* Palm sees third session of gains this week
* Supported by slower output growth talk, steady demand

(Updates latest prices)

27/05/206 (Reuters) - Malaysian palm oil futures rose on Thursday to record a third session of gains this week, amid expectations of slow output growth and sustained Ramadan demand.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 1.4 percent to 2,579 ringgit ($632) per tonne in the evening. It earlier reached an intra-day high of 2,595 ringgit, its highest in a week.

Palm suffered losses in the last two weeks, impacted by the sell-off in China's commodities markets and hitting a near three-month low on Monday, tracking weak rival Chinese oils.

Traded volumes stood at 45,999 lots of 25 tonnes each at the close of trade, compared with a 2015 daily average of 44,600.

"Production is not going up drastically, and we have seen some growth in demand, which will continue in June," said a trader from Kuala Lumpur.

"While peak demand is a month before Ramadan, it will stay on until mid June."

Better demand for palm oil and lower-than-expected output will dent current stockpile levels, helping to support benchmark prices. Malaysia's palm oil inventories stood at 1.8 million tonnes at the end of April. (MYPOMS-TPO)

While a dry weather El Nino is seen impacting output in top producers Indonesia and Malaysia, an impending La Nina, which brings wet weather across Asia, could reverse the trend. Palm oil production is also set to rise this quarter in line with the seasonal trend. (MYPOMP-CPOTT)

The holy month of Ramadan, which begins in early June this year, sees higher consumption of palm oil for cooking as Muslims break their fast with feasting.

Malaysian palm oil shipments gained 8-11 percent over May 1 - 25 versus the same period last month, according to data from cargo surveyor Intertek Testing Services.

In related vegetable oils, the Chicago Board of Trade soyoil contract for July was up 1.3 percent, while the September soybean oil contract on the Dalian Commodity Exchange rose 1.8 percent.

Palm, soy and crude oil prices at 1030 GMT:

Contract Month Last Change Low High Volume

MY PALM OIL JUN6 2618 +44.00 2580 2620 195

MY PALM OIL JUL6 2605 +37.00 2571 2619 5653

MY PALM OIL AUG6 2580 +35.00 2545 2595 22228

CHINA PALM OLEIN SEP6 5208 +150.00 5120 5212 823516

CHINA SOYOIL SEP6 5922 +104.00 5862 5934 599138

CBOT SOY OIL JUL6 31.74 +1.28 31.27 31.85 9068

INDIA PALM OIL MAY6 534.00 +0.74 530.10 534.9 591

INDIA SOYOIL JUN6 643.25 +3.80 639.4 645.7 44270

NYMEX CRUDE JUL6 49.90 +0.34 49.53 49.97 66515

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel

($1 = 4.0780 ringgit)
($1 = 67.1750 Indian rupees)
($1 = 6.5557 Chinese yuan)