Malaysian palm oil futures managed a second consecutive gain on Thursday, reversing early losses as stronger crude oil and firmer rival edible oils provided support. The benchmark October contract closed at 4,679 ringgit per metric ton, up 15 ringgit, even as market participants remained cautious and trading activity stayed below average. Main Developments Dalian palm olein rose 0.47% during the Asian afternoon session, while Chicago soyoil gained 0.4%, helping buoy palm oil prices. However, Dalian's most-active soyoil contract fell 0.18%, reflecting mixed sentiment across edible oil markets. A Kuala Lumpur-based trader noted that the October contract traded lacklusterly in the morning session, with below-average volume as traders stayed on the sidelines. The ringgit remained unchanged against the U.S. dollar, removing currency-driven volatility. Read also: Why Indian auto stocks are surging despite global rate fears Background Palm oil tracks the price movements of rival edible oils because it competes directly for market share in the global vegetable oils market. Renewed attacks between the United States and Iran disrupted oil flows through key shipping routes, pushing crude oil prices higher for a second day. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock, a dynamic that has historically supported palm prices. Indonesia, the world's largest palm oil producer, raised its palm oil-based biodiesel allocation for 2026 to 16.75 million kilolitres to meet additional demand from the B50 biodiesel mandate launched earlier this month. Why It Matters Higher palm oil prices affect global food costs, as palm is used in everything from cooking oil to processed foods. The biodiesel link means geopolitical tensions that raise crude oil prices can indirectly boost palm demand, creating ripple effects for consumers and producers alike. What's Next Traders will watch for further cues from crude oil markets and rival edible oil prices, particularly Chicago soyoil and Dalian contracts. Indonesia's expanded biodiesel mandate could sustain demand, but cautious trading suggests the market remains wary of sudden reversals.