* Palm prices drop, tracking rival soyoil -trader

* Palm may fall to 2,258 ringgit per tonne -technicals

* Stronger July exports do little to lift prices

(Updates latest prices)

26/07/2016 (Reuters) - Malaysian palm oil futures extended losses on Monday, coming off last week's two-week high, as weakness in overseas soybean oil prices lured buyers away from the tropical oil.

Palm's rival soy fell sharply on Friday on the Chicago Board of Trade on expectations of a bumper U.S. crop this fall. Dalian prices slipped a percent on the day and looked set to extend their losses this week.

Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange fell 2.2 percent to 2,268 ringgit ($560) per tonne at the close of trade, an intraday and near one-week low.

Traded volumes stood at 33,690 lots of 25 tonnes each on Monday evening, compared with the 2015 average of 44,600.

Palm oil plunged to a 10-month low earlier this month before recovering to a two-week high of 2,368 ringgit last Thursday. It has lost 1.4 percent so far this month.

"The decline is due to soybean oil prices, which came off sharply on Friday," said a futures trader from Kuala Lumpur, adding that export demand did little to lift prices despite improving data from cargo surveyors.

"The pipeline is dry, so they are buying to have some oil in hand. It's not serious buying, but the figures are good in comparison to June," he said.

Reports from cargo surveyors Intertek Testing Services and Societe Generale de Surveillance showed exports of Malaysian palm oil products from July 1-25 rose about 15 percent from the same time period last month, led by improved demand from Europe and China.

June exports from the world's second largest palm oil producer were at a low base, declining 11.7 percent from May, as demand fell after the Muslim festive season of Ramadan and Eid, official data from government body the Malaysian Palm Oil Board showed earlier this month. (MYPOME-PO)

Palm oil may fall more to 2,258 ringgit, as support at 2,302 ringgit does not seem to hold, said Reuters market analyst for commodities and energy technicals Wang Tao.

The Chicago soybean oil contract for December declined 1 percent, while the January soybean oil contract on the Dalian Commodity Exchange declined 1.9 percent.

Palm, soy and crude oil prices at 1026 GMT

Contract Month Last Change Low High Volume

MY PALM OIL AUG6 2322 -40.00 2322 2354 352

MY PALM OIL SEP6 2288 -52.00 2288 2334 5305

MY PALM OIL OCT6 2268 -52.00 2268 2315 19464

CHINA PALM OLEIN JAN7 4908 -118.00 4886 4962 580694

CHINA SOYOIL JAN7 6128 -116.00 6084 6190 542228

CBOT SOY OIL DEC6 30.38 -0.32 30.35 30.91 8762

INDIA PALM OIL JUL6 520.50 -0.90 520.00 524 591

INDIA SOYOIL AUG6 629.4 -5.05 628.6 636.1 50940

NYMEX CRUDE SEP6 43.89 -0.30 43.82 44.37 62276

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 = 4.0620 ringgit)
($1 = 67.2675 Indian rupees)
($1 = 6.6777 Chinese yuan)