KUALA LUMPUR, June 28: Malaysian crude palm oil futures rose 2.1 per cent on Thursday, reversing more than a week of losses as Indonesia's decision to maintain an export tax on palm oil products for the next few months boosted the market.

The benchmark September contract on the Bursa Malaysia Derivatives Exchange settled up 49 ringgit, or 2.1 per cent, at 2,383 ringgit ($688) a ton.

Other traded months rose between 32 and 79 ringgit in overall trade of 12,195 lots of 25 tons each.

But palm oil is nearly 14 per cent off a historic high of 2,764 ringgit reached earlier this month as worries of a stock build-up due to weakening exports persist.

September palm oil on Singapore's Joint Asian Derivatives Exchange rose 2.5 per cent to $689.50 a ton with distant months posting gains in lacklustre trade.

Indonesia is likely to maintain an export tax on palm oil at 6.5 per cent for the next two to three months to see its effectiveness in lowering local prices, Bayu Krisnamurthi, deputy to the chief economics minister, said on Wednesday.

In Malaysia's physical market, crude palm oil for June and July shipments was quoted at 2,515/2,525 ringgit a ton. Trades were done between 2,500 and 2,515 ringgit.—Reuters