04/07/2012 (Reuters) - Malaysian crude palm oil futures touched the highest in five weeks on Tuesday, as a U.S. crop report cutting soybean crop condition ratings cemented market views of a tighter global oilseed supply.

Extreme hot and dry weather has taken a toll on the U.S. soybean crops with the U.S. Department of Agriculture (USDA) on Monday slashing its condition rating at 45 percent good-to-excellent, compared with 53 percent a week ago.

"The weather issue is still in play and we have a positive sentiment on demand as Ramadan is coming closer," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore, referring to the Muslim fasting month that begins in end-July.

"Traders are also positioning ahead of the MPOB (Malaysian Palm Oil Board) data next week on stocks and output."

Benchmark September palm oil futures on the Bursa Malaysia Derivatives Exchange gained 1.2 percent to close at 3,124 ringgit ($992) per tonne. Prices earlier went as high as 3,130 ringgit, a level not seen since May 30.

Traded volumes stood at 34,976 lots of 25 tonnes each, much higher than the usual 25,000 lots.

On the technicals front, a bullish target at 3,155 ringgit remaisns intact, said Reuters market analyst Wang Tao, based on a wave analysis.

The USDA said in a report on Friday that U.S. farmers planted far more soybeans than they originally planned but it failed to ease concerns over a Midwest drought that has damaged soybean crop.

A lower soybean crop for crushing into soybean oil could mean more demand shifting to competing palm oil, which is already trading at a discount.

Malaysia's palm oil demand climbed in June compared to a month ago according to cargo surveyor data, as festival demand ahead of Ramadan spurred last-minute buying.  

Higher exports could pile further pressure on Malaysia's  stocks level, which is already at a 13-month low in May.

Oil rose to $99 a barrel on Tuesday as investors bet on further policy action to support global economic growth and tension over Iran and a strike in Norway kept oil supply concerns in focus.   

Dry weather concerns that squeezed global oilseed supply also lifted other vegetable oil markets. U.S. soyoil for July delivery edged up 0.7 percent.

The most active January 2013 soyoil contract on Dalian commodity exchange also closed 0.6 percent higher.  

  Palm, soy and crude oil prices at 1004 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      JUL2       0    +0.00       0       0       0
  MY PALM OIL      AUG2    3114   +44.00    3075    3117    1323
  MY PALM OIL      SEP2    3124   +36.00    3084    3130   20967
  CHINA PALM OLEIN JAN3    8176   +48.00    8102    8182  219858
  CHINA SOYOIL     JAN3    9710   +56.00    9634    9712  525070
  CBOT SOY OIL     DEC2   53.52    +0.48   53.11   53.56    5572
  NYMEX CRUDE      AUG2   85.14    +1.39   83.33   85.46   35034

  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=3.15 Malaysian ringgit)