KUALA LUMPUR, June 4: Malaysian crude palm futures closed 1.5 per cent higher on Monday, stopping short of a new high as firm soyaoil and concerns over supplies boosted the market.

The benchmark August contract finished up 39 ringgit, or 1.5 per cent, to 2,601 ringgit ($766) a ton, just 4 ringgit shy of previous record high on Friday.

Even though trade is dull, the problem with supply will keep prices up, said one trader.

Overall trade fell to 6,475 lots of 25 tons each, just half of what is traded on a routine day.

On Friday, Chicago Board of Trade soyaoil futures were supported by gains in soybean and soyameal. July soyaoil closed 0.10 cent higher at 35.81, with the back months up 0.06 to 0.20 cent.

Palm oil gained more than 30 per cent this year on dwindling supplies at home and robust demand from top importers India and China. It surged 40 per cent last year mainly on the back of biodiesel demand.

Indian officials said on Monday that another duty cut was likely, after a cut in the customs duty on palmoil in April by 10 percentage points to 50 per cent, to help counter high international prices. Exports of Malaysian palm oil products in May rose 3.4per cent to 1,178,086 tons from 1,139,535 tons shipped in April, cargo surveyor Intertek Testing Services said.

Trades were done at 2,750 ringgit.—Reuters