* Palm recovers from 5-week low on positive ECB comment * Coming up: Malaysia's July palm oil export data on Tuesday * Wilmar's shares tumble on China price pressure (Updates prices) By Chew Yee Kiat SINGAPORE, July 27 (Reuters) - Malaysian crude palm oil bounced up 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 helped risk assets. The broader financial markets rose after ECB President Mario Draghi said the bank would do whatever was necessary to protect the euro zone from collapse, raising expectations it will move quickly to tackle sky rocketing borrowing costs in countries such as Spain. Benchmark October palm oil futures on the Bursa Malaysia Derivatives Exchange closed 1.6 percent higher at 2,927 ringgit ($926) per tonne. Prices had touched 2,880 ringgit on Thursday, the lowest level since June 18. But palm oil still posted a 3.8 percent weekly loss, the worst performance since mid-June, as forecasts for rain in the U.S. Midwest relieved some fears of tightening global oilseed supplies. Favourable weather for soybeans 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." Traded volume stood at 32,356 lots of 25 tonnes each, higher than the usual 25,000 lots on short-covering activities ahead of the weekend. Market players are looking out for palm oil export data for July due next Tuesday for consumption trends after earlier numbers 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 record highs, 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 crude oil rose to around $106 per barrel on Friday, buoyed by the ECB's pledge to protect the euro zone and hopes for a fresh economic stimulus in the United States, raising palm oil's appeal to be used as a biofuel alternative. Other vegetable oil markets also recovered after losses suffered the previous day. By 1009 GMT, the most active U.S. soyoil contract for December delivery inched up 0.5 percent. The most active January 2013 soyoil contract on the Dalian Commodity Exchange closed 0.5 percent higher. Palm, soy and crude oil prices at 1010 GMT Contract Month Last Change Low High Volume MY PALM OIL AUG2 2906 +51.00 2881 2910 440 MY PALM OIL SEP2 2915 +46.00 2880 2920 1529 MY PALM OIL OCT2 2927 +45.00 2891 2930 18672 CHINA PALM OLEIN JAN3 7768 +88.00 7650 7774 206634 CHINA SOYOIL JAN3 9402 +46.00 9320 9408 302764 CBOT SOY OIL DEC2 52.65 +0.25 52.30 52.78 7943 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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