Updated with closing prices

By Dewi Kurniawati

JAKARTA, Nov 7 (Reuters) -Malaysian palm oil futures closed higher and reversed early losses on Thursday, supported by gains from rival vegetable oils at the Dalian market.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 33 ringgit or 0.67%, to 4,950 ringgit ($1,125.00) a metric ton on the closing.

Dalian's most-active soyoil contract DBYcv1 rose 1.78%, while its palm oil contract DCPcv1 gained 2.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.56%.

Palm oil tracks the price movements of rival edible oils as it competes for a share in the global vegetable oils market.

Indonesia's government is proposing to increase the mandatory blend of palm oil-based fuel in biodiesel to 50% in 2028, Edi Wibowo, director of bioenergy at the Energy and Mineral Resources Ministry, told an industry conference on Thursday.

India's vegetable oil imports are estimated to decline further in the 2024-25 season to 15 million tons, as favourable weather will likely boost domestic production, an industry group said at the conference.

India's palm oil imports surged 59% in October to a three-month high compared to the previous month, as refiners boosted purchases to replenish stocks depleted by lower-than-usual imports in recent months and a strong festive demand.

The ringgit MYR=, palm's currency of trade, traded flat against the U.S. dollar on the closing. A weaker ringgit makes vegetable oil cheaper for buyers holding foreign currencies.

Oil held steady on Thursday after a sell-off triggered by the U.S. presidential election, with a stronger dollar and lower crude imports in China balancing supply risks from a Trump presidency and output cuts caused by Hurricane Rafael.O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

($1 = 4.4000 ringgit)

Reporting by Dewi Kurniawati; Editing by Sumana Nandy, Varun H K and Vijay Kishore

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01.
* To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.
* Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11.

Vegetable oils OILS/ASIA1
Malaysian palm oil exports SGSPALM1
CBOT soyoil futures 0#BO:
CBOT soybean futures 0#S:
Indian solvent SOLVENT01
Dalian Commodity Exchange DC/MENU
Dalian soyoil futures 0#DBY:
Dalian refined palm oil futures 0#DCP:
Zhengzhou rapeseed oil 0#COI:
European edible oil prices/trades OILS/E