Palm oil headed for a second weekly advance on expectations for stronger demand from India, and a lift from higher crude prices. The tropical oil has benefited from improving import appetite in the world's top buyer.

Benchmark futures in Kuala Lumpur climbed as traders anticipated increased purchasing by Indian refiners ahead of festival season. The South Asian nation's buying patterns often dictate global price direction given its massive consumption base.

Meanwhile, rising crude prices bolstered the biofuel mandate outlook, making palm-based biodiesel more competitive. Malaysia's B30 program and Indonesia's B35 blending requirements create a floor for prices when energy markets rally.

Analysts note that palm oil's discount to rival oils like soybean and sunflower also supports demand switching. However, gains may be capped by ample production forecasts and potential export policy shifts in major producing nations.