16/01/2014 (Reuters) - Malaysian palm oil futures rose on Wednesday but failed to pull far above their weakest level in more than two months as falling exports kept fears alive of a build-up in inventory in the world's second-largest producer.

Exports of palm oil products from Jan. 1 to 15 fell 28.1 percent to 460,248 tonnes from 640,240 tonnes shipped during Dec. 1 to 15, cargo surveyor Intertek Testing Services said.

Another surveyor, SGS, reported later that exports of Malaysian palm oil products for Jan. 1-15 fell 27.4 percent to 467,817 tonnes from 644,556 tonnes shipped during Dec. 1-15.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange closed up 1.3 percent 2,525 ringgit a tonne ($770), not far off its day's high. Volume was 18,161 lots.

However, the contract, which sets the tone for global prices, was also not far from Tuesday's low of 2,486 ringgit, the deepest trough since Oct. 29.

"The market is a bit depressed, although it may also be a bit oversold," said a dealer with a foreign commodities brokerage in Kuala Lumpur.

"I would say support for the third-month contract is still at 2,480 ringgit, while resistance is at 2,550 ringgit."

On the technical front, Reuters market analyst Wang Tao said palm oil looks exhausted and may bottom very soon.

"Palm oil had experienced rising stockpiles despite a sharp fall in production in December," said Phillip Futures in a report.

Malaysia's palm oil inventories rose to a nine-month high in December, industry data showed, missing expectations for a drop as lacklustre demand offset a fall in output caused by floods.

Palm, soy and crude oil prices at 1027 GMT.
($1=3.28 ringgit)