SINGAPORE: Malaysian palm oil rose for a second consecutive session on Friday, tracking firm crude oil prices, although the market logged a weekly loss.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed 0.4% higher at 3,976 ringgit ($848.12) per metric ton. The contract has lost over 2% this week.

A lack of demand and rising supplies are likely to keep a lid on prices, said a Kuala Lumpur-based trader.

“This 3,800-4,000 ringgit trading range will continue unless we see really good demand.”

Dalian’s most-active soyoil contract gained 1.8%, while its palm oil contract rose 2%. Both contracts were also down for the week.

Meanwhile, soyoil prices on the Chicago Board of Trade fell 0.5%.

Palm oil prices are influenced by the movements of related oils as they vie for a portion of the global vegetable oils market.

Palm oil almost flat as monthly export, production data eyed

Oil prices were little changed after rising in the previous session as reassurances from OPEC+ members Saudi Arabia and Russia indicated readiness to pause or reverse output agreements.

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

The market spotlight is on the Malaysian Palm Oil Board’s (MPOB) monthly data due on June 10. According to a Reuters poll, palm oil inventories by the end of May were seen at 1.75 million metric tons, up 0.39% from April.

The poll projected exports of palm oil products to have surged by 14.32% in the same period to 1.41 million tons.

India’s palm oil imports rose by 12.4% in May on a monthly basis, five dealers told Reuters. India is the world’s biggest importer of vegetable oils.