28/03/2013 (Reuters) - Malaysian palm oil futures inched up on Wednesday on expectations that lower production may ease stocks further, but worries over the euro zone curbed appetite for risk.

Losses in palm oil early in the week may also have lured some buyers back into the market. The tropical oil has lost around 1.8 percent so far this week, weighed down by weaker export demand and uncertainty surrounding Cyprus's bailout deal.

"Yes, exports were lower (for the first 25 days), but we expect them to pick up for the full month. Stocks could dip to 2.35 million tonnes or lower," said a trader with a foreign commodities brokerage in Malaysia.

By the market close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had gained 0.4 percent to 2,447 ringgit ($789) per tonne. Prices traded in a tight range 2,430 to 2,467 ringgit.

Total traded volume stood at 34,133 lots of 25 tonnes each, higher than the usual 25,000 lots.

Technicals for the next quarter were bearish, as palm oil is expected to fall to 1,953 ringgit, indicated by its wave pattern and a Fibonacci ratio analysis, said Reuters market analyst Wang Tao.

But traders are still counting on a recovery in demand to support prices after a surprise drop in shipments for the first 25 days of March as major buyer India bought less of the crude grade. Cargo surveyors will release export data for the full month on Monday. 

Overseas investors also stayed on the sidelines ahead of a planting intentions report on soybeans by the U.S. Department of Agriculture on Thursday. 

In other markets, Brent crude held above $109 a barrel late on Wednesday in Asia as robust U.S. data which brightened the outlook for demand from the world's biggest oil consumer outweighed worries over the euro zone.

In other vegetable oil markets, U.S. soyoil for May delivery gained 0.2 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange closed 0.6 percent higher.   

  Palm, soy and crude oil prices at 1005 GMT

  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      APR3    2410    +5.00    2395    2415     207
  MY PALM OIL      MAY3    2431    +4.00    2423    2455    3947
  MY PALM OIL      JUN3    2447   +10.00    2430    2467   17296
  CHINA PALM OLEIN SEP3    6416   +50.00    6346    6418  421224
  CHINA SOYOIL     SEP3    8136   +46.00    8070    8140  488200
  CBOT SOY OIL     MAY3   50.94    +0.12   50.60   50.95    5011
  NYMEX CRUDE      MAY3   95.87    -0.47   95.84   96.27   12894

  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=3.1 ringgit)