KUALA LUMPUR: Malaysian palm oil futures closed more than 2% higher on Monday, paring losses from the previous session, as surveys ahead of closely watched Malaysian Palm Oil Board data pegged tightening November stockpile.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange closed up 101 ringgit, or 2.17%, at 4,751 ringgit ($1,123.17) a tonne, after hitting an intraday higher of 3.9%.

Malaysia’s palm oil stockpile at the end of November likely slipped 3.5% from the previous month to a four-month low of 1.77 million tonnes, a Reuters survey showed.

Production likely rose 1% from October to 1.74 million tonnes, while exports were forecast to expand 11.9% to 1.59 million tonnes. The likely month-on-month drop in November inventories contrasts with historical trends of an average 4% rise over the past 10 years, Ivy Ng, regional head of plantations research at CGS-CIMB Research, said in a note.

The Malaysian Palm Oil Board is scheduled to release its November supply and demand data on Friday. Dalian’s most-active soyoil contract rose 2.7%, while its palm oil contract gained 2.3%. Soyoil prices on the Chicago Board of Trade were up 0.2%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Oil rose by more than $1 a barrel as hopes that the Omicron coronavirus variant may cause mostly mild symptoms boosted riskier assets, making palm a more attractive option for biodiesel feedstock.

The palm market will likely track gains in external markets and trend up this week but the rebound is likely short-lived in the face of the Omicron coronavirus variant, Refinitiv Agriculture Research said in a note. Malaysia’s derivatives exchange is set to commence its night trading session for the crude palm oil contract and other products on Monday.