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Malaysian palm oil futures rose on Friday, tracking a sharp rally in crude oil and rival vegetable oils on the Dalian and Chicago exchanges amid geopolitical concerns, though the market was on track to end a four-week run of gains.
The benchmark palm oil contract for August delivery on Bursa Malaysia Derivatives rose 76 ringgit, or 1.98%, to 3,915 ringgit ($921.50) a tonne by the midday break.
The contract has lost a slight 0.05% so far this week.
"The market is reacting today to Israel's bombing of Iran, which has pushed crude oil prices higher," said a Kuala Lumpur-based trader.
Oil prices surged more than 9% on Friday to their highest level in around five months after Israel launched an attack on Iran, escalating tensions in the Middle East and stoking fears of potential disruption to oil supplies.
Stronger crude oil futures boost palm oil's appeal as a feedstock for biofuel production.
The most active soybean oil contract on the Dalian exchange rose 1.4%, while its palm oil contract climbed 2.12%.
Soybean oil on the Chicago Board of Trade (CBOT) gained 1.43%. Palm oil tracks price movements in rival edible oils as it competes for a share of the global vegetable oils market.
Palm Oil Rises On Selective Buying Support
India's palm oil imports rose about 84% month-on-month in May to 592,888 tonnes, a trade body said on Thursday.
The Malaysian ringgit, the currency in which palm oil is traded, rose 0.75% against the US dollar, making the contracts more expensive for holders of foreign currencies.
Palm oil is expected to break through resistance at 3,927 ringgit a tonne and rise towards the 3,962-3,998 ringgit range.
Source: Reuters