* Benchmark prices post 1st gain in five days

* Palm oil still targets 2,118 ringgit -technicals

By Fergus Jensen

JAKARTA, May 21 (Reuters) - Malaysian palm oil futures ended

higher on Thursday, recovering from the morning session and

snapping four straight days of losses as weak prices attracted

buying interest for the tropical oil.

Weak overseas oil and soy markets had dragged the benchmark

contract down, which led to prices hitting their lowest in

nearly three weeks on Wednesday, although robust export demand

helped put a floor under prices.

"At this level demand is returning," said a trader with a

local commodities brokerage in Malaysia. "Fresh buyers are

entering the market after the recent sell off."

By Thursday's close, the benchmark August contract

on the Bursa Malaysia Derivatives exchange had edged up 0.8

percent to 2,158 ringgit ($599.28) a tonne.

Total traded volume stood at 42,418 lots of 25 tonnes each,

above the average 35,000 lots.

The start of the holy month of Ramadan next month, marked by

communal fasting and feasting by Muslims, typically drives up

consumption of edible oils and may underpin demand for palm in

May and June.

"With production tapering circa 5 to 8 percent, demand

leap-frogging 50 percent and the weaker ringgit...we anticipate

prices to recover again," the Malaysian-based trader added.

Export data released by cargo surveyors on Wednesday showed

an up to 53 percent surge in shipments of Malaysian palm oil

between May 1-20, from the same period a month ago.

A turnaround in competing crude and soyoil markets also

provided support.

Oil rose towards $66 a barrel on Thursday, gaining for a

second day, supported by expectations that a global supply glut

is starting to ease and by fighting in Iraq.

The U.S. July soyoil contract was up 0.8 percent in

late Asian trade, while the most active September soybean oil

contract on the Dalian Commodity Exchange gained 0.4

percent.

Palm, soy and crude oil prices at 1022 GMT

Contract Month Last Change Low High Volume

MY PALM OIL JUN5 2155 +5.00 2137 2157 866

MY PALM OIL JUL5 2162 +13.00 2139 2168 7186

MY PALM OIL AUG5 2158 +16.00 2134 2165 21908

CHINA PALM OLEIN SEP5 4918 +0.00 4894 4952 517618

CHINA SOYOIL SEP5 5704 +24.00 5668 5724 539460

CBOT SOY OIL JUL5 32.45 +1.10 32.11 32.54 6504

INDIA PALM OIL MAY5 449.90 +1.10 448.20 450.50 539

INDIA SOYOIL JUN5 598.65 +2.10 595.70 599.50 20725

NYMEX CRUDE JUL5 59.74 +0.76 58.69 59.78 31248

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 = 3.6010 Malaysian ringgit)

($1 = 6.1968 Chinese yuan)

($1 = 63.67 Indian rupees)