JAKARTA: Malaysian palm oil futures closed lower on Friday but posted weekly gains, while market participants awaited March inventory data from the Malaysian Palm Oil Board (MPOB).

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange fell 55 ringgit, or 1.25%, to 4,345 ringgit ($915.70) a metric ton.

For the week, however, it gained 3.60%, its best week in three. “Futures are consolidating while waiting for the monthly MPOB data,” a Kuala-Lumpur based trader said.

Malaysia’s palm oil inventories are expected to decline 6.65% from the prior month to an eight-month low of 1.79 million tons at the end of March, a Reuters survey showed on Thursday.

The MPOB is scheduled to release the data on April 15. China’s Dalian Commodity Exchange is closed on Thursday and Friday for the Qingming festival. Soyoil prices on the Chicago Board of Trade edged up 0.18%.

Palm oil is affected by price movements in related oils as they compete for a share of the global vegetable oils market. Soybeans dropped on Thursday following lower-than-expected weekly export sales data from the US Department of Agriculture, seasonally rising supplies from the South American harvest and falling soyoil prices. India’s rapeseed and mustard output is likely to rise 7% from last year to a record 12.09 million metric tons in 2024. This will help the world’s biggest vegetable oil importer cut back on edible oil imports.

Oil prices extended gains on Friday and headed for a second weekly gain, supported by geopolitical tensions in Europe and the Middle East, concerns over tightening supply and optimism about global fuel demand growth as economies improve.

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