SINGAPORE: Malaysian palm oil futures reversed losses incurred in the previous session and jumped over 2% on Friday, as the contract tracked gains in rival soybeans on the Chicago Board of Trade (CBOT).

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell 2.3% to 4,007 ringgit ($967.64) a tonne in early trade. “Palm oil is up thanks to firmer externals,” a Kuala Lumpur trader told Reuters.

The contract is set to edge 0.3% higher over the week, after losing more than 11% the week earlier.

CBOT soybean futures rallied on Thursday for the first time in eight sessions, lifted by short-covering and technical buying, and spillover support from surging corn prices.

Its soybean oil contract was last up 0.5%.

Meanwhile, Dalian’s soyoil contract and palm oil contract rose 1.5% and 1.4%, respectively. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil is expected to retest a resistance at 4,010 ringgit per tonne, a break above which could lead to a gain to 4,132 ringgit, Reuters analyst Wang Tao said.

Chicago corn futures climbed 0.9% on Friday with the market poised for a second week of gains as strong demand for the feed grain supported prices. Wheat eased, while soybeans edged higher.

Oil prices rose 1% on Thursday, bolstered by strong US economic data that offset investors’ concerns about the potential for a rise in Iranian supplies.