* Palm hits 3-wk low at 2,478 rgt/T
* Market falls for 7th consecutive session
* Rising output, weaker exports outlook, falling rival oils drag on palm -trader

(Updates latest prices)

15/06/2016 (Reuters) - Malaysian palm oil futures fell on Tuesday, its seventh straight losing session, as bearish palm fundamentals and declining rival oils weighed on the market.

Traders forecast a rise in seasonal output in the coming months, while exports were seen declining after it peaked in May to accommodate Ramadan demand.

Palm oil futures for August delivery on the Bursa Malaysia Derivatives Exchange dropped 1.9 percent to 2,481 ringgit ($605) per tonne at the close of trade on Tuesday.

It earlier fell to 2,478 ringgit per tonne, the lowest since May 25.

Traded volumes stood at 55,617 lots of 25 tonnes each at the end of trade.

"It's a combination of declining exports, an increase in output and weakness in soy, seen in Dalian and all commodities markets in general," said a trader based in Kuala Lumpur.

"It's almost at an oversold situation currently, we anticipate short covering to emerge at current levels." Malaysian palm oil output in May rose 4.9 percent from April as production begins its seasonal climb. While exports surged 9.3 percent, according to government data, it is expected to decline as demand slows after Ramadan.

The fasting month sees higher usage of palm oil for cooking, as Muslims break their fast with communal feasting. Buyers usually stock up on palm oil in the month leading up to Ramadan, which began on June 6 this year.

Export data from cargo surveyors for the first half of June is scheduled for release on Wednesday. Exports dropped 5-10 percent in the first ten days of June compared with May's corresponding period, according to the cargo surveyors' data.

In competing vegetable oils, the Chicago Board of Trade soyoil contract for July fell 0.8 percent, and the September soybean oil contract on the Dalian Commodity Exchange declined 2.2 percent.

Palm, soy and crude oil prices at 1022 GMT:

Contract Month Last Change Low High Volume

MY PALM OIL JUN6 0 +0.00 0 0 0

MY PALM OIL JUL6 2488 -51.00 2482 2530 4738

MY PALM OIL AUG6 2481 -47.00 2478 2518 23750

CHINA PALM OLEIN SEP6 5170 -190.00 5160 5278 761986

CHINA SOYOIL SEP6 6076 -136.00 6038 6172 557338

CBOT SOY OIL JUL6 32.26 -0.25 32.18 32.51 5939

INDIA PALM OIL JUN6 517.60 -6.30 517.50 522.8 1156

INDIA SOYOIL JUN6 636 -2.90 635.1 637.8 5390

NYMEX CRUDE JUL6 48.19 -0.69 48.02 48.59 53808

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 = 4.1030 ringgit)
($1 = 67.2500 Indian rupees)
($1 = 6.5920 Chinese yuan)