10/07/2012 (Reuters) - Malaysian crude palm oil futures rose on Monday on worries that unfavourable weather, from the United States to India, could crimp oilseed production and tighten global supply of cooking oil during a peak season for Asian demand.

A shortfall in India's monsoon rains is the latest weather concern to hit edible oil markets as summer-sown crops such as soybeans will be affected, forcing the world's largest importer of edible oil to buy more alternative palm oil.

Palm oil, which has lost 0.5 percent so far this year, is also now rising due to the drought in the United States, which is hurting soybean yields.

"Palm oil is taking a free ride. It will take more of the market from soybean oil, especially during the festival season on  the Asian side," said a trader with a foreign commodities brokerage.

Benchmark September palm oil futures on the Bursa Malaysia Derivatives Exchange ended the day up 0.7 percent or 23 ringgit at 3,153 ringgit ($990) per tonne.

Traded volumes stood at 18,615 lots of 25 tonnes each, lower  than the usual 25,000 lots.

Technicals, however appeared negative. Reuters analyst Wang Tao said the tropical oil would revisit a July 5 low of 3,095 ringgit, as it had completed a rebound from the June 14 low of 2,838 ringgit.

Traders are expecting on Tuesday a slew of Malaysian export data for the first ten days of July which could show strong festival demand for the edible oil.

The Asian festival season starts with the Muslim observance of Ramadan, which begins around July 20, where a month of fasting in the day is followed by feasts in the evening.

The market is also on the lookout for industry regulator Malaysian Palm Oil Board's June palm oil stocks that will show a 14-month low because of strong demand chasing modest production growth.

Some analysts are on the watch for a brewing El Nino weather condition, which brings drought to palm oil producing Southeast Asia. Malaysia-based OSK Investment Bank raised its 2013 average price assumption for palm oil to 3,500 ringgit from 3,100 ringgit to factor in the weather anomaly.

Brent crude oil climbed to around $99 a barrel on Monday as failed labour talks stoked worries of a full shutdown of Norwegian oil production, while hopes China would ease monetary policy also supported prices.

Other vegetable oil markets also focused on the weather in Asian trade. U.S. soyoil for July delivery rose 2.2 percent and the most active January 2013 soyoil contract  on the Dalian Commodity Exchange rose 1.1 percent.  

  Palm, soy and crude oil prices at 1013 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      JUL2    3125   +31.00    3125    3125      92
  MY PALM OIL      AUG2    3142   +32.00    3130    3152     490
  MY PALM OIL      SEP2    3153   +23.00    3145    3172   13830
  CHINA PALM OLEIN JAN3    8308   +48.00    8174    8344  436240
  CHINA SOYOIL     JAN3    9876   +76.00    9710    9910  896380
  CBOT SOY OIL     DEC2   55.20    +0.97   54.42   55.40   11108
  NYMEX CRUDE      AUG2   84.79    +0.34   84.00   85.05   27852

  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=3.1736 Malaysian ringgit)