KUALA LUMPUR: Malaysian palm oil futures rose on Thursday, underpinned by firmer soyoil prices and production concerns in the world’s second-biggest producer.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 92 ringgit, or 2.39%, to 3,937 ringgit ($925.92) a metric ton by the midday break. The contract rose 3% in the previous session, its biggest single-session climb since July 24, 2023.

The rebound in soyoil prices are supporting Malaysian palm oil futures, with production concerns in Malaysia lending further support, a Mumbai-based dealer said. Dalian’s most-active soyoil contract rose 0.87%, while its palm oil contract added 2.49%. Soyoil prices on the Chicago Board of Trade were up 0.12%.

Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market. The ringgit, palm’s currency of trade, weakened 0.24% against the US dollar, making the commodity cheaper for buyers holding foreign currencies. Brent crude futures for November were up 0.18% at $73.78 a barrel as of 0504 GMT. Firmer crude oil futures make palm a more attractive option for biodiesel feedstock.

Crude palm oil prices are expected to remain stable this month, as a strengthening ringgit offset tighter supplies and stagnant exports to key destinations, state agency the Malaysian Palm Oil Council (MPOC) said.

The prices would be seen trading in the 3,850-4,050 ringgit a metric ton range in September, MPOC added. India’s edible oil consumption is set to grow at 2%-3% as cooking oils remain affordable despite an import duty hike, a leading importer told Reuters on Wednesday.

Palm oil may retrace into the 3,819-3,833 ringgit per metric ton range, as a bounce from the Sept. 17 low of 3,702 ringgit may end around resistance at 3,893 ringgit, Reuters technical analyst Wang Tao said.