The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 152 ringgit, or 4.44%, to 3,577 ringgit ($806.36) by midday break.
The contract has gained 7.16% so far in the week.
The palm oil futures rose "following the strength from CBOT soybean oil and Dalian RBD palm olein. Bullish MPOB poll figures lifted the market," a trader told Reuters.
Malaysia's palm oil inventories at the end of April are forecast to drop to their lowest level in 11 months as domestic use rises amid flat production, a Reuters survey showed on Friday. BMI, a unit of Fitch Solutions, in a note distributed on Friday said it forecast that palm oil prices will average 3,400 per tonne in 2024.
India's palm oil imports in April fell 30% from a month earlier to hit a 14-month low, as its premium over rival soft oils prompted price-sensitive buyers to shift to sunflower oil and soyoil, five dealers told Reuters on Wednesday. Palm oil FCPOc3 may bounce further to 3,504 ringgit per tonne, as suggested by a falling channel. Dalian's most-active soyoil contract gained 1.01%, while its palm oil contract increased 2.95%. Soyoil prices on the Chicago Board of Trade were up 1.24%.
Palm oil is affected by price movements in related oils as
they compete for a share in the global vegetable oils market.
($1 = 4.4360 ringgit)
(Reporting by Dewi Kurniawati and Bernadette Christina Munthe;
Editing by Sohini Goswami)
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