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VEGOILS-Palm rebounds from one-week low on slowing production outlook

* Palm earlier fell to low of 1,979 rgt/T

* Market also up on short-covering - Trader

(Updates with closing prices, quote)

By Emily Chow

KUALA LUMPUR, Dec 6 (Reuters) - Malaysian palm oil futures

recovered from a one-week low hit earlier on Thursday as traders

forecast slowing output amid some short-covering.

The benchmark palm oil contract for February delivery

on the Bursa Malaysia Derivatives Exchange rose 0.5

percent at 2,005 ringgit ($481.74) a tonne at the close.

It earlier dropped to 1,979 ringgit, its lowest since Nov.

28, tracking weakness in other related edible oils and crude.

Trading volumes stood at 49,351 lots of 25 tonnes each at

the end of the trading day. (1FCPO-TOT)

"The market is supported by the production factor," said a

Singapore based trader, explaining that output is expected to

ease in December from the previous month.

Official data for November is scheduled for release on Dec.

10 from the Malaysian Palm Oil Board.

Another trader added that the market was also up on some

short covering.


A Reuters poll on Wednesday showed that Malaysia's palm oil

stocks at end-November are likely to touch the 3-million-tonne

mark, their highest in recent years, as the drop in exports

outpaced lean production.

November production is seen falling 2.1 percent to 1.92

million tonnes, while exports are forecast to drop 10.6 percent

to 1.41 million tonnes.

In other related oils, the Chicago December soybean oil

contract was down 0.3 percent, while the January soybean

oil contract on the Dalian Commodity Exchange fell 0.4

percent.

Palm oil is impacted by movements of other edible oils, as

they compete for a share in the global vegetable oil market.

Palm, soy and crude oil prices at 1114 GMT:

Contract Month Last Change Low High Volume

MY PALM OIL DEC8 1798 +12.00 1798 1798 2

MY PALM OIL JAN9 1915 +12.00 1883 1920 3457

MY PALM OIL FEB9 2004 +10.00 1979 2014 23992

CHINA PALM OLEIN JAN9 4220 +0.00 4192 4242 107146

CHINA SOYOIL JAN9 5366 -22.00 5332 5394 162658

CBOT SOY OIL DEC8 28.49 -0.08 28.49 28.49 212

INDIA PALM OIL DEC8 491.10 -2.20 490.60 496.2 1118

INDIA SOYOIL DEC8 736.7 -2.95 736.35 739.9 8310

NYMEX CRUDE JAN9 50.47 -2.42 50.23 53.30 292863

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

India soy oil in Indian rupee per 10 kg

Crude in U.S. dollars per barrel

($1 = 4.1620 ringgit)

($1 = 70.9550 Indian rupees)

($1 = 6.8774 Chinese yuan)

(Reporting by Emily Chow; Editing by Rashmi Aich and Alexander

Smith)