* Palm recovers from 5-week low on positive ECB comment * Palm oil to fall to 2,838 ringgit -technicals * Wilmar's shares tumble on China price pressure * Coming up: Malaysia's July palm oil export data on Tuesday (Updates prices, adds details) By Chew Yee Kiat SINGAPORE, July 27 (Reuters) - Malaysian crude palm oil bounced on Friday from a five-week low hit the previous day after the European Central Bank pledged to protect the euro zone in comments that encouraged some risk taking in financial markets. The broader financial markets rose after ECB President Mario Draghi said on the bank would do whatever was necessary to protect the euro zone from collapse, raising expectations it will move quickly to tackle skyrocketing borrowing costs in countries like Spain. But palm oil is set to post a 4.5 percent weekly loss, the worst performance since May, as forecasts for rain in the U.S. Midwest relieved some fears of tightening global oilseed supplies. Favourable weather for soybean crop could lead to a higher supply of soybean oil and draw demand away from palm oil, "The selling was a bit overdone yesterday, so we see a little bit of recovering today," said a trader with a foreign commodities brokerage in Malaysia. "Optimism over Europe may not last for long as the sovereign debt issue remains unsolved." By the midday break, the benchmark October palm oil futures on the Bursa Malaysia Derivatives Exchange edged up 0.8 percent to 2,905 ringgit ($920) per tonne. Prices touched 2,880 ringgit on Thursday, the lowest level since June 18. Traded volume stood at 10,712 lots of 25 tonnes each, slightly lower than the usual 12,500 lots. Technicals remained bearish as palm oil will fall to 2,838 ringgit after breaking a support at 2,919 ringgit, Reuters market analyst Wang Tao said. Market players are looking out for palm oil export data for July due next Tuesday for consumption trends after earlier data showed signs of slowing demand. Malaysia's palm oil exports fell 14.3 percent and 18.6 percent over the July 1-25 period, according to cargo surveyors Intertek Testing Services and Societe Generale de Surveillance respectively. But slowing exports coupled with better production expected in Malaysia this month could boost palm oil stock levels and ease some pressure off tightening global oilseed supplies. A tighter supply outlook on persistent drought in the U.S. Midwest has pushed soybean oil prices to new high, fuelling worries of food inflation in top edible oil buyers India and China. Shares of the world's largest palm oil firm Wilmar International Ltd fell as much as 6.4 percent to their lowest in more than 3 years on Friday, on market talk that China had asked edible oil suppliers to keep prices stable, traders said. Brent remained over $105 per barrel on Friday, buoyed by a European Central Bank pledge to protect the euro zone and hopes for fresh stimulus in the United States, though it stayed on track for its biggest weekly drop in more than a month. Other vegetable oil markets also recovered after losses suffered the previous day. By 0540 GMT, the most active U.S. soyoil contract for December delivery inched up 0.2 percent and the most active January 2013 soyoil contract on the Dalian Commodity Exchange gained 0.1 percent. Palm, soy and crude oil prices at 0541 GMT Contract Month Last Change Low High Volume MY PALM OIL AUG2 2881 +26.00 2881 2895 164 MY PALM OIL SEP2 2895 +26.00 2880 2910 213 MY PALM OIL OCT2 2905 +23.00 2891 2922 6240 CHINA PALM OLEIN JAN3 7710 +30.00 7650 7720 116100 CHINA SOYOIL JAN3 9364 +8.00 9320 9380 184428 CBOT SOY OIL DEC2 52.50 +0.10 52.30 52.78 4307 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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