KUALA LUMPUR: Malaysian palm oil futures climbed more than 2% on Friday, supported by stronger soyoil and crude oil prices, along with positive domestic export estimates.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 134 ringgit, or 2.85%, to 4,830 ringgit ($1,103.24) a metric ton at the midday break.

The contract is up 3.53% so far this week and is on track for its second consecutive weekly gain.

The palm market is reacting towards stronger soyoil and crude oil prices, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

“The recent strong export pace is also keeping the positive sentiment in the palm oil market.”

Cargo surveyor, Intertek Testing Services, estimated that exports of Malaysian palm oil products rose 11.5% in October, while AmSpec Agri Malaysia’s data is due later in the day.

Dalian’s most-active soyoil contract rose 1.73%, while its palm oil contract added 2.12%.

Soyoil prices on the Chicago Board of Trade were up 1.77%. Palm oil tracks price movements of rival edible oils as it competes for a share in the global vegetable oils market.

Palm jumps over 2% on low inventory, expectations of weak output

Oil prices extended gains, climbing more than $1 a barrel to pare weekly losses, as geopolitical tensions in the Middle East rose following reports that Iran was preparing a retaliatory strike on Israel from Iraq in the coming days.

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

The ringgit, palm’s currency of trade, weakened 0.09% against the US dollar, making the commodity cheaper for buyers holding foreign currencies.

Indonesia raised its crude palm oil reference price for November to $961.97 per metric ton from $893.64 in October, a trade ministry official told Reuters.

The new price will put the export tax for November at $124 per ton.