VEGOILS-Palm Sees Strongest Gains in 10-Months on Better Demand, US Soy Supports

* Palm hits intraday and six-week high of 2,419 rgt/T, strongest gains in 10-months

* Market charts 4th consecutive session of gains

* Palm up on stronger demand, recovery in U.S. soy - traders

* Weaker ringgit, improving rival oils support palm

(Updates latest prices, quotes)

04/08/2016 (Reuters) - Malaysian palm oil futures surged to a six-week high on Wednesday evening, recording a fourth consecutive session of gains, as improved demand and a recovery in rival U.S. soy supported prices.

Palm has pared some losses in the last three trading sessions, after falling to a one-week low, tracking weaker rival oils on China's Dalian Commodity Exchange.

Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange gained 3.3 percent in evening trade, its strongest gains in 10 months, settling at 2,415 ringgit ($595) per tonne at the end of the day. It earlier rose to an intraday high of 2,419 ringgit, palm's strongest levels since June 21.

Traded volumes stood at 43,803 lots of 25 tonnes each on Wednesday evening, slightly below the 2015 average of 44,600.

One trader said the market was lifted by stronger short-term demand, while another said palm also rose on a weaker ringgit and better performing U.S. soy on the Chicago Board of Trade.

"The recovery in U.S. soy, which lifted China's Dalian Commodity Exchange, and a weaker ringgit helps as well," the trader said.

A weaker ringgit usually supports palm, as it makes the tropical oil cheaper for foreign currency holders. It weakened 0.7 percent to 4.0560 per dollar on Wednesday evening.

Palm typically tracks the performance of its rival oilseed soy, as they both compete for a share in the global vegetable oils market.

The Chicago soybean oil contract for December was up 1.4 percent, while the most active November soybean contract rose 0.9 percent on bargain hunting after falling to near four-month lows.

The January soybean oil contract on Dalian was up 0.7 percent.

Palm oil shipments from Malaysia, the world's second-largest producer, rose 12-15 percent in July from June, supported by better demand from China and Europe.

Palm, soy and crude oil prices at 1032 GMT

Contract Month Last Change Low High Volume

MY PALM OIL AUG6 2480 +86.00 2401 2480 119

MY PALM OIL SEP6 2435 +79.00 2363 2435 4670

MY PALM OIL OCT6 2417 +77.00 2345 2419 19717

CHINA PALM OLEIN JAN7 5162 +86.00 5088 5192 1023008

CHINA SOYOIL JAN7 6156 +42.00 6112 6172 567872

CBOT SOY OIL DEC6 30.98 +0.04 30.4 31.03 9302

INDIA PALM OIL AUG6 527.90 +9.80 518.20 530.8 3007

INDIA SOYOIL AUG6 639.6 +6.90 633 641.1 33420

NYMEX CRUDE SEP6 39.88 +0.37 39.38 39.94 62694

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 = 4.0560 ringgit)
($1 = 66.9400 Indian rupees)
($1 = 6.6303 Chinese yuan)