* Palm oil falls 1.5 Pct after rallying to highest since July 5

* Market up 1.7 pct this week, second week of gains

* Prices seen supported by demand, market eyes export data

(Updates prices, adds ringgit's weekly drop)

22/07/2016 (Reuters) - Malaysian palm oil futures fell on Friday, after climbing to a two-week high in the prior session, although expectations of strong demand for the vegetable oil kept a floor under prices.

The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange closed down 1.5 percent to 2,317 ringgit ($571.6) a tonne. On Thursday, it climbed to 2,368 ringgit, highest since July 5. Volumes stood at 32,734 by close.

"We are seeing some chart-related selling at current levels, as bargain hunting and short covering start to fade," said one Kuala Lumpur-based trader, adding though that export sales are expected to remain strong.

Exports of Malaysian palm oil products for July 1-20 rose 14 percent from a month earlier, data from cargo surveyor Intertek

Testing Services showed, while Societe General de Surveillance reported export growth of 15.3 percent.

The market is awaiting the next update on export demand from cargo surveyors due on Monday.

"Bullish fundamentals and a weaker ringgit will cushion any attempt to sell," the Kuala Lumpur trader said.

This week, the ringgit has slipped almost 3 percent, its biggest such loss in 10 months, making palm oil cheaper for holders of other currencies.

Palm oil futures have risen 1.7 percent for the week - their second straight week of gains - with a drop in soybean prices failing to dent the bullish sentiment in palm oil.

"Palm is still the cheapest edible oil in the market," the trader said, adding that palm olein is being quoted $80 a tonne below soybean oil in Argentina for August shipment.

While Chicago soybeans have lost 6 percent this week, soyoil is set to end the week down about half a percent.

Palm oil may drop to a support at 2,302 ringgit as it failed to break a resistance at 2,374 ringgit, said a Reuters analyst for commodities and energy technicals.

The most-actively traded contract for palm olein on the Dalian Commodity Exchange gave up 3 percent, while Dalian soybean oil dropped 2 percent.

Palm, soy and crude oil prices at 1011 GMT

Contract Month Last Change Low High Volume

MY PALM OIL AUG6 2362 -32.00 2357 2394 608

MY PALM OIL SEP6 2340 -33.00 2334 2366 5026

MY PALM OIL OCT6 2317 -36.00 2312 2347 17553

CHINA PALM OLEIN JAN7 4948 -152.00 4930 5106 883846

CHINA SOYOIL JAN7 6182 -128.00 6148 6318 710566

CBOT SOY OIL DEC6 31.26 -1.10 31.25 31.82 7142

INDIA PALM OIL JUL6 522.70 -1.10 522.20 524.8 528

INDIA SOYOIL AUG6 640.25 -5.60 638.9 645.6 37300

NYMEX CRUDE SEP6 44.69 -0.06 44.25 44.90 73176

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 = 4.535 ringgit)