* End-Sept palm stocks rise 5.7 pct m/m - MPOB

* At 1.72 mt, output weakest for Sept since 2010

(Updates prices, adds quote)

11/10/2016 (Reuters) - Malaysian palm oil futures declined for a second straight session on Monday evening, weighed down by higher September end-stocks and on a technical correction.

Benchmark palm oil futures for December on the Bursa Malaysia Derivatives Exchange were down 0.7 percent at 2,542 ringgit ($612) a tonne at the end of the trading day.

Palm fell 0.7 percent in the previous session, and 2.8 percent last week, its sharpest drop since the week ending July 8.

Traded volumes stood at 42,420 lots of 25 tonnes each on Monday evening, just below the 2015 daily average of 44,600 lots.

"Stocks came above market expectations," said a futures trader based in Kuala Lumpur, referring to industry data released by regulator the Malaysian Palm Oil Board (MPOB) on Monday.

Inventories rose 5.7 percent to 1.55 million tonnes, while exports dropped by 20.4 percent. Output rose a marginal 0.8 percent on the month to 1.72 million tonnes in September, according to government data.

Palm oil shipments, however, rose in the first 10 days of October. They gained 10.8 percent from the corresponding period last month on stronger demand from Europe, according to data from cargo surveyor Intertek Testing Services.

Data released by another cargo surveyor, Societe Generale de Surveillance, however showed a smaller 1.9 percent gain in Malaysian exports during the same time period.

Another trader added the market could be lower on a technical correction, and would only "retrace higher in an  oversold condition."

In other related vegetable oils, the soybean oil December contract on the Chicago Board of Trade was down 0.4 percent, while the January soybean oil contract on the Dalian Commodity Exchange gained 0.7 percent.

Palm, soy and crude oil prices at 1109 GMT

Contract Month Last Change Low High Volume

MY PALM OIL OCT6 2580 -65.00 2579 2580 17

MY PALM OIL NOV6 2549 -21.00 2546 2582 3290

MY PALM OIL DEC6 2539 -19.00 2539 2580 21930

CHINA PALM OLEIN JAN7 5466 -72.00 5404 5492 529912

CHINA SOYOIL JAN7 6334 +46.00 6262 6344 339394

CBOT SOY OIL DEC6 33.18 +0.00 33.13 33.47 7454

INDIA PALM OIL OCT6 511.80 +0.00 509.60 514.5 1228

INDIA SOYOIL OCT6 646.55 -6.45 646.5 650.8 11660

NYMEX CRUDE NOV6 50.21 +0.40 49.15 50.28 96875

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 = 4.1550 ringgit)
($1 = 66.5919 Indian rupees)
($1 = 6.6685 Chinese yuan)