* Crude at $100 a barrel raises palm oil's biofuel appeal * Traders eyeing heavy rains curbing production * Market also looking out for more decisive euro zone action * Reuters poll shows Malaysian stocks at 1.95 million tonnes in Nov (Updates prices, adds Reuters survey) By Niluksi Koswanage KUALA LUMPUR, Dec 7 (Reuters) - Malaysian palm oil futures rose on Wednesday as crude oil prices of well above $100 a barrel raised the appeal of the edible oil's use in biofuels at a time when heavy rains are disrupting some supply. Traders are also watching for more decisive action at the euro zone summit on Friday to resolve the region's debt crisis that has dragged palm oil prices down 18 percent so far this year. But many market participants are shifting their focus to better technicals in palm oil futures as well as output declining from November onwards due to monsoon rains and a seasonal decline in yields. "The market had come off a little in the past few days and it is holding up at 3,100 ringgit due to the strength in other commodities markets, especially crude oil," said a trader with a foreign commodities brokerage in Kuala Lumpur. "Also, some bargain hunting has come in. I hear the Chinese are locking in some last minute cargoes for delivery in the first quarter of 2012," the trader added. Benchmark February palm oil futures on the Bursa Malaysia Derivatives Exchange settled up 1.1 percent to 3,119 ringgit ($990) per tonne. Overall traded volumes stood at 15,411 lots of 25 tonnes each, much lower than the usual 25,000 lots as more investors turned cautious and waited on the sidelines. On Monday, prices hit a two-week high on reports of flooding in some areas of the world's second largest palm oil producer Malaysia. The Malaysian Meteorological Department said heavy rains in the key oil palm growing state of Sabah will persist till later in the day, causing flash floods. Sabah, on Borneo island, accounts for a quarter of national production. Heavy rains and floods can disrupt the supply chain but this gives much needed moisture to water loving oil palm. Excessive rains, however, can affect the oil yield quality and force palm oil firms to sell the edible oil at a discount. So far, however, planters have not reported major logistics disruptions. "It's just been a good mix of rains and sunshine in Sabah. That's actually very good for production. Some harvesting is disrupted but its not bad," said a planter in Sabah. A Reuters survey showed stocks likely fell for a second straight month in November with declines in production outpacing the drop in exports. Brent crude was steady above $110 on Wednesday, as investors turned cautious ahead of a European summit to deal with the region's debt crisis and the release of key Chinese economic data later this week. U.S. soyoil for January delivery barely moved in Asian trade, partly due to prospects of a big South American crop coming in next year and expectations the USDA will raise soy stocks forecast. China's most active May 2012 soybean oil contract <0#DBY:> closed up 0.4 percent. Palm, soy and crude oil prices at 1010 GMT Contract Month Last Change Low High Volume MY PALM OIL DEC1 3080 +28.00 3075 3080 58 MY PALM OIL JAN2 3112 +29.00 3095 3122 715 MY PALM OIL FEB2 3119 +34.00 3095 3126 10154 CHINA PALM OLEIN MAY2 8028 +62.00 7952 8030 83060 CHINA SOYOIL MAY2 8848 +38.00 8794 8860 126588 CBOT SOY OIL JAN2 50.36 +0.13 50.14 50.43 4518 NYMEX CRUDE JAN2 101.53 +0.25 101.09 101.94 11461 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 ($1 = 3.1360 ringgit) (Editing by Miral Fahmy)

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