JAKARTA, Dec 27 (Reuters) - Indonesian crude palm oil price rose more than 6 percent on Thursday as the Malaysian market surged to a fresh record and as record prices lured players back to the market.

In a local auction in North Sumatra's Medan, crude palm oil was sold at 8,550 rupiah ($0.910) a kilogram, a 6.5 percent increase from 8,025 rupiah last week before the long holidays to celebrate Christmas and Eid al Adha.

"Record prices finally attracted players," said a dealer with a plantation company in Medan, the home of Belawan port, the key port for palm oil exports.

"Also, the buyer is a local refiner that doesn't have its own plantation, so they are concerned prices may go up again," he said, adding 900 tonnes had changed hands in the auction.

The dealer said the local market was still lacklustre with many plantation firms closed for the long end-year holidays.

Malaysian crude palm oil futures extended their rally on Thursday, climbing more than 2 percent to hit a new high boosted by concerns over global supplies from South America and Asia combined with surging demand.

The benchmark March contract <KPOH8> was up 59 ringgit, or 2 percent, at 3,139 ringgit ($940) a tonne by the lunch break after hitting a high of 3,150 ringgit.

The price of palm oil, used in products ranging from cosmetics and confectionaries to biodiesel, has risen more than 57 percent so far this year.

Crude palm oil at an auction held by PT Astra Agro Lestari <AALI.JK>, Indonesia's largest listed-plantation firm, also rose by 1 percent.

The company sold crude palm oil at 8,285 rupiah a kilogram, up from 8,195 rupiah on Wednesday, free on board Astra Agro's port in Kumai, central Kalimantan.

The state marketing centre in Jakarta is still closed for the end-year holidays. The centre, which sells palm oil from state plantations, will resume crude palm oil auctions on Jan. 7-8, 2008.

Gains in crude palm oil also lifted up the price of palm oil-based cooking oil.

Refined, bleached, deodorised (RBD) palm olein which is used as cooking oil, was offered at 8,350 rupiah a kilogram, up from 8,050-8,100 rupiah a kilogram on Wednesday.

Buyers bid at 8,300 but there were no reports of deals at the price.

"It's difficult to sell at the current price because buyers want a lower price. They prefer to wait until the new year, hoping prices may fall again," said a dealer in a Jakarta-based cooking oil refiner.

Meanwhile, the holiday still dampened interest from overseas buyers.

There was no price quotation for crude palm oil in the export market. ($1 = 9,400 rupiah) (Reporting by Fitri Wulandari; editing by Sugita Katya/James Jukwey)

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Keywords: MARKETS INDONESIA/PALMOIL