Updates midday prices and adds analyst quotes

SINGAPORE, Aug 28 (Reuters) -Malaysian palm oil futures edged higher on Wednesday, buoyed by a softer supply outlook in Indonesia and optimism over the top producer's plan to raise its biodiesel mandate.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange rose 13 ringgit, or 0.33%, to 3,936 ringgit ($906.49) a metric ton, rising for a fifth time in six sessions by the midday break.

"Expectations of lower Indonesian palm oil production this year, due to unsupportive weather and ageing trees, are keeping market sentiment bullish," said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co.

Additionally, Indonesia's plans to increase its biodiesel mandate in 2025 are likely to limit export availability, thereby supporting global palm oil prices, added Saiya.

Indonesia's June palm oil exports rose 71.8% from May to 3.385 million metric tons, but lost 1.88% year-on-year, data from the Indonesia Palm Oil Association showed.

Malaysia's palm oil product exports for Aug. 1-25 fell between 14.1% and 14.9% from a month earlier, data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia showed.

Indonesia's trade ministry is mulling a plan to adjust its palm oil export tax to make the commodity more competitive amid weak global demand, Bisnis.com reported on Monday.

"With the lack of fresh impetus, the market has basically priced in most of the variables, and is on a lookout for fresh news for the next move", said Lingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Dalian's most-active soyoil contract DBYcv1 added 0.39%, while its palm oil contract DCPcv1 dropped 0.57%. Soyoil prices on the Chicago Board of Trade BOcv1 ticked up 0.15%.

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

Palm oil may retrace into the range of 3,819 ringgit-3,864 ringgit per ton, following its failure to break resistance at 3,966 ringgit and a falling trendline, said Reuters technical analyst Wang Tao. TECH/C

($1 = 4.3420 ringgit)

Reporting by Gabrielle Ng; Editing by Sumana Nandy and Mrigank Dhaniwala

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