Palm oil headed for a second weekly advance on expectations for stronger demand from India, and a lift from higher crude prices.

Palm oil climbed for a second day as a surge in crude prices fueled by renewed US-Iran hostilities brightened demand prospects for biofuels.

Palm oil edged lower, weighed down by declining crude prices and expectations for strong output from the second-biggest grower, Malaysia.

The rollout of a pioneering palm-diesel blend is set to stretch Indonesian biofuel makers to their limits and tighten global supplies of the tropical oil by diverting it away from export markets.

Palm oil futures posted the biggest drop in more than a month, tracking declines in crude and soy oil prices, while a strengthening ringgit added to demand headwinds.