Updates closing prices and adds analyst quote

SINGAPORE, Aug 21 (Reuters) -Malaysian palm oil futures rose to a two-week high on Wednesday, buoyed by prospects of weakening supply in the world's largest producer Indonesia, although softer exports data capped gains.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange closed up 39 ringgit, or 1.05%, at 3,754 ringgit ($858.06) a metric ton.

The contract hit an intraday high of 3776 ringgit, its strongest level since Aug. 6.

"Indonesia production underperforming expectations is contributing to palm oil prices being uncompetitive versus soft oils, surprisingly at a time of the year when palm origin is typically going into peak production", said Pranav Bajoria, director of Singapore-based brokerage Comglobal Pte Ltd.

However, this may change with palm oil import destinations again replacing palm oil with alternatives, and if Indonesia sales pick up, Bajoria said.

Dalian's most-active soyoil contract DBYcv1 advanced 0.79%, while its palm oil contract DCPcv1 climbed 0.74%. Soyoil prices on the Chicago Board of Trade BOcv1 strengthened 0.82%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Malaysia has maintained its export tax for crude palm oil at 8% in September and raised its reference price.

Markets are expecting Indonesia's palm oil reference price to rise, which has provided some support to Malaysian palm oil, since current export duties and levies would be lifted one bracket higher, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Capping gains in palm oil are Malaysia's persistently weak palm oil export performance and a stronger ringgit, Bagani said.

Exports of Malaysian palm oil products for Aug. 1-20 fell between 16.7% to 18.4% from the previous month, data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia said on Tuesday.

The Malaysian ringgit MYR=, palm's currency of trade, inched up to an 18-month high on Wednesday.

A stronger ringgit makes palm oil less attractive for foreign currency holders.

($1 = 4.3750 ringgit)

Reporting by Gabrielle Ng; Editing by Savio D'Souza and Mrigank Dhaniwala

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01.
* To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.
* Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11.

Vegetable oils OILS/ASIA1
Malaysian palm oil exports SGSPALM1
CBOT soyoil futures 0#BO:
CBOT soybean futures 0#S:
Indian solvent SOLVENT01
Dalian Commodity Exchange DC/MENU
Dalian soyoil futures 0#DBY:
Dalian refined palm oil futures 0#DCP:
Zhengzhou rapeseed oil 0#COI:
European edible oil prices/trades OILS/E