* Palm reverses losses to hit 2,512 rgt/T, highest since June 14
* Market rises on surprise dip in July inventory -trader

 (Updates latest prices, quote)

11/08/2016 (Reuters) - Malaysian palm oil futures reversed losses to end the trading day higher on Wednesday, as official government data showed that stockpiles declined unexpectedly at the end of July.

The Malaysian Palm Oil Board (MPOB) said palm oil stocks at the end of last month were down 0.2 percent from end-June. Traders had been expecting palm stocks to rise 3.1 percent.

Benchmark palm oil futures for October on the Bursa Malaysia Derivatives Exchange rose 1.4 percent to 2,500 ringgit ($627) per tonne at the close of trade, charting an
eighth session of advances in nine.

It earlier reached a more than two-month high of 2,512 ringgit, its strongest level since June 14. Traded volumes stood at 63,081 lots of 25 tonnes each on Wednesday evening, higher than the 2015 average of 44,600.

"The market had earlier been waiting for MPOB data," one Kuala Lumpur-based trader said.

"Polls thought end-stocks would go up, so this is a bullish factor."

End-July stockpiles in Malaysia, the world's second largest palm producer, fell by 0.2 percent from the previous month to 1.77 million tonnes, versus a Reuters forecast of 1.83 million tonnes.

Palm output rose 3.5 percent month-on-month to 1.59 million tonnes, while exports surged 21 percent to 1.38 million tonnes.

In related vegetable oils, the January soybean oil contract on the Dalian Commodity Exchange was down 0.1 percent while the September soybean oil contract on the Chicago Board of Trade rose 1.3 percent.

    Palm, soy and crude oil prices at 1050 GMT
 Contract          Month    Last   Change     Low   High  Volume
 MY PALM OIL       AUG6     2630   +69.00    2580   2630     102
 MY PALM OIL       SEP6     2536   +40.00    2464   2547    3205
 MY PALM OIL       OCT6     2496   +34.00    2437   2512   31396
 CHINA PALM OLEIN  JAN7     5294   +24.00    5262   5338  838610
 CHINA SOYOIL      JAN7     6226    -4.00    6208   6278  446690
 CBOT SOY OIL      DEC6    32.05    +0.00    31.6   32.2   11181
 INDIA PALM OIL    AUG6   543.70    +7.30  534.00    545    1663
 INDIA SOYOIL      AUG6    636.7    -0.55   635.2  638.5   13090
 NYMEX CRUDE       SEP6    42.39    -0.38   42.08  42.80   69979

 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 = 3.9880 ringgit)
($1 = 66.6900 Indian rupees)
($1 = 6.6320 Chinese yuan)