* Palm sees first decline in three sessions
* Palm earlier reached near three-week high
* Market drops tracking poor performing rival oils -trader

(Updates latest prices, quotes)

02/06/2016 (Reuters) - Malaysian palm oil futures fell from a near three-week high reached earlier on Wednesday, coming under pressure from weakness in other oils.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.8 percent at 2,598 ringgit ($627) per tonne at the end of the trading day.

Prices had earlier reached an intraday high of 2,634 ringgit which was palm oil's strongest level since May 12. Traded volumes stood at 44,926 lots of 25 tonnes each, above the 2015 average of 44,600.

Traders said the market fell on weaker oils, singling out lower soybean on the Chicago Board of Trade (CBOT).

"Palm fell in anticipation of a weaker CBOT tonight," one trader said.

The Chicago Board of Trade soyoil contract for July lost 0.8 percent, while the September soybean oil contract on the Dalian Commodity Exchange fell by 0.7 percent.

Palm oil had risen earlier on news of in increase in Malaysia's biodiesel mandate, which controls the amount of biofuel in diesel.

Malaysia said it would raise the amount of palm oil in the diesel fuel pool for the transport sector to 10 percent beginning in June, from 7 percent currently. For the industrial sector, the increase will be to 7 percent.

In comparison, Indonesia, the world's largest palm oil producer, aims to raise the minimum bio content of diesel to 20 percent this year.

The offer price for crude palm kernel oil stood at 5076.12 ringgit per tonne PKO-MYSTH-M1 on late on Wednesday, according to price assessments by Thomson Reuters.

  Palm, soy and crude oil prices at 1045 GMT:
 Contract          Month    Last   Change     Low   High  Volume
 MY PALM OIL       JUN6     2620   -11.00    2620   2657       9
 MY PALM OIL       JUL6     2615   -23.00    2613   2650    2093
 MY PALM OIL       AUG6     2598   -22.00    2592   2634   23342
 CHINA PALM OLEIN  SEP6     5246    -2.00    5224   5292  734992
 CHINA SOYOIL      SEP6     5914   -40.00    5886   5956  510404
 CBOT SOY OIL      JUL6    31.56    -0.26    31.5  31.94    6650
 INDIA PALM OIL    JUN6   527.60    -4.50  526.20  532.4     761
 INDIA SOYOIL      JUN6    644.8    -4.45   643.5  649.4   17570
 NYMEX CRUDE       JUL6    48.49    -0.61   48.23  49.09   87399

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 = 4.1430 ringgit)
($1 = 67.3900 Indian rupees)
($1 = 6.5790 Chinese yuan)