* Optimism returns after EU leaders agree to create supervisory body * Palm oil posts 12 pct quarterly loss, worst since Q1 2011 * Dry weather worries in U.S. Midwest support * Coming Up: USDA's June stocks/acreage report; 1230 GMT (Updates prices) By Chew Yee Kiat SINGAPORE, June 29 (Reuters) - Malaysian crude palm oil futures ended higher on Friday after European leaders agreed on measures to tackle the region's debt crisis, easing concern over global economic growth and commodity demand. But palm oil still posted a 12 percent quarterly loss, the worst since the first quarter of 2011. For the week, prices rose 2.3 percent on dry weather concerns in the United States. "On the fundamentals side, the tight supply situation is supporting the prices as currently the U.S. is facing a weather risk for corn and soy," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore. "On the macroeconomic front, we see a breakthrough from the summit in Europe. Over the weekend, we are going to see the PMI data coming from China and this will certainly be another benchmark on how the economy is doing." The purchasing managers' index (PMI) is an important indicator of the state of China's economy. Benchmark September palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.7 percent to close at 3,020 ringgit ($952) per tonne. Traded volumes stood at 26,707 lots of 25 tonnes each, slightly higher than the usual 25,000 lots. Optimism returned to the market after European leaders agreed to create a single supervisory body for euro zone banks and to allow them to be recapitalised directly by the currency area's rescue fund without adding to government debt. Palm oil demand remains healthy with Malaysian exports showing a steady improvement for the first 25 days of June compared to a month ago. Traders expect exports for the full month to go higher on restocking ahead of the Muslim fasting month that starts at the end of July. Investors are also awaiting a report by the U.S. Department of Agriculture (USDA) on Friday to gauge stocks and production trends of soybeans. Lower stocks for crushing into soybean oil will add support to palm oil, which is already trading at a steep discount. Oil rallied with other commodities and the euro on Friday after European leaders agreed on a strategy to tackle soaring borrowing costs in Italy and Spain, but was still set for the deepest quarterly loss since 2008. In other vegetable oil markets, U.S. soyoil for July delivery edged up 1.1 percent in late Asian trade. The most active January 2013 soyoil contract on Dalian commodity exchange ended 0.7 percent higher. Palm, soy and crude oil prices at 1004 GMT Contract Month Last Change Low High Volume MY PALM OIL JUL2 2983 +0.00 2983 3009 233 MY PALM OIL AUG2 3000 +9.00 2985 3022 1868 MY PALM OIL SEP2 3020 +22.00 2991 3030 16425 CHINA PALM OLEIN JAN3 8066 +92.00 7920 8070 330336 CHINA SOYOIL JAN3 9548 +64.00 9444 9550 463754 CBOT SOY OIL DEC2 52.20 +0.47 51.61 52.41 6311 NYMEX CRUDE AUG2 79.80 +2.11 78.28 79.95 36302 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=3.173 Malaysian ringgit)

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