Updates midday prices and adds analyst quote

SINGAPORE, Aug 30 (Reuters) -Malaysian palm oil futures rose on Friday and were set fortheir first monthly rise in three months, buoyed by stronger rival oil contracts, while traders awaited news from Indonesia and India on export and import taxes.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange rose 50 ringgit, or 1.27%, to 3,990 ringgit ($925.75) a metric ton by the midday break.

The contract has gained 3.18% so far this week, and 2.1% for the month.

The palm market is tracking the rise in Chicago soyoil and Dalian oils higher, while there is a sudden buying in the cash market, and overall sentiment remains strong as buyers are actively buying on dips, said Lingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Dalian's most-active soyoil contract DBYcv1 climbed 1.78%, while its palm oil contract DCPcv1 advanced 1.3%. Soyoil prices on the Chicago Board of Trade BOcv1 rose 0.9%.

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

Meanwhile, yhemarket is also expecting Indonesia to increase its referenceprice in September, Lingam added.

Top producer Indonesia is due to set its palm oil reference price and export tax and levy for September by the end of the month.

Key importer India is considering a hikein import taxes on vegetable oils, which could hit demand and reduce overseas purchases of palm oil.

The Malaysian ringgit MYR=, palm's currency of trade, weakened 0.15% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.

Oil prices inched higher on Friday and were headed for weekly gains, as investors weighed supply concerns in the Middle East, although signs of weakened demand limited gains. O/R

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

($1 = 4.3100 ringgit)

Reporting by Gabrielle Ng; Editing by Varun H K and Sonia Cheema

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Indian solvent SOLVENT01
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Dalian refined palm oil futures 0#DCP:
Zhengzhou rapeseed oil 0#COI:
European edible oil prices/trades OILS/E