2.03 million tonnes at the end of May from the previous month, according to the Malaysian Palm Oil Board data released on Wednesday.

Dalian's most-active soyoil contract fell 0.66pc, while its palm oil contract slipped 0.88pc. Soyoil prices on the Chicago Board of Trade were down 0.46pc.

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