KUALA LUMPUR, May 3: Malaysian crude palm oil futures rose 2 per cent on Thursday, boosted by strong exports and bullish comments from top industry analyst Dorab Mistry.

The benchmark third-month July contract on the Bursa Malaysia Derivatives Exchange was up 44 ringgit, or 2 per cent, at 2,258 ringgit ($660) a ton at the end of the morning session.

“The uptrend is still intact, exports are rising and production has not picked up that much,” said one dealer. “And Mistry’s comments have added fuel to the fire.” Malaysian palm oil prices will soon reach 2,400 ringgit a ton and may cross 2,500 ringgit, Mistry told an industry conference in Jakarta.

The market has gained 13pc this year after surging 40pc in 2006 on the back of demand from the biodiesel and food sectors.

The most active month is just 1.3 per cent below an 8-year high of 2,288 ringgit reached last month. Other traded contracts were up between 10and 52 ringgit. Overall volume stood at 3,541 lots of 25 tons each.

Malaysia’s exports picked up in April after months of slowdown, because of demand from the world's top importers, China and India.

Exports of Malaysian palm oil products in April rose 15 per cent from March to 1,139,535 tons, according to cargo surveyor Intertek Testing Services.—Reuters