JAKARTA: Malaysian palm oil futures rose on Tuesday, posted the biggest daily gain since Nov.1 after posted sharp decline in previous session as smaller-than-expected inventories, a weaker ringgit and firmer crude oil and soyoil prices underpinned the market.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 150 ringgit, or 4.01%, to 3,887 ringgit ($878.22) per tonne by the afternoon closing. The contract fell 6.36% on Monday in its biggest daily drop since Sept. 28.

“The Malaysian Palm Oil Board just released November data, and the stockpile was much smaller than estimated,” a trader in Kuala Lumpur said.

Malaysia’s palm oil stocks fell for the first time in six months by 4.98%, stood at 2.29 million tonnes by end of November, as production slumped amid a slight pick-up in exports, data from the Malaysian Palm Oil Board (MPOB) showed.

The ringgit, palm oil’s currency of trade, dipped for a sixth session against the US dollar. A weaker ringgit makes palm oil more attractive for holders of foreign currencies.

World’s top palm oil exporter Indonesia plans to set the crude palm oil reference price for Dec. 16-31 at $871.99 per tonne, which would put the export tax for the period at $52 per tonne and the export levy at $90 per tonne.

Dalian’s most active soyoil contract rose 0.14%, while its palm oil contract fell 0.86%. Soyoil prices on the Chicago Board of Trade rose 0.95%.

Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.

Oil prices rose for a second day as a key pipeline supplying the United States, the world’s biggest crude consumer, remained shut and on expectations loosening COVID restrictions in China, the second-biggest user globally, will boost demand.

Stronger crude futures make palm a more attractive option for biodiesel feedstock.

Palm oil may test a resistance at 3,861 ringgit a tonne, a break above which could lead to a gain to 3,945 ringgit.