* Malaysia palm stocks grow just 1.1 pct in Oct, lower than expected * Nov. 1-10 palm exports up 22 pct from a month ago -SGS * Palm oil to keep rebounding to 2,447 ringgit -technicals (Updates prices, adds details) By Chew Yee Kiat SINGAPORE, Nov 14 (Reuters) - Malaysian palm oil futures rose on Wednesday, supported by a slowdown in inventory build-up in the world's second largest producer and a demand recovery for the edible oil. Malaysia's October palm oil stocks inched up 1.1 percent to a record 2.51 million tonnes, but the rise fell short of market expectations of a 7.5 percent rise in stocks to 2.67 million tonnes. Cargo surveyor data pointed to a demand recovery as palm oil's steep $300 discount to soybean oil has encouraged some buyers to shift to the cheaper edible oil, with Nov. 1-10 exports rising as much as 22 percent from a month ago. "We expect the lower crude palm oil price and the substantial discount to soybean oil price would stimulate export demand in the months ahead," James Ratnam, an analyst with Malaysia's TA Securities, said in a research note. "But historically, it would take 3 to 6 months for low prices to incentivise stocks drawdown, and hence, we expect any inventory normalisation and therefore firmer prices will only materialise in the first quarter next year at the earliest." By the midday break, the benchmark January contract on the Bursa Malaysia Derivatives Exchange had edged up 1.5 percent to 2,359 ringgit ($771) per tonne. Prices fell to a 3-year low at 2,220 ringgit on Monday, but rebounded strongly after the release of the October stocks data. Total traded volumes were thin at 9,395 lots of 25 tonnes each ahead of the Islamic New Year holiday in Malaysia on Thursday. Palm oil is expected to keep rebounding to 2,447 ringgit per tonne, said Reuters market analyst Wang Tao based on a wave cycle analysis. In a bearish sign for palm oil, Brent crude slipped below $108 a barrel on Wednesday, declining for a third day, after the International Energy Agency further cut its demand outlook for the fourth quarter and 2013 amid a rebound in oil exports from sanctions-hit Iran. In other vegetable oil markets, U.S. soyoil for December delivery was up 0.9 percent in early Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange edged 0.1 percent lower. Palm, soy and crude oil prices at 0540 GMT Contract Month Last Change Low High Volume MY PALM OIL NOV2 2150 -78.00 2150 2270 4 MY PALM OIL DEC2 2312 +19.00 2296 2321 270 MY PALM OIL JAN3 2359 +35.00 2326 2363 5359 CHINA PALM OLEIN MAY3 6728 +76.00 6630 6744 468092 CHINA SOYOIL MAY3 8400 -10.00 8322 8440 688998 CBOT SOY OIL DEC2 47.46 +0.44 47.03 47.57 4397 NYMEX CRUDE DEC2 85.43 +0.05 85.14 85.47 9086 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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