16/12/2011 (Reuters) - Malaysian crude palm oil futures rose by as much as 1.4 percent on Friday, rebounding from the previous day's six-week low and tracking gains in other markets, but traders expected the euro zone worries to dampen sentiment.

World stocks rose after upbeat U.S. data and corporate results, while concerns over the European banking sector and nervousness about potential ratings downgrades in European sovereign debt underpinned German government bonds.

The benchmark March palm oil futures on the Bursa Malaysia Derivatives Exchange closed 0.4 percent higher to 2,985 Malaysian ringgit ($940). Prices had earlier risen as high as 3,015 ringgit.

"Weekend covering," said a Kuala Lumpur-based palm trader said about Friday's gains. "Also, positive regional equity markets and short-term technicals showing signs of recovery."

On Thursday, prices touched a six-week low of 2,971 ringgit and are down about 3 percent for the week.

Traded volumes for the February palm contract were at 11,658 lots of 25 tonnes each, compared with a three-week high at 16,016 on Thursday.

Investors said the monsoon season in top Southeast Asian countries was also offering some support, with expectations of declining output.

Among comparable oils, Chicago soybeans rose around half a percent on Friday, gaining for a second straight day on concerns over dry weather in South America, which is likely to boost demand for U.S. beans.

China's most active Sept 2012 soybean oil contract was also positive.

Oil prices were up near $104, consolidating after a heavy sell off earlier in the week, supported by a weaker dollar and concern over U.S. sanctions against Iran, but the eurozone debt crisis continued to weigh.

 Palm, soy and crude oil prices at 1035 GMT
                                                                                       
  Contract                   Month    Last   Change     Low      High    Volume
  M'ASIA PALM OIL     JAN2    2987   +15.00      2980    3009          208
  M'ASIA PALM OIL    FEB2    2985   +14.00      2978    3016         4276
  M'ASIA PALM OIL    MAR2    2984   +13.00     2977    3015        11658
  M'ASIA PALM OIL    APR2    2984   +14.00      2977    3012           734
  DALIAN SOY OIL    SEP2    8790  +102.00    8732     8798    252956
  CBOT SOY OIL        JAN2   49.07    +0.09      48.92    49.37        4763
  NYMEX CRUDE      JAN2   93.99    +0.12      93.39    94.39      15562

  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil in Chinese yuan per tonne
  Crude in U.S. dollars per barrel
      
($1 = 3.1865 Malaysian ringgits)