Prices for Malaysian palm oil have risen for the third time in a row due to the strengthening of soybean oil prices and concerns about production.

On Thursday, futures for Malaysian palm oil saw an increase for the second consecutive session due to rising soybean oil prices and concerns related to production at the world's second-largest producer.

The benchmark contract for palm oil for December delivery on the Bursa Malaysia Derivatives Exchange closed 34 ringgit, or 0.88% higher, reaching 3879 ringgit (921.82 US dollars) per tonne.

Earlier in the session, the contract rose by 3.17% and reached a peak of 3967 ringgit per metric ton, but then the growth slowed down.

A dealer from Mumbai confirmed that the increase in soybean oil prices is influencing the rise in Malaysian palm oil prices, and concerns regarding production in Malaysia are also providing additional support.

The most active soybean oil contract in Dalian rose by 1.21%, while the CPO palm oil contract increased by 3.6%. Soybean oil prices on the Chicago Mercantile Exchange rose by 0.05%.

Palm oil prices follow changes in other edible oils as they all compete for their share in the global vegetable oil market.

The ringgit strengthened by 0.87% against the US dollar, making the commodity more expensive for buyers holding foreign currency and limiting price increases.

Oil prices rose after the Federal Reserve's interest rate cut, but Brent crude oil is still near its lowest level this year – below 75 dollars per barrel, due to expectations of reduced global demand.

Futures for Brent crude oil for November delivery rose by 1.19%, reaching 74.53 dollars per barrel. The price of crude oil affects the attractiveness of palm oil for use in biodiesel.

It is expected that crude palm oil prices will remain stable this month as the strengthening ringgit compensates for reduced supplies and a slowdown in exports to key destinations, according to the Malaysian Palm Oil Council (MPOC).

MPOC also forecasts that in September prices will fluctuate in the range of 3850 to 4050 ringgit per tonne.

It is expected that edible oil consumption in India will increase by 2-3%, as cooking oils remain affordable despite an increase in import duties, reports a leading importer to Reuters agency.