VEGOILS-Palm oil hits five-month high as supplies tighten

* Palm hits intraday and five month high of 2,725 rgt/T

* Tight supplies, stronger soy lifted the market - trader

* Palm seen rising to 2,761 rgt/T - technicals

(Updates latest prices)

By Emily Chow

KUALA LUMPUR, Sept 20 (Reuters) - Malaysian palm oil futures

surged to their highest in five months on Tuesday, recording a

third straight session of gains, in response to tight supplies

and strength in rival oils.

Benchmark palm oil futures for December on the

Bursa Malaysia Derivatives Exchange surged 1.9 percent to 2,693

ringgit ($651) a tonne at the end of the trading day.

It earlier touched an intra-day high of 2,725 ringgit, its

highest since April 22.

Traded volumes stood at 57,726 lots of 25 tonnes each,

higher than the 2015 average of 44,600.

The market is up on tight supplies, said a trader in East

Malaysia, adding that rising soyoil on the Chicago Board of

Trade and China's Dalian Commodity Exchange also lifted palm.

Palm oil output from Malaysia, the world's second-largest

producer, is still showing lagging effects of last year's dry

weather El Nino, resulting in lower than average crop yields.

Malaysian production in August rose 7.3 percent, but

registered its lowest August levels since 2012. (MYPOMP-CPOTT)

"Exports were also not too bad," the East Malaysian trader

added, referring to export data from cargo surveyors which fell

less than expected.

Palm oil shipments from Malaysia fell 11-12 percent during

the Sept. 1-20 period versus the same duration last month.

Traders were expecting a sharper dip after record exports in

August of 1.8 million tonnes, according to data from industry

regulator the Malaysian Palm Oil Board. (MYPOME-PO)

A narrowing spread between palm and rival oilseed soy has

shifted some demand to soy, dampening palm shipments in recent

weeks. Consumers tend to prefer soyoil for cooking to palm and

both compete for a share of the global edible oils market.

Chicago soybeans rose for a fourth straight session as

excessive rains in parts of the U.S. delayed harvesting and

raised concerns about crop quality.

The Chicago Board of Trade's soybean oil December contract

rose 1.6 percent, while the January soybean oil contract

on the Dalian Commodity Exchange also gained 3.1

percent.

Palm oil is expected to rise to 2,761 ringgit per tonne, as

it has cleared a resistance at 2,651 ringgit, according to

Reuters market analyst for commodities and energy technicals

Wang Tao.

Palm, soy and crude oil prices at 1039 GMT

Contract Month Last Change Low High Volume

MY PALM OIL OCT6 2883 +56.00 2870 2911 694

MY PALM OIL NOV6 2743 +55.00 2720 2781 14882

MY PALM OIL DEC6 2690 +51.00 2677 2725 23768

CHINA PALM JAN7 5676 +218.00 5528 5676 959748

OLEIN

CHINA SOYOIL JAN7 6380 +192.00 6224 6394 1062300

CBOT SOY OIL DEC6 33.6 +0.52 32.97 33.83 13145

INDIA PALM OIL SEP6 585.00 +4.30 583.50 591 1738

INDIA SOYOIL SEP6 652.15 +1.90 651.3 655 610

NYMEX CRUDE OCT6 43.01 -0.29 42.89 43.26 1571

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

India soy oil in Indian rupee per 10 kg

Crude in U.S. dollars per barrel

($1 = 4.1370 ringgit)

($1 = 67.0325 Indian rupees)

($1 = 6.6699 Chinese yuan)

(Reporting by Emily Chow; Editing by Christian Schmollinger and

Jane Merriman)