Updates with midday break prices, comments in paragraph 4

By Dewi Kurniawati

JAKARTA, Aug 2 (Reuters) -Malaysian palm oil futures rose on Friday amid higher rival oils, although persistent strength of ringgit capped upside momentum and kept the contract on track for a second consecutive weekly drop.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange gained 31 ringgit, or 0.8%, to 3,901 ringgit ($860.96) a metric ton by the midday break.

The contract has fallen 1.05% so far in the week.

"Signs of recovery in Dalian palm olein and Chicago's soyoil have lifted the futures today. Nonetheless, persistent strength of ringgit has capped the upside momentum," a Kuala Lumpur-based trader said.

Dalian's most-active soyoil contract DBYcv1 edged 0.05% higher, while its palm oil contract DCPcv1 gained 0.95%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.55%.

Palm oil tracks price movements of rival edible oils, as they compete for a share in the global vegetable oils market.

Indonesia's plan to revise domestic market obligation (DMO) rules for palm oil will not affect the DMO export ratio. Export quotas are set at four times the volume of palm oil that companies supply locally. Extra allotments are given to companies that sell in smaller, household-friendly sizes.

The ringgit, palm's currency of trade, strengthened 0.42% against the U.S. dollar, making the vegetable oil less attractive for foreign currency holders.

Malaysian palm oil exports in July were seen rising between 22.8% and 30.91%, cargo surveyor Amspec Agri and Intertek Testing Services said.

Cargo surveyor Societe Generale de Surveillance (SGS) estimated exports stood at 1.48 million tons, according to LSEG, a 23.6% jump from June.

Palm oil is expected to retest support at 3,849 ringgit per metric ton, a break below could open the way towards 3,809 ringgit, Reuters technical analyst Wang Tao said TECH/C.

($1 = 4.5310 ringgit)

Reporting by Dewi Kurniawati; Editing by Subhranshu Sahu

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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