* Closed U.S. markets limit trading interest * Traders eyeing weather developments in the United States * Weak U.S. soybean yields may spur demand for palm oil (Updates prices) By Niluksi Koswanage KUALA LUMPUR, Sept 5 (Reuters) - Malaysian palm oil futures fell 1.1 percent on Monday with few leads as U.S. markets were shut for a holiday although investors feared hot and dry weather might slash soy crop yields in the Midwest and spur demand for the Asian edible oil. Firm palm oil exports have given support to benchmark palm oil futures that have lost about a fifth so far this year on high stocks, concerns over global economic slowdown and volatile financial markets. "Palm oil traders are clearly watching for any developments in the U.S. Midwest as worse weather could prompt buyers to look at sourcing palm oil," said a trader with a foreign commodities brokerage. "We have ample palm oil stocks and in September there should be a slight recovery in production." The benchmark November crude palm oil contract FCPOc3 settled down 32 ringgit at 3,018 ringgit ($1,018.13)a tonne. Traded volumes were still thin at 11,999 lots of 25 tonnes each versus the usual 25,000 lots after markets opened from a long holiday last week and amid weak interest since U.S. markets were shut for a public holiday. Technicals were neutral with Reuters analyst Wang Tao saying the benchmark contract was hovering around a resistance of 3,056 ringgit per tonne. Palm oil exports for August dipped from a month ago although traders said this could cut into high stocks given lower production last month as estate workers took leave for the Eid holidays marking the end of the fasting month of Ramadan. "September will be interesting, we should see some slowdown in exports and production should be better with the workers back in the estates," said another Malaysian trader. Brent crude oil fell below $111 a barrel on Monday, as fears of another U.S. recession slowing fuel demand overshadowed concerns that a tropical storm may shut down some U.S. offshore oil production. Lower crude oil limited gains for vegetable oil markets. The most active May 2012 soy oil on China's Dalian Commodity Exchange fell 0.2 percent. Palm, soy and crude oil prices at 1107 GMT Contract Month Last Change Low High Volume M'ASIA PALM OIL SEP1 3144 -41.00 3144 3188 91 M'ASIA PALM OIL OCT1 3079 -30.00 3079 3130 1609 M'ASIA PALM OIL NOV1 3018 -32.00 3010 3076 6194 M'ASIA PALM OIL DEC1 3003 -40.00 2996 3114 2244 DALIAN SOY OIL MAY2 10426 -28.00 10390 10566 889252 CBOT SOY OIL DEC1 59.10 +0.00 58.15 58.84 3331 NYMEX CRUDE OCT1 84.78 -1.67 84.73 86.50 17023 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 = 2.964 Malaysian Ringgit) ((niki.koswanage@thomsonreuters.com)(+603 2333 8035)(Reuters Messaging:)(niki.koswanage.thomsonreuters.com@thomsonreuters.net )

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