* Palm rises to one-week high on Monday
* Palm could hover below 2,402 rgt/t - Technicals (Updates latest prices)

04/07/2016 (Reuters) - Malaysian palm oil futuresrose to a one-week high on Monday, lifted byweaker-than-expected output and short-covering before publicholidays.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange gained 1.8 percent at2,391 ringgit ($599) per tonne at the close of trade. It earlierreached an intraday high of 2,402 ringgit, its strongest levelin a week.

Traded volumes stood at 30,596 lots of 25 tonnes each onMonday evening, below the 2015 average of 44,600.

"It could be short-covering ahead of the long holidays, andproduction is not coming in as expected," said one trader fromKuala Lumpur. Malaysian markets will be closed on Wednesday andThursday for Eid celebration.

Palm is expected to continue its downward trend after losing10.2 percent in June, as production is likely to rise seasonallyand exports slow down with Ramadan drawing to a close.

The Muslim holy festival entails a month of fasting followedby communal feasting, boosting demand for palm oil for cooking.Buyers caused a surge in exports while stocking up on suppliesahead of Ramadan in May, leading to expectations of decliningshipments in June and July.

Palm oil failed to break a resistance at 2,402 ringgit pertonne and may either hover below this level or retrace to asupport at 2,370 ringgit before rising again, according toanalysis by Wang Tao, a Reuters market analyst for commoditiesand energy technicals.

The Chicago Board of Trade soyoil contract for December was closed on Monday for the U.S. Independence Dayholiday, while the September soybean oil contract on the DalianCommodity Exchange rose 2.7 percent.

The July offer price for crude palm kernel oil stood at5,076.12 ringgit per tonne (PKO-MYSTH-M1) in the evening,according to price assessments by Thomson Reuters.

($1 = 3.9940 ringgit)
($1 = 67.2725 Indian rupees)
($1 = 6.6630 Chinese yuan)