Updated with midday break prices, analyst comment on paragraph 3

By Dewi Kurniawati

JAKARTA, Nov 8 (Reuters) -Malaysian palm oil futures were set for a third straight week of gains on Friday as prices rose on the strength of rivalDalian vegetable oils.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange gained 51 ringgitor 1.03%,to 5,003 ringgit a metric ton in early trade, rising for a third straight session.

The contract has gained 2.77%so far this week.

"The futures gapped up during opening and faced resistance at prices above 5,000 ringgit. However, it stayed supported near this level amid the broader vegetable oils rally, indicative of strong bullish sentiment," said Darren Lim, commodities strategist at Singapore-based brokerage Phillip Nova.

Dalian's most-active soyoil contract DBYcv1 rose 0.48%,while its palm oil contract DCPcv1 gained 1.65%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.39%.

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

The ringgit MYR=, palm's currency of trade, strengthened 0.5%against the U.S. dollar, making the vegetable oil more expensive for buyers holding foreign currencies.

China's demand for palm oil products in 2024 is estimated to drop 30% from a year earlier as high prices make it less attractive than soyoil and vegetable oil demand has stagnated, an executive at Cargill's Chinese unit said.

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.

Oil prices fell slightly as the risk of ahurricane in the Gulf of Mexico significantly affecting U.S. oil and gas output declined, while the market weighed how President-elect Donald Trump's policies might affect supplies.O/R

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Palm oil FCPOc3 may retest resistance at 5,023 ringgit, a break above which could open the way towards 5,076-5,112 ringgit, according to Reuters technical analyst Wang Tao. TECH/C

Reporting by Dewi Kurniawati; Editing by Subhranshu Sahu and Sumana Nandy

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European edible oil prices/trades OILS/E