(Recasts, updates prices, adds fresh quote)

* Prices fall to 2,349 rgt in early trade, lowest since October 2013
* Malaysia's July 1-10 palm oil exports up 14.1-18.7 pct m/m - cargo surveyors
* Palm oil to fall to 2,340 ringgit -technicals
* Malaysia's end-June palm stocks fall to 1-year low of 1.66

10/07/2014 (Reuters) - Malaysian palm oil futures ended higher on Thursday, bouncing off a nine-month low hit in early trades, after an industry report showed that stocks in the No.2 producer sank to a one-year low, signalling tighter supplies ahead.

The Malaysian Palm Oil Board reported that palm stocks fell a bigger-than-expected 10 percent to 1.66 million tonnes at end-June, their lowest since June 2013, as dry weather curbedyields of the tropical oil.

The drop in stocks, which was the first in four months, missed market estimates that had forecastinventories to fall to 1.80 million tonnes.

"The end-stocks are very tight and the fundamentals for palm are very strong. Production is dipping -- I don't see any improvement for July," said a trader with a local commodities brokerage in Malaysia, who expects July end-stocks to fall below1.65 million tonnes.

"It's about time the market recovers. With the current fundamentals, we should see better prices going forward."

The benchmark September contract on the Bursa Malaysia Derivatives Exchange edged up 0.6 percent to settle at 2,387 ringgit ($751) per tonne, recovering from a low of 2,349ringgit -- a level last touched on Oct. 8.

Total traded volume stood at 53,867 lots of 25 tonnes, abovethe usual 35,000 lots.

Technicals showed Malaysian palm is expected to fall to 2,340 ringgit per tonne, as it has broken below a support at 2,358 ringgit, said Reuters market analyst Wang Tao.

An uptick in export demand provided some support to pricesthat have fallen 10 percent so far this year.

Data from cargo surveyor Intertek Testing Services showed that exports of Malaysian palm oil products for July 1-10 rose 14.1 percent from the same period a month ago, thanks to stronger demand from the world's top edible oil consumers China and India.

Another cargo surveyor showed exports for the same period rose 18.7 percent.

Palm oil, used as cooking oil and to make a range of  foodstuffs from instant noodles to margarines, as well as an additive in biodiesel, typically tracks soyoil which is a common food and fuel substitute.

The U.S. soyoil contract rose 0.6 percent in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange shed 0.2 percent.

In other markets, oil fell to around $108 a barrel on Thursday, extending its longest losing streak in four years, pressured by weak gasoline demand in the United States and the prospect of rising supply from Libya.

Palm, soy and crude oil prices at 1009 GMT

Contract Month Last Change Low High Volume

MY PALM OIL JUL4 2452 +12.00 2447 2455 51
MY PALM OIL AUG4 2419 +23.00 2380 2424 967
MY PALM OIL SEP4 2387 +14.00 2349 2396 19633
CHINA PALM OLEIN JAN5 5858 +74.00 5732 5994 1112206
CHINA SOYOIL JAN5 6588 -14.00 6512 6644 768214
CBOT SOY OIL DEC4 37.53 +0.23 37.24 37.75 9351
NYMEX CRUDE AUG4 101.78 -0.51 101.61 102.09 21702

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 = 3.179 Malaysian ringgit)
($1 = 6.2028 Chinese yuan)