KUALA LUMPUR: Malaysian palm oil futures jumped 5% on Tuesday, fuelled by concerns over tight global edible oil supplies due to estimates of lower output in Malaysia and slower than expected US corn planting.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange settled 215 ringgit, or 5.07%, higher at 4,457 ringgit ($1,080.48) a tonne, after closing 1.05% lower on Monday.

"(The) market moved up on even stronger soybean oil prices. Dalian also moved higher, pushing crude palm oil up," a Kuala Lumpur-based trader said.

India, the world's biggest palm buyer, has reduced buying drastically however, the trader added. "Since export is coming off, nearby contract months are not moving as much as forward months and hedge selling is seen in spot months," the trader said.

While data from cargo surveyor Societe Generale de Surveillance showed Malaysian palm oil product exports for May 1-15 rose 22% from the same period of April, traders are concerned the momentum will weaken in the second half of the month.

European Union palm oil imports in the 2020/21 season slipped to 4.61 million tonnes from 5.07 million tonnes a year ago, European Commission data showed on Monday.

The Southern Peninsula Palm Oil Millers' Association estimated production during the first 15 days of May in some parts of Malaysia likely fell 18% month-on-month, traders said.

The US Department of Agriculture (USDA) said US farmers had planted 80% of their intended corn acreage as of Sunday, at the lower end of the 79% to 88% range estimated on average in a Reuters analyst poll.

Dalian's most-active soyoil contract gained 1.1%, while its palm oil contract rose 0.6%. Soyoil prices on the Chicago Board of Trade were up 1.6%.

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