* Palm hits more than two-week low at 2,524 rgt/T

* Output seen rising while exports fall

* Palm falls, tracking external markets - trader

(Updates latest prices, quote)

13/06/2016 (Reuters) - Malaysian palm oil futures fell for a sixth straight session on Monday, dropping early as traders foresaw rising output amid slowing demand and again in the evening tracking rival oil prices.

Palm oil futures for August delivery on the Bursa Malaysia Derivatives Exchange fell 2.1 percent to 2,525 ringgit ($618) per tonne at the closing trade.

Traded volumes stood at 50,003 lots of 25 tonnes each, higher than the 2015 daily average of 44,600 lots.

The contract hit an intraday low of 2,524 ringgit, its weakest since May 25, after falling 3.2 percent last week, which was the sharpest weekly loss since the end of April.

"In general, traders feel production is getting higher and exports may not be able to catch up," said a trader based in East Malaysia. "I think the market is bottoming out and will soon go up again when stocks are low."

The market declined sharply in the evening, tracking rival oils, said another trader.

"China's Dalian Commodity Exchange posted sharper losses and soy slipped into negative territory," the trader said, referring to soyoil futures on the Chicago Board of Trade.

Malaysia, the world's second largest palm producer, saw its May output rise 4.9 percent from April levels. Production is expected to gain further in the coming months in line with a seasonal trend. (MYPOMP-CPOTT)

While exports rose 9.3 percent in May, shipments to India, Pakistan and the Middle East are expected to fall in June as demand is seen cooling after Ramadan.

The Muslim festival sees higher usage of the tropical oil for cooking for the communal feasts that break each day's fast in the month leading up to Eid al-Fitr.

Exports from Malaysia fell 6-10 percent in the first 10 days of June, according to cargo surveyor data, mainly as shipments to India declined.

In competing vegetable oils, the Chicago Board of Trade soyoil contract for July declined 0.9 percent. The September soybean oil contract on the Dalian Commodity Exchange fell 0.7 percent, while the most actively traded September contract for palm olein dropped 2.7 percent.

Palm, soy and crude oil prices at 1039 GMT:

Contract Month Last Change Low High Volume

MY PALM OIL JUN6 2620 -6.00 2620 2635 122

MY PALM OIL JUL6 2540 -54.00 2535 2601 3312

MY PALM OIL AUG6 2525 -55.00 2524 2593 21915

CHINA PALM OLEIN SEP6 5250 -146.0 5248 5452 708480

CHINA SOYOIL SEP6 6132 -44.00 6122 6280 473150

CBOT SOY OIL JUL6 32.49 -0.27 32.35 33.16 11220

INDIA PALM OIL JUN6 523.80 -4.00 522.00 527 1933

INDIA SOYOIL JUN6 639.6 -4.55 638.5 644.6 8680

NYMEX CRUDE JUL6 48.48 -0.59 48.21 48.93 62837

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 = 4.0860 ringgit)
($1 = 67.1400 Indian rupees)
($1 = 6.5850 Chinese yuan)