JAKARTA: Malaysian palm oil futures rose 4.44% on Friday and are set to post a weekly gain, supported by expectations of a drop in April stockpile and gains in some rival vegetable oils.

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.

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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.