JAKARTA: Malaysian palm oil futures rose for a second session on Monday, supported by strength in Dalian vegetable oils and bargain buying, while market participants awaited further direction from Malaysian palm oil exports data for the Jan. 1-20 period.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange gained 55 ringgit, or 1.31%, to 4,245 ringgit ($943.75) a metric ton by midday.

The contract lost 4.51% last week.

“The bargain buying has been the main theme for palm oil markets since Friday…as the palm oil prices now at a discount against soyoil and sunflower oil and also the margins have started to improve at the key destination markets, especially India,” said Anilkumar Bagani, commodity research head at vegetable oil brokerage Sunvin Group.

Market participants are expecting palm oil export data for the Jan. 1-20 period that will be released later in the day.

Palm oil posts weekly drop, weighed down by rival oils

India’s palm oil imports are set to plunge to a near five-year low in January, hit by negative refining margins as the tropical oil’s premium over rivals drives buyers to more competitively priced soyoil, government and industry officials told Reuters.

However, India’s demand may improve ahead of Islamic festivities month of Ramadan, Bagani said.

“There are chances that India may step up for short covering ahead of Ramadan as well as Indian summer, where lots of wedding takes place.”

Dalian’s most-active soyoil contractclimbed 1.72%, while its palm oil contractwere up 1.39%. The Chicago Board of Trade is closed on Monday for holiday.

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

Palm oil FCPOc3 may bounce into a range of 4,265 ringgit to 4,315 ringgit per ton, as it has stabilised around support at 4,106 ringgit, said Reuters technical analyst Wang Tao.