Updates midday prices and adds analyst quote

SINGAPORE, Aug 15 (Reuters) -Malaysian palm oil futures firmed for a second consecutive session on Thursday, buoyed by tighter inventories and bargain hunting after the contract touched a more than seven-month low in the previous session.

The benchmark palm oil contract FCPOc3 for October delivery on the Bursa Malaysia Derivatives Exchange was up 15 ringgit, or 0.4%, to 3,738 ringgit ($843.79) a metric ton by the midday break.

Palm oil and soyoil imports in the world's top importer India soared to near one-year highs in July, as refiners increased purchases for upcoming festivals amid a correction in prices, the Solvent Extractors' Association of India (SEA) said on Wednesday.

Malaysia's end-July palm oil stocks shrank 5.35% from the previous month to 1.73 million metric tons, the lowest since March, the Malaysian Palm Oil Board (MPOB) said on Monday.

Palm oil with stagnant production should find good support around 3,600 ringgit ($812.64) despite a narrow spread with soy oil, said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading firm.

Chicago soyoil is heavily oversold and the risk of a market reversal is "quite imminent", although global macro weaknesses, higher U.S. production and lower Chinese demand will keep a cap on a sharp reversal, he said.

Soyoil prices on the Chicago Board of Trade BOcv1 advanced 0.46% but remained near its lowest since April 2021. Dalian's most active soyoil contract DBYcv1 gained 0.8% after a three-session decline, while its palm oil contract DCPcv1 strengthened 0.97%.

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

The Malaysian ringgit MYR=, palm's currency of trade, weakened 0.34% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.

Oil prices rose on Thursday, supported by optimism that potential U.S. interest rate cuts will boost economic activity and fuel consumption though concerns over slower global demand curbed gains.O/R

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Palm oil may edge up to resistance at 3,764 ringgit per metric ton, where a wave 4 peaked, said Reuters technical analyst Wang Tao. TECH/C

($1 = 4.4300 ringgit)

Reporting by Gabrielle Ng; Editing by Rashmi Aich and Janane Venkatraman

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Zhengzhou rapeseed oil 0#COI:
European edible oil prices/trades OILS/E