Palm oil prices are rising to record levels these days because China and India are stepping up purchases.

A trade report said that the onset of summer and firm yuan currency against the dollar will result in larger quantities of palm oil flowing into China, the world's largest edible oil buyer.

It is estimated that China will buy 370,000 tonnes of Malaysian palm oil in July compared with 253,000 tonnes shipped in July last year.

India has been grappling with poor domestic supplies. Thus India is expected to import more edible oil until local oilseed crops start maturing in October, the report said.

Palm oil constitutes half of India's edible oil imports, which are expected to surge to at least five million tonnes (mt) in the year to October.

The Malaysian palm oil has gained more than 20 per cent this year because of a supply shortage and strong global demand.

The benchmark August contract was up 21 ringgit at 2,410 ringgit ($712) a tonne at the end of the morning session.