* Palm falls after two sessions of gains

* Ringgit gains to strongest since May 27, weighing on palm -trader

* Market could still trade range-bound as demand slows and output rises -trader

(Updates latest prices)

07/06/2016 (Reuters) - Malaysian palm oil futures retreated from two sessions of gains to trade lower on Monday as the ringgit strengthened to its strongest level in more than a week and as expectations of lower post-Ramadan demand hit sentiment.

A stronger ringgit weighed down on palm, with the Malaysian currency hitting 4.0800 per dollar on Monday, its strongest level since May 27 after downbeat US jobs data lowered expectations of a rate hike in June.

The ringgit gained 1.2 percent against the dollar to reach 4.0950 in the evening, making palm oil more expensive for foreign currency holders.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was down 0.3 percent at 2,659 ringgit ($649) per tonne on Monday at the close of trade.

Traded volume stood at 44,927 lots of 25 tonnes each in the evening, compared with the 2015 average of 44,600.

"The stronger ringgit is the primary concern today," said a trader from Kuala Lumpur, adding palm was expected to trade range-bound in the coming days.

"I see a slowdown in June demand, it won't be as strong as before and output is also on the rising trend."

Palm oil production rises seasonally in the second and third quarters of the year, adding to stockpiles and capping gains on palm prices. (MYPOMP-CPOTT)

Post-Ramadan demand is also seen slowing in June, pulling down palm prices.

Palm oil demand usually rises a month before Ramadan and tapers off afterward. The holy month-long festival which began on Monday sees Muslims breaking their fast with communal feasting, incurring a higher demand of palm oil for cooking purposes.

May exports are seen rising 13 percent from a month ago, according to a Reuters poll, while output is forecast to rise 3.9 percent. End-stocks in Malaysia, the world's second largest palm producer, are expected to fall 8.8 percent to 1.64 million tonnes.

In related vegetable oils, the Chicago Board of Trade soyoil contract for July rose 1.2 percent, while the September soybean oil contract on the Dalian Commodity Exchange went up 1.8 percent.

The offer price for crude palm kernel oil stood at 5,373.7 ringgit per tonne (PKO-MYSTH-M1) in the evening, according to price assessments by Thomson Reuters.

Palm, soy and crude oil prices at 1054 GMT:

Contract Month Last Change Low High Volume

MY PALM OIL JUN6 2666 -9.00 2653 2669 198

MY PALM OIL JUL6 2674 -6.00 2660 2678 2807

MY PALM OIL AUG6 2659 -6.00 2643 2666 22328

CHINA PALM OLEIN SEP6 5394 +46.00 5318 5410 575278

CHINA SOYOIL SEP6 6174 +108.00 6070 6184 495524

CBOT SOY OIL JUL6 32.59 +0.33 32.34 32.65 5139

INDIA PALM OIL JUN6 536.10 +4.20 529.50 536.6 981

INDIA SOYOIL JUN6 648.65 +0.15 646.3 650 16520

NYMEX CRUDE JUL6 49.12 +0.50 48.71 49.27 54853

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 = 4.0950 ringgit)
($1 = 67.0050 Indian rupees)
($1 = 6.5645 Chinese yuan)