* Malaysia's March 1-25 palm oil exports rise 3.5-3.7 pct-cargo surveyors

* Malaysian 2014/15 palm output forecast cut - USDA attache

  Malaysian palm oil futures rose on Wednesday as export volumes from the No.2

producer recorded an improvement for the first time in three

months, but persistent worries about the outlook for global

demand kept a lid on gains.

Data from Intertek Testing Services (ITS) showed Malaysian

palm oil shipments between March 1 and 25 rose 3.5 percent to

856,474 tonnes, versus the same period in February, on higher

Indian purchases. The last time the data recorded a rise was in late December.

Another cargo surveyor, Societe Generale de Surveillance,

showed exports for the same period rose 3.7 percent.

But weak prices of crude oil and rival soyoil, which makes

palm oil unattractive, together with signs of slowing growth in

key consumer China reigned in prices of the tropical oil.

"With uncertainty in demand and external markets, we are

seeing some initial buying," said Lingam Supramaniam, director

at Malaysia-based commodities firm Pelindung Bestari.

"The stronger ringgit, weaker manufacturing reading China,

bearish soybean market and big increase in March production

could spell trouble for the palm market."

Factory activity in China, the world's No.2 economy, dropped

to an 11-month low in March, a survey showed.

Malaysia's monthly palm exports to China have shrunk 28

percent so far in March, the ITS report shows.

The benchmark June contract on the Bursa Malaysia

Derivatives had edged up 0.6 percent to 2,168 ringgit ($592) a

tonne, with prices locked between 2,145 ringgit and 2,172

ringgit.

Total traded volume stood at 40,393 lots of 25 tonnes, above

the average 35,000 lots.

The U.S. soyoil May contract was nearly flat in late

Asian trade, while the most active September soybean oil

contract on the Dalian Commodity Exchange lost 0.7

percent.

In other markets, Brent crude oil steadied above $55 a

barrel, not far above the week's lows, as more evidence emerged

of global oversupply that has filled fuel storage tanks around

the world.

Meanwhile, a U.S. Department of Agriculture attache report

showed the agency had cut its forecast for Malaysia's 2014/2015

palm production to 20 million tonnes from 20.5 million tonnes,

after unfriendly crop weather hindered yields.

"Damaging floods affecting the East Coast of Malaysia in

late 2014, and dry weather during the first quarter of 2014

caused palm oil production to drop 12 percent during the October

2014/February 2015 period," the USDA said.

Output for 2015/2016 was seen rising only marginally to 20.5

million tonnes.

Palm, soy and crude oil prices at 1009 GMT

Contract Month Last Change Low High Volume

MY PALM OIL APR5 2160 -5.00 2159 2175 229

MY PALM OIL MAY5 2173 +11.00 2153 2180 6572

MY PALM OIL JUN5 2168 +12.00 2145 2172 20931

CHINA PALM OLEIN SEP5 4716 -30.00 4714 4752 450566

CHINA SOYOIL SEP5 5444 -40.00 5440 5494 456022

CBOT SOY OIL MAY5 31.09 -2.00 30.98 31.12 4052

INDIA PALM OIL MAR5 437.00 -2.00 435.90 439.00 104

INDIA SOYOIL APR5 586.00 +0.05 583.40 586.90 9600

NYMEX CRUDE MAY5 47.58 +0.07 47.00 47.75 27362

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 = 3.6645 Malaysian ringgit)

($1 = 6.2125 Chinese yuan)

($1 = 62.39 Indian rupee)