VEGOILS-Palm Oil Reverses Track to Gain Tracking Rival Soy

* Down 0.8 pct this week, fourth weekly fall in a row
* Palm targets 2,399 ringgit/tonne - technical analysis

(Updates latest prices, quotes)

01/07/2016 (Reuters) - Malaysian palm oil futures rose for a second session in four on Friday as better performing rival soy oil gave the market a late boost even though a stronger ringgit weighed on prices earlier in the day.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange were 0.3 percent higher at 2,359 ringgit ($590) per tonne at the close of trade, recording a fourth straight weekly fall.

Traded volumes stood at 28,711 lots of 25 tonnes each on Friday, lower than the 2015 average of 44,600.

"Now palm is up tracking external markets," a trader said of the evening trade, after it fell earlier on a stronger ringgit.

A stronger ringgit, the currency palm oil is traded in, makes the vegetable oil more expensive for holders of foreign currencies. The local currency strengthened 0.7 percent to 3.9960 per dollar.

The Chicago Board of Trade soy oil contract for December rose 1.1 percent while the September soybean oil contract on the Dalian Commodity Exchange surged 1.9 percent.

Palm oil has shed 0.8 percent so far this week, with traders bearish about market fundamentals. Seasonal output is expected to rise from now until the final quarter of the year, while exports are also seen slowing down until the next major festive season of Diwali in late October.

Palm oil shipments from Malaysia dropped 9-11 percent in June compared with a month earlier, with a substantial drop in shipments to India, according to data by cargo surveyors.

Demand for the tropical oil surges during the month leading up to Ramadan. The Muslim holy festival entails day-long fasting followed by communal feasting, incurring higher palm oil demand for cooking purposes.

Technical analysis shows palm oil is heading for a target of 2,399 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

The July offer price for crude palm kernel oil stood at 5,076.12 ringgit per tonne (PKO-MYSTH-M1) on Friday evening, according to price assessments by Thomson Reuters.

Palm, soy and crude oil prices at 1039 GMT

Contract Month Last Change Low High Volume

MY PALM OIL JUL6 2410 +6.00 2400 2434 20

MY PALM OIL AUG6 2381 +6.00 2358 2397 1568

MY PALM OIL SEP6 2358 +6.00 2334 2379 18637

CHINA PALM OLEIN SEP6 5224 +48.00 5208 5298 858536

CHINA SOYOIL SEP6 6226 +118.00 6136 6296 765168

CBOT SOY OIL DEC6 32.41 +0.33 31.92 32.44 11241

INDIA PALM OIL JUL6 505.30 +0.60 503.20 507.4 1802

INDIA SOYOIL JUL6 640 +2.55 638.2 642 33110

NYMEX CRUDE AUG6 47.99 -0.34 47.90 48.68 64820

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 = 3.9960 ringgit)
($1 = 67.3900 Indian rupees)
($1 = 6.6582 Chinese yuan)