* Market drops on Friday to record third week of losses
* Palm fell as market lacked confidence, tracking declining soy -trader

(Updates prices)

24/06/2016 (Reuters) - Malaysian palm oil futures fell on Friday evening for a third consecutive week of losses, tracking declining rival vegetable oils and amid investor concerns over Britain's vote to leave the European Union.

The market fell for two sessions this week before paring losses in late trade on Thursday, but declined on Friday to fall 2.9 percent this week.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange fell 0.2 percent to 2,379 ringgit ($582) per tonne in the evening, unchanged from during the midday break. Traded volumes stood at 65,216 lots of 25 tonnes each at the close of trade.

Palm has declined in nearly all of its sessions in the last three weeks as poor fundamentals weighed on prices.

Traders expect output to rise in line with the seasonal trend and for exports to weaken after Ramadan demand in the coming months. The Muslim holy festival entails day-long fasts broken by communal feasting, incurring higher palm oil demand for cooking the month before Ramadan.

"The vote counting in favour of a Brexit caused a lack of market confidence," said a trader from Malaysia. "Soyoil trading is also down."

Global markets are seeing a shake-up on Friday as Britain voted to leave the European Union in a landmark referendum, pulling down stock markets and currencies across the region.

In competing vegetable oils, the Chicago Board of Trade soyoil contract for July fell 1.9 percent, while the September soybean oil contract on the Dalian Commodity Exchange declined 1.6 percent.

Palm, soy and crude oil prices at 1026 GMT

Contract Month Last Change Low High Volume

MY PALM OIL JUL6 2470 +4.00 2457 2490 1283

MY PALM OIL AUG6 2412 +4.00 2394 2441 7246

MY PALM OIL SEP6 2382 -2.00 2366 2412 29933

CHINA PALM OLEIN SEP6 5022 -80.00 5000 5126 810070

CHINA SOYOIL SEP6 5910 -96.00 5898 6034 590776

CBOT SOY OIL JUL6 31.16 -0.59 31.06 31.75 7806

INDIA PALM OIL JUN6 506.00 -1.50 505.90 509.4 401

INDIA SOYOIL JUL6 643.3 +0.75 638 645.9 33250

NYMEX CRUDE AUG6 47.51 -2.60 46.70 50.45 271358

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 = 4.0900 ringgit)
($1 = 67.9800 Indian rupees)
($1 = 6.6198 Chinese yuan)