* Tracks falls in rival vegetable oils
* Palm could seek support around 2,342 rgt/t - Techs (Updates to say palm closed for the second half of trade)

05/07/2016 (Reuters) - Malaysian palm oil futures fell nearly 2 percent on Tuesday and posted their first fall in four sessions, tracking losses in rival vegetable oils.

Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange were down 1.9 percent at 2,355 ringgit ($590) per tonne.

Palm oil hit a one-week high of 2,404 ringgit on Monday, as traders covered their short positions ahead of a two-day holiday for Eid celebrations on Wednesday and Thursday. The market was closed for the second half of trade on Tuesday ahead of the public holidays.

Traded volumes stood at 18,924 lots of 25 tonnes each on Tuesday noon.

"Dalian markets had fallen sharply, possibly on news of no stimulus that was said yesterday," said a Kuala Lumpur-based trader, referring to China's Dalian Commodity Exchange.

Chinese commodities futures, including palm oil, dropped on Tuesday as investors lowered expectations for stimulus measures to spur economic activity in the world's biggest consumer of many raw materials.

China is the world's second largest palm oil consuming country after India.

The September contract for soybean oil, a substitute for palm oil, on the Dalian Commodity Exchange fell 1percent, while the most actively traded September contract for palm olein declined 1.1 percent.

Higher stockpiles in Malaysia could also dent palm oil prices, forecast a Reuters poll of eight traders, analysts and planters. The survey showed inventories likely rose 7.4 percent to 1.77 million tonnes in June, while exports slumped 6.4percent from May.

Output is seen rising for a fourth consecutive month in line with seasonal trend to reach 1.51 million tonnes. (MYPOMP-CPOTT)

Palm oil may seek a support around 2,342 ringgit per tonne and then retest a resistance at 2,402 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

The July offer price for crude palm kernel oil stood at5,059.59 ringgit per tonne (PKO-MYSTH-M1) at noon on Tuesday,according to price assessments by Thomson Reuters.

($1 = 3.9990 ringgit)
($1 = 67.3800 Indian rupees)
($1 = 6.6686 Chinese yuan)