KUALA LUMPUR, June 7: Malaysian palm futures ended 1 per cent higher on Thursday, lifted by concerns over declining reserves and only a marginal increase in production, dealers said.

Palm oil -- largely used as a cooking oil but also in products ranging from cosmetics to biodiesel -- hit a new high of 2,764 ringgit on Wednesday before succumbing to profit taking later in the day.

The commodity has gained almost 33 per cent in 2007 on the back of dwindling supplies and robust demand from top importers India and China.

Indian traders said rising prices might only dent Indian imports as a spate of custom duty cuts and a strong rupee will cushion the blow. For further details, click on .

Other traded months rose between 8 and 23 ringgit, except for October, which close 10 ringgit lower. Total volume shot up to 19,544 lots of 25 tons, almost double the trade on a routine day.

Malaysian traders said the market might not be able to sustain higher levels if no decision came out of tax proposals from India and Indonesia.

Indonesia said it was considering raising export tax on palm oil export tax to 6.5 per cent if local crude palm oil prices stay above 7,000 rupiah a kilogram until end June, Trade Minister Mari Pangestu said on Thursday.

In Malaysia's physical market, crude palm oil for June shipment in the southern region was quoted at 2,865/2,880 ringgit a ton. Trades were done between 2,845 and 2,860 ringgit.—Reuters