JAKARTA: Malaysian palm oil futures edged up for the week on Friday as it rose for three straight sessions, supported by expectations of a drop in April stockpile and gains in some rival vegetable oils.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 172 ringgit, or 5.02%, to 3,597 ringgit ($811.05) on closing.

The contract gained 7.76% for the week.

“Bullish Malaysian Palm Oil Board poll figures lifted the market. Palm oil inventory was expected to drop between 8.5% and 9.8%,” a Kuala Lumpur-based trader told Reuters, adding that gains Chicago Board of Trade soybean oil and Dalian palm oil also lending support to the contract.

Malaysia’s palm oil inventories at the end of April are forecast to drop to their lowest level in 11 months as domestic use rises amid flat production, a Reuters survey showed on Friday.

BMI, a unit of Fitch Solutions, in a note distributed on Friday forecast that palm oil prices will average 3,400 per tonne in 2024.

Palm oil surges on stronger rival oils and poll figures

India’s palm oil imports in April fell 30% from a month earlier to hit a 14-month low, as its premium over rival soft oils prompted price-sensitive buyers to shift to sunflower oil and soyoil, five dealers told Reuters on Wednesday.

Malaysia’s palm oil exports in April fell between 18% and 21% compared with the month before, cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia said earlier this week.

Dalian’s most-active soyoil contract gained 1.31%, while its palm oil contract increased 3.39%. Soyoil prices on the Chicago Board of Trade were up 1.54%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.