VEGOILS-Palm jumps over 1 pct on weaker ringgit, palm-gasoil spread

* Palm reaches over two-week high of 2,344 rgt/T

* U.S. proposal for higher biofuels mandate gives support

(Updates with closing prices, quotes)

By Emily Chow

KUALA LUMPUR, June 28 (Reuters) - Malaysian palm oil futures

rose more than 1 percent to its highest in over two weeks on

Thursday, gaining on the back of a weaker ringgit and a

favourable palm oil-to-gasoil spread.

A weaker ringgit, palm's currency of trade, usually makes

palm oil cheaper for foreign buyers.

The currency recorded a fourth straight day of losses on

Thursday, falling to its lowest against the U.S. dollar since

Jan. 2. It was last down 0.3 percent at 4.0400 per dollar.

The benchmark palm oil contract for September delivery

on the Bursa Malaysia Derivatives Exchange was up 1.2

percent at 2,343 ringgit ($579.95) a tonne at the close of

trade, charting a second day of gains.

The contract touched a high of 2,344 ringgit, its strongest

since June 12.

Trading volumes stood at 42,839 lots of 25 tonnes each on

Thursday evening. (1FCPO-TOT)

A Singapore-based futures trader said the market was

supported by a weakening ringgit and a competitive spread

between palm oil and gasoil.

Gains in oil prices have made production of biodiesel, in

which crude palm oil is used as feedstock, more economical.

Gasoil's price spread over palm recently widened to its highest

in nearly four years, and was last around $89 on Thursday.

Earlier in the day, the trader said news of a proposal by

the U.S. Environmental Protection Agency to set a higher

biofuels blending mandate lent some support to palm prices.

In other related oils, the Chicago July soybean oil contract

slipped 0.1 percent, while September soybean oil on

China's Dalian Commodity Exchange was trading flat at

around 1145 GMT.

Palm oil prices track the performance of other edible oils,

as they compete for a share in the global vegetable oils market.

Palm, soy and crude oil prices at 1145 GMT

Contract Month Last Change Low High Volume

MY PALM OIL JUL8 2325 +21.00 2293 2325 68

MY PALM OIL AUG8 2342 +29.00 2305 2345 5444

MY PALM OIL SEP8 2340 +28.00 2305 2344 16802

CHINA PALM OLEIN SEP8 0 +0.00 0 0 0

CHINA SOYOIL SEP8 0 +0.00 0 0 0

CBOT SOY OIL DEC8 29.66 -0.03 29.52 29.68 5578

INDIA PALM OIL JUN8 644.10 +0.20 643.20 645 740

INDIA SOYOIL JUL8 752.3 -1.85 751.4 755 11290

NYMEX CRUDE AUG8 72.66 -0.10 72.25 72.97 138787

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 = 4.0400 ringgit)

($1 = 68.7550 Indian rupees)

($1 = 6.6205 Chinese yuan)

(Reporting by Emily Chow

Editing by Richard Pullin and Edmund Blair)