* Palm oil hits intraday low of 2,530 ringgit/tonne

* Market likely declined on improving production, weaker rival oils -traders

* Palm may drop towards 2,509 ringgit -technicals

(Updates latest prices, quote)

23/08/2016 (Reuters) - Malaysian palm oil futures fell to their lowest in over a week on Monday, tracking rival oils and as expectations of a pick up in output offset improving export demand.

Benchmark palm oil futures for November on the Bursa Malaysia Derivatives Exchange fell 1.4 percent to 2,543 ringgit ($632) per tonne in the evening. It reached a low of 2,530 ringgit, its weakest levels since Aug. 12 and matching the intraday low on Aug. 16.

Traded volumes stood at 47,396 lots of 25 tonnes each on Monday evening, above the 2015 average of 44,600.

"The market has priced in exports. Now it will be looking at negative news," said a Kuala Lumpur-based trader, referring to forecasts for higher production in August.

A second trader said palm was dragged down by weaker rival oils on China's Dalian Commodity Exchange: "Dalian shows weakness, so traders are taking the opportunity to take profit."

Palm gained over the past three weeks on Malaysian exports, which according to cargo surveyors rose 25 to 27 percent between Aug. 1-20 versus the same period in July.

Tight supplies due to the impact of dry weather linked to an El Nino weather pattern also helped prices. However, the effect of El Nino is now expected to wane due to a seasonal pick up in output.

Palm oil production rose 3.5 percent month-on-month in July, its strongest levels in eight months. (MYPOMP-CPOTT)

Palm oil may drop towards a support at 2,509 ringgit, as it has broken a support at 2,570 ringgit, Reuters market analyst for commodities and energy technicals Wang Tao said.

In related vegetable oils, the Chicago Board of Trade soybean oil December contract fell 1.4 percent, while the January soybean oil contract on the Dalian Commodity Exchange declined 0.9 percent.

Palm, soy and crude oil prices at 1030 GMT

Contract Month Last Change Low High Volume

MY PALM OIL SEP6 2820 -32.00 2805 2868 641

MY PALM OIL OCT6 2632 -42.00 2618 2702 4554

MY PALM OIL NOV6 2542 -36.00 2530 2606 25252

CHINA PALM OLEIN JAN7 5496 -60.00 5480 5584 953410

CHINA SOYOIL JAN7 6354 -56.00 6348 6442 512310

CBOT SOY OIL DEC6 34.08 -0.45 33.99 34.59 8938

INDIA PALM OIL AUG6 560.00 -2.90 556.50 560.7 1063

INDIA SOYOIL SEP6 660 -3.85 657.5 662.5 31380

NYMEX CRUDE SEP6 47.24 -1.28 47.24 48.40 2755

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 = 4.0200 ringgit)
($1 = 67.1950 Indian rupees)
($1 = 6.6535 Chinese yuan)