20/03/2013 (Reuters) - Malaysian palm oil futures rebounded on Tuesday on bargain-hunting a day after a radical Cyprus bailout proposal had prompted declines, although gains were capped as uncertainty remained ahead of a vote on the plan.

Cyprus was set to reject a divisive tax on bank deposits in a vote on Tuesday, pushing the island closer to a debt default and banking collapse. The proposal announced over the weekend triggered declines in the global commodities and financial markets on Monday.   

Palm oil traders were also looking ahead to Malaysia's March 1-20 export data on Wednesday for better indication of export demand after nearly flat growth in shipments for the first half of the month. 

"Market players are hoping for higher exports to help ease stocks further," said a trader with a foreign commodities brokerage in Malaysia. The country's palm inventory level fell to 2.44 million tonnes in February from January's 2.58 million tonnes on seasonally slower production.   

By market close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had gained 1.3 percent to 2,417 ringgit ($777) per tonne. Prices traded in a range between 2,397 to 2,426 ringgit. 

Total traded volume stood at 31,142 lots of 25 tonnes each, higher than the usual 25,000 lots.

Technical analysis shows Malaysian palm oil looks neutral in a range of 2,383 to 2,460 ringgit per tonne, and an escape will point a future direction, said Reuters market analyst Wang Tao.

Palm oil futures also drew some support from stronger soybean and soybean oil prices, after the oilseed edged higher on supply concerns from South America.

Palm oil tracks soybean oil prices closely as they are typically used as substitutes for one another.   

In other markets, Brent crude fell below $109 a barrel on Tuesday as uncertainty over the Cyprus bailout plan revived concerns about the euro zone debt crisis, although a rosier economic outlook in the United States capped losses.  

In other vegetable oil markets, U.S. soyoil for May delivery gained 0.1 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange also gained 0.8 percent.

  Palm, soy and crude oil prices at 1005 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      APR3    2415   +29.00    2398    2425     898
  MY PALM OIL      MAY3    2418   +32.00    2397    2429    5978
  MY PALM OIL      JUN3    2417   +32.00    2397    2426   15105
  CHINA PALM OLEIN SEP3    6332   +38.00    6302    6350  352622
  CHINA SOYOIL     SEP3    8108   +60.00    8082    8130  530154
  CBOT SOY OIL     MAY3   49.75    +0.07   49.65   49.95    4272
  NYMEX CRUDE      APR3   93.69    -0.05   93.54   93.95    4897

  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=3.12 ringgit)