* Palm oil notches up 2nd straight weekly gain * Weather is a factor but not that immediate -traders * Some shortcovering seen ahead of a Muslim holiday on Monday * October palm oil stocks seen at 22-month high -Reuters survey (Adds details, comment) By Niluksi Koswanage KUALA LUMPUR, Nov 4 (Reuters) - Malaysian palm oil futures climbed to a near seven-week high on Friday ahead of a long weekend, fuelled by improving risk appetite after Greece said it would abandon a referendum on its debt bailout package. Concerns over the brewing La Nina weather pattern bringing more rains during the monsoon season also gave support to prices, although traders said the market would fully price in the development when there are signs of floods. Players were shortcovering ahead of industry data due next week, which includes Malaysia Palm Oil Board data on October production and stocks and the U.S. Department of Agriculture's supply estimates for grains and oilseeds. "The market is shortcovering, nobody wants to be caught out in case something happens on Monday, which is a holiday," said a trader with a foreign commodities brokerage. "I don't know how long the euphoria over Greece and the euro zone will last but it is certain that market players just want to capitalise on any tiny bit of good sentiment." Benchmark January palm oil futures FCPOc3 on the Bursa Malaysia Derivatives Exchange settled up 1.2 percent at 3,013 ringgit ($959) after rising as high as 3,020 ringgit -- a level unseen since Sept. 22. Traded volumes were a little light at 18,255 lots of 25 tonnes each, compared to the usual 25,000 lots. Reuters analyst Wang Tao said a rebound in Malaysian palm oil FCPOc3 from the Oct. 6 low of 2,754 ringgit per tonne has been extended, and the price may rise further to 3,060 ringgit. The ongoing monsoon season in Malaysia and Indonesia, the world's top two palm oil producers, could intensify in December and January as a La Nina weather pattern develops -- disrupting harvesting. "Weather is a factor but today I don't see the signs of rain impacting production. I just saw good rain and sunny periods which is good for production," said another trader in Kuala Lumpur. "If you ask me, I see it as a selling opportunity. If this was end-December, I might not say that, but we are in early November with more stock increases in view," the trader added. A Reuters poll found Malaysian palm oil stocks in October probably rose to a 22-month high as production remained higher in the face of strong export demand. Brent crude rose close to $111 per barrel on Friday, extending gains for a second day on expectations the United States added more jobs and Europe may be able to contain its debt crisis, renewing optimism of steady oil demand growth. Other related markets were mixed. U.S. soyoil for December delivery slipped in late Asian trade as investors were reluctant to push prices higher ahead of key U.S. employment data due for release later in the day. China's most active May 2012 soybean oil contract <0#DBY:> ended up 1.6 percent. Palm, soy and crude oil prices at 1006 GMT Contract Month Last Change Low High Volume MY PALM OIL NOV1 3023 +38.00 3000 3023 102 MY PALM OIL DEC1 3021 +45.00 2990 3021 873 MY PALM OIL JAN2 3013 +37.00 2988 3020 8706 CHINA PALM OLEIN MAY2 8052 +124.00 8010 8080 133710 CHINA SOYOIL MAY2 9280 +98.00 9248 9316 352060 CBOT SOY OIL DEC1 52.01 -0.02 51.75 52.04 3027 NYMEX CRUDE DEC1 94.69 +0.62 93.60 94.93 19527 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 Crude in U.S. dollars per barrel

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