* Ringgit weakness boosts palm prices

* IOI forecasts 5-7.5 pct dip in Malaysian palm output

* Trading quiet amid industry conference in Malaysian capital

13/10/2016 (Reuters) - Malaysian palm oil futures rose to their highest in nearly two weeks on Wednesday, buoyed by a weaker ringgit and expectations of a drop in production.

Benchmark palm oil futures for December on the Bursa Malaysia Derivatives Exchange had gained 0.3 percent to 2,618 ringgit ($630.08) a tonne at the midday break. Earlier in the session, it had risen to 2,623 ringgit - the highest since September 30.

A weaker ringgit, palm's traded currency, usually makes the tropical oil cheaper for foreign currency holders. It fell 0.4 percent against the dollar on Wednesday.

"Overall market is up due to the weakness in the ringgit," said a trader in Kuala Lumpur, adding that trading is expected to be quiet due to a palm oil conference in the Malaysian capital.

Traded volumes stood at 15,821 lots of 25 tonnes each at the midday break, compared with Tuesday's 26,273 lots at midday break.

The market is awaiting price forecasts and direction from leading industry analysts at the conference on Thursday, the trader said.

Palm oil analysts Thomas Mielke, James Fry and Dorab Mistry are scheduled to speak at the Palm Oil Trade Fair and Seminar on Thursday.

Prices were also supported by forecasts of lower output, traders said.

Palm oil output from Malaysia, the world's second largest palm producer, is expected to drop by 5 to 7.5 percent in 2016 from the previous year due to the lingering effects of a crop damaging El Nino weather event, the chief executive of planter

IOI Group said at the conference on Wednesday.

Lee Yeow Chor also said output in top producer Indonesia has gone down "substantially" in the first half of the year, and that output for the full year will be below last year's levels.

An El Nino weather pattern typically brings scorching heat across Southeast Asia, and its knock-on effects from last year has lowered palm output this year in top growers Indonesia and Malaysia.

While the lower output expectations were helping prices, the gains would be limited by soft seasonal demand, another trader said.

"Production will definitely be lower, although the fall will not be drastic. Buying is subdued at the moment and demand is expected to be quite slow around the months of November through

February as there are not any festivities and winter is generally not good for our exports," the trader said.

Palm, soy and crude oil prices at 0552 GMT

Contract Month Last Change Low High Volume

MY PALM OIL OCT6 2640 -10.00 2640 2640 20

MY PALM OIL NOV6 2624 +1.00 2611 2631 503

MY PALM OIL DEC6 2618 +7.00 2605 2623 7660

CHINA PALM OLEIN JAN7 5524 +16.00 5476 5558 619700

CHINA SOYOIL JAN7 6414 +12.00 6362 6456 490808

CBOT SOY OIL DEC6 33.57 +0.00 33.42 33.7 2973

INDIA PALM OIL OCT6 0.00 +0.00 0.00 0 0

INDIA SOYOIL OCT6 0 +0.00 0 0 0

NYMEX CRUDE NOV6 51.00 +0.21 50.69 51.03 13148

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 = 4.1550 ringgit)