Malaysian palm oil futures posted gains on Friday, reversing a two-day slide as traders looked to strength in rival vegetable oils traded in Dalian.
The rally in Kuala Lumpur was driven by broad-based support from the Chinese market, where soybean and rapeseed oil prices firmed, providing a floor for palm oil despite lingering bearish sentiment in the broader complex.
Despite the intraday recovery, the contract is on track to close the week in negative territory.
The weekly loss extends a period of volatility for the benchmark agricultural commodity, which has struggled to maintain momentum amid shifting global supply dynamics and fluctuating crude oil prices that often influence biodiesel demand expectations.
The market's direction remains tightly coupled with developments in China, the world's largest importer of palm oil.
Traders are closely monitoring Dalian futures for signals on Chinese demand, as any sustained weakness in Chinese vegetable oils could quickly drag Malaysian prices back down.