KUALA LUMPUR: Malaysian palm oil futures rose on Friday and were on track to book a weekly gain, buoyed by bargain buying and stronger rival edible oils.

However, weaker export estimates capped gains. The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange gained 44 ringgit, or 0.97%, to 4,587 ringgit a metric ton at the midday break.

The contract added about 2.46% so far this week and was set to snap a two-week decline.

Crude palm oil futures were trading higher, supported by bargain buying, a weaker Malaysian Ringgit and gains in Chinese vegetable oil futures in Asian hours on the day, Anilkumar Bagani, commodity research head at Sunvin group said.

Dalian’s most-active soyoil contract climbed 1.31% and its palm oil contract added 1.1%.

Soyoil prices on the Chicago Board of Trade (CBOT) rose 0.43%.

Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.

The ringgit, palm’s currency of trade, weakened 0.18% against the US dollar, making the commodity cheaper for buyers holding foreign currencies.

Edible oil: Prices heating up again

“However, the weaker Malaysian palm oil export performance and the absence of fresh demand at the end of the year were seen capping the gains,” Bagani added. Cargo surveyors estimated that Malaysian palm oil exports to have fallen 1.1%-4% between Dec. 1-25 from Nov. 1-25.

Oil prices were little changed but were set for a weekly rise amid optimism that economic stimulus efforts will prompt a recovery in China, the world’s biggest oil importer.

CBOT soybean futures advanced more than 1% on Thursday and soymeal futures touched a two-month high, as worries about dry weather in parts of Argentina prompted speculators to exit short positions, traders said.