* Palm oil also pressured by stronger ringgit
* May drop to 2,190 rgt as failed to break 2,227 -analyst

23/07/2015 (Reuters) - Malaysian palm oil pulled backfrom a one-week high on Wednesday, with traders saying they expected an increase in production in the third quarter that could eliminate any shortage of the edible oil resulting from low output in July.

By the day's close, benchmark palm oil for October delivery on Bursa Malaysia Derivatives was down 0.6 percent to 2,207 ringgit ($582.25) a tonne.

Expectations of low output in July lifted palm oil to 2,223 ringgit on Tuesday, its highest since July 14.

"Buyers are cautious of buying fresh. The lower output in July will be offset by better production in the third quarter," said a trader with a local commodities brokerage in Kuala Lumpur.

Exports of Malaysian palm oil products for July 1-20 fell 15.5 percent to 907,574 tonnes from the same period a month ago, cargo surveyor Intertek Testing Services said in its latest estimate on Monday.

Another cargo surveyor, Societe Generale de Surveillance, reported a 16.1 percent drop in exports over the same period.

Volume on Wednesday stood at 29,998 lots of 25 tonnes each, below the roughly 35,000 lots usually traded in a day. Volumes were likely lower due to a recent Muslim holiday that was affecting business in Malaysia and Indonesia, another trader said.

Wang Tao, a Reuters market analyst for commodities technicals, said palm oil may drop to 2,190 ringgit a tonne, as it had failed to break a resistance level at 2,227 ringgit.

Indonesia, the world's top palm oil producer, began collecting a levy on palm oil exports last week after several delays, a government official said on Wednesday, with the aim of adding up to 4.5 trillion rupiah ($336 million) this year to state coffers.

The tariff was largely priced in and not expected to have a further impact on prices, the second trader said. "The market has been bracing for it for the past four months," the trader said.

The Malaysian ringgit gained 0.41 percent against the dollar on Wednesday, making palm oil less attractive to international buyers holding other currencies.

U.S. August soyoil slipped 0.31 percent in afternoon Asian trade.

Crude oil prices fell on Wednesday after an unexpected rise in U.S. crude stocks, adding to a picture of global oversupply that has dragged down values over the past year.

 Palm, soy and crude oil prices at 1052 GMT
                                                                
 Contract        Month    Last   Change     Low    High  Volume
 MY PALM OIL      AUG5    2207   -12.00    2195    2212     242
 MY PALM OIL      SEP5    2206   -11.00    2196    2218    3526
 MY PALM OIL      OCT5    2207   -13.00    2197    2221   17761
 CHINA PALM OLEIN JAN6    4952   +28.00    4912    4988  740424
 CHINA SOYOIL     JAN6    5674   +12.00    5648    5714  502226
 CBOT SOY OIL     DEC5   32.26    -1.70   32.19   32.54    5359
 INDIA PALM OIL   JUL5  431.50    -1.70  431.10  433.00     890
 INDIA SOYOIL     AUG5  576.20    -1.75  575.50  578.70   26320
 NYMEX CRUDE      SEP5   50.28    -0.58   50.04   50.71   25162
                                                                
 Palm oil prices in Malaysian ringgit per tonne
 CBOT soy oil in U.S. cents per pound
 Dalian soy oil and RBD palm olein in Chinese yuan per tonne
 India soy oil in Indian rupee per 10 kg
 Crude in U.S. dollars per barrel
   
($1 = 3.7905 ringgit)
($1 = 6.2093 Chinese yuan renminbi)
($1 = 63.6000 Indian rupees)