06/06/2012 (Reuters) - Malaysian palm oil futures rebounded on Tuesday, tracking a recovery in overseas markets, as investors looked to policymakers for new action to tackle the euro zone's debt crisis.

Palm oil closed at its lowest level in 2012 the previous day, reflecting the bearish sentiment seen in a global sell-down of most commodities including, crude oil and soybean oil.

But investors took a more optimistic stance on Tuesday ahead of a conference call of the Group of Seven's finance chiefs that could produce some concrete measures to solve the crisis.

"The market is a bit stronger today, basically on short covering and retracement after the previous day's sharp fall," said a trader with a foreign commodities brokerage in Malaysia.

"The palm oil market is adjusting to external factors. It will still be volatile until the Greek election."

Benchmark August palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.4 percent to close at 2,966 ringgit ($927) per tonne. Prices touched a low of 2,925 ringgit on Monday, their lowest since Nov 2, 2011.

Traded volumes stood at 33,420 lots of 25 tonnes each, higher than the usual 25,000 lots.

Demand for the edible oil remained firm in May, with cargo surveyor Intertek Testing Services reporting a 2.4 percent increase in Malaysian palm oil product exports.

Another cargo surveyor, Societe Generale de Surveillance, reported an almost flat export number for the same period.

The bulk of the orders came from Pakistan and the Middle East, where Muslims are getting ready to observe a month of fasting starting in mid-July, with traders expecting exports to remain healthy for June.

But traders said market volatility could continue, despite solid fundamentals as most investors are now taking cues from global uncertainty and price movements in external markets.

Brent crude prices fell below $99 a barrel on Tuesday, reversing gains earlier in the session, as a darkening outlook on the euro zone debt crisis sparked concerns over oil demand growth.

In other vegetable oil markets, U.S. soyoil for July  delivery inched up 0.2 percent in late Asian trade while the most active Jan 2013 soyoil contract on the Dalian commodity exchange closed 0.5 percent higher.        

  Palm, soy and crude oil prices at 1005 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      JUN2    2960   +15.00    2960    2990     285
  MY PALM OIL      JUL2    2960    +8.00    2953    3004    1964
  MY PALM OIL      AUG2    2966   +13.00    2956    3008   19935
  CHINA PALM OLEIN JAN3    7704   +26.00    7684    7766  168828
  CHINA SOYOIL     JAN3    9052   +38.00    9008    9092  353236
  CBOT SOY OIL     JUL2   48.39    +0.08   48.25   48.74    8101
  NYMEX CRUDE      JUL2   83.77    -0.20   83.56   84.92   25354

  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
  Crude in U.S. dollars per barrel
  ($1=3.198 Malaysian ringgit)