KUALA LUMPUR: Malaysian palm oil futures jumped 1 percent in early trade on Thursday, recovering from a two-week low hit in the previous session, on the back of strength in related edible oils.

Cargo surveyor data showing rising export demand and forecasts of stronger demand from China also supported the market, said traders.

China is expected to import 450,000 tonnes of palm oil per month in August and September, compared with a forecast of 250,000 tonnes for July, according to a report by the China National Grain and Oils Information Center (CNGOIC).

Chinese traders booked seven palm oil cargoes of around 80,000 tonnes on Tuesday due to lower prices in overseas markets, CNGOIC said.

As prices in overseas markets further weaken and futures on China's Dalian Commodity Exchange remain strong, local traders are expected to book more cargoes and domestic palm oil stocks will start growing in August, it added.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.03 percent at 2,551 ringgit ($594.92) at the midday break.

It had hit a two-week low of 2,494 ringgit in intraday trading on Wednesday before closing 0.5 percent higher.

Traded volumes stood at 11,507 lots of 25 tonnes each at the midday break on Thursday.

"Dalian and soyoil edged higher," said a Kuala Lumpur-based futures trader, referring to related edible oils on the Dalian and soyoil on the Chicago Board of Trade.

"Exports and news on China's buying also supported the palm market."

Palm oil shipments from Malaysia, the world's second largest producer after Indonesia, rose 10.5 percent during July 1-20 compared with a month earlier, according to data from cargo surveyor Intertek Testing Services.

In other related oils, the December soybean oil contract on the Chicago Board of Trade was up 0.03 percent, while the September soybean oil on the Dalian Commodity Exchange rose 1.1 percent.