16/5/07  (Bloomberg) -- Palm oil in Malaysia rose for a fifth day in six after Indian trade data showed imports of the world's most traded vegetable oil rose in April to a four-month high.

India, the world's second-largest user of palm oil, imported 254,369 metric tons of the oil favored for making solid cooking fats in April, 20 percent more than in March, the Solvent Extractors' Association said yesterday.

Palm oil, conventionally used for cooking and to derive chemicals for making soaps and detergents, is also used as a fuel additive, squeezing supplies. Palm oil futures have averaged 2,058 ringgit ($605) since the year started, 42 percent higher than the same period a year ago after 17 weeks of gains.

``Although prices are high, export demand is good,'' said Francis Lee, a trader at Kuala Lumpur-based Okachi Malaysia Sdn. There is ``strong demand from China, from India,'' said Lee, who has traded palm oil futures for more than a decade.

Palm oil for July delivery rose as much as 49 ringgit, or 2.1 percent, to 2,395 ringgit a metric ton on the Malaysia Derivatives Exchange today and ended the morning session up 1.8 percent at 2,389 ringgit.

Malaysia and Indonesia control about 90 percent of global palm oil supply. Malaysian exports gained in March and April, reversing a four-month decline, according to data from the Malaysian Palm Oil Board.

``There's fear of stock depleting below the 1 million ton mark,'' Lee said. ``The strength of demand has overwhelmed production.''

In April, palm oil stockpiles in Malaysia dropped 12 percent to the lowest since May 2004 to 1.18 million tons. Malaysia's largest palm oil export market is China.

Indonesia has overtaken Malaysia as the world's largest palm oil producer.