* Prices rebound from two-week low hit on Tuesday * Markets looking out for production, export trend (Adds details, comments) By Niluksi Koswanage KUALA LUMPUR, Sept 7 (Reuters) - Malaysian palm oil futures bounced on Wednesday as traders bet on demand shifting to the tropical oil as U.S. soybean crop conditions deteriorate and tighten soyoil supplies. Traders said the market was oversold the previous day on concerns about the worsening euro zone debt crisis that could stall global economic growth. Palm oil has lost 20 percent so far this year on debt crisis and market volatility. "The pronounced declines yesterday was just a one day affair. Soyoil markets are pushing palm oil higher as its ample stocks are a contrast to tighter soyoil supply," said a trader with a foreign commodities brokerage. By midday, benchmark November palm oil FCPOc3 on the Bursa Malaysia Derivatives Exchange rose 1.2 percent to 3,020 ringgit ($1,013) per tonne. The previous day, the contract fell to 2,978 ringgit -- a level unseen since Aug. 26. Exchange volumes stood at 4,072 lots at 25 tonnes each versus the usual 12,500 lots with trading interest muted after last week's long holidays. Reuters technical analyst Wang Tao said palm oil is expected to hover around 3,000 ringgit per tonne for one trading session before falling to a bearish target at 2,887 ringgit. Palm oil exports for August were above the 1.6 million tonne mark, which could cut into ample stocks as production faltered last month with estate workers taking leave for the Muslim Eid festival. September exports are expected to slip as importers like India and China wait for prices to come under pressure before committing to purchases, traders said. Brent crude rose above $113 a barrel for the second consecutive day on Wednesday on expectations of lower U.S. crude stockpiles after a storm disrupted production in the Gulf of Mexico. Vegetable oil markets gained after the U.S. Department of Agriculture's weekly crop progress report that showed just 56 percent of the soybean crop was rated good to excellent, down from 64 percent a year ago. U.S. soyoil for October delivery rose 0.6 percent in Asian trade. The most active May 2012 soy oil on China's Dalian Commodity Exchange gained 0.8 percent. Palm, soy and crude oil prices at 0548 GMT Contract Month Last Change Low High Volume M'ASIA PALM OIL SEP1 0 +0.00 0 0 0 M'ASIA PALM OIL OCT1 3072 +34.00 3050 3072 130 M'ASIA PALM OIL NOV1 3020 +35.00 2995 3023 2362 M'ASIA PALM OIL DEC1 3008 +33.00 2986 3011 613 DALIAN SOY OIL MAY2 10450 +92.00 10384 10452 399622 CBOT SOY OIL DEC1 58.45 +0.41 58.05 58.46 150 NYMEX CRUDE OCT1 86.49 +0.48 86.15 86.58 4657 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 = 2.980 Ringgit) (Editing by Himani Sarkar) ((niki.koswanage@thomsonreuters.com)(+603 2333 8035)(Reuters Messaging:)(niki.koswanage.thomsonreuters.com@thomsonreuters.net )

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