KUALA LUMPUR, July 5 (Reuters) - Malaysian palm oil futures broke above900 ringgit, a level last seen on March 30, in anticipation of morepurchases from India and talk about an increased Chinese import quotas,traders said on Thursday."There is a strong rumour China has released the quota for the second halfof the year totalling 800,000 tonnes," said one trader in Kuala Lumpur."I've contacted my office in Beijing, but there is no officialconfirmation yet," he added.By midday, the benchmark third-month September contract had settled up 13ringgit at 897 ringgit ($236.05) a tonne, after trading as high as 904ringgit. Volume was at 1,378 lots.Industry sources in China say the country issued 600,000 tonnes of palmoil import quotas in January for the first half of this year and foranother 100,000 tonnes in May.The quota for the second half of the year could reach 800,000 tonnes, upfrom an earlier estimate of 700,000 tonnes.Some traders said anticipation of more purchases by India, the world'slargest edible oil importer, ahead of the festive season had been the mainfactor behind rises in the Malaysian market in the past few days.But some believed the gains would be shortlived."There's nothing new about the increase in demand because we all know thefestive season is always there. That's why I believe gains in our marketis artificial," said one trader in Kuala Lumpur.Traders in India said edible oil demand is expected to firm in the comingmonths with the beginning of the high-consumption festive season, despitea surge in global prices.Demand in India is normally high during the festive season which starts inAugust and peaks in October and November during Diwali, the Hindu festivalof lights.Physical July crude palm oil for the southern and central regions wasquoted at 890 ringgit a tonne against bids of 885 ringgit. Deal was doneat 885 for south and at 885 to 890 for central.August crude palm oil for the southern and central regions saw offers at900 ringgit against bids of 895. There were deals at 900 ringgit for bothregions.Among refined products, July RBD palm oil was offered at $257.50 a tonneand August at $260.There were offers for July RBD olein at $275 and August at $277.50.July RBD palm stearin was offered at $192.50 and July palm fatty aciddistillate was offered at $157.50.