Updates with midday break prices and trader's comments

KUALA LUMPUR, May 15 (Reuters) - Malaysian palm oil futures rose on the back of stronger crude oil prices on Friday, even as the contract was poised to log a third consecutive weekly fall.

The benchmark palm oil contract FCPOc3 for July delivery on the Bursa Malaysia Derivatives Exchange gained 43 ringgit, or 0.98%, to 4,436 ringgit ($1,124.75) a metric ton by the midday break.

The contract has declined 2.62% so far this week, taking the three-week decline to 3.5%. Sluggish demand from key markets, softer rival oils, and continued uncertainty surrounding Indonesia's biodiesel mandate weighed on the market this week.

For Friday's rise, a Kuala Lumpur-based trader pointed to crude oil prices remaining supported above the $100 level overnight, with bullish momentum extending into the Asian morning trading session.

Oil prices gained more than 1% after President Donald Trump said China wants to buy oil from the United States, and as concerns persisted over ship attacks and seizures despite Iran saying about 30 vessels had passed through the Strait of Hormuz. O/R

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

Dalian's most-active soyoil contract DBYcv1 fell 0.92%, while its palm oil contract DCPcv1 shed 0.12%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.31%.

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

The ringgit MYR=, palm's currency of trade, weakened 0.36% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

Palm oil may test a support at 4,348 ringgit per metric ton, a break below which could open the way towards 4,296-4,316 ringgit range, Reuters technical analyst Wang Tao said. TECH/C

($1 = 3.9440 ringgit)