* Palm in sharpest daily drop in a week, second straight decline

* Fall due to weaker soy, falling exports forecast - traders

* Palm still targeting 2,547 ringgit per tonne - technicals

(Updates latest prices)

06/10/2016 (Reuters) - Malaysian palm oil futures dropped on Wednesday evening in their sharpest decline in a week, tracking weaker performing soyoil and on forecasts of falling exports.

Benchmark palm oil futures for December on the Bursa Malaysia Derivatives Exchange fell 1.7 percent to 2,556 ringgit ($618) a tonne at the close of trade.

Prices dropped as low as 2,554 ringgit in late trade, its weakest since Sept. 15, recording a second consecutive decline after two previous winning sessions.

Traded volumes stood at 58,119 lots of 25 tonnes each on Wednesday evening, higher than the 2015 daily average of 44,600 lots.

"Today the market is down on the Chicago Board of Trade's soyoil weakness and technical range trading, as palm is awaiting new leads," said one trader from Kuala Lumpur.

Another trader added that soy was down on expectations of a bumper crop, and with traders forecasting poorer palm oil exports in the coming months, stockpiles would rise as a result.

The soybean oil December contract on the Chicago Board of Trade was down 0.9 percent. Palm's prices are impacted by its rival oilseed soy, as they both compete for a share in the global vegetable oils market.

Palm shipments from Malaysia, the world's No. 2 producer of the tropical oil fell between 15 to 16 percent for the full month of September due to lower demand from top consumers China and India, cargo surveyor data showed.

Demand is seen slowing in the final quarter of the year when consumers in the northern hemisphere switch to soyoil, as palm solidifies in colder temperatures.

September data from industry regulator the Malaysian Palm Oil Board is scheduled for release next Monday.

Palm oil is still targeting its Sept. 14 low of 2,547 ringgit per tonne, according to technical analysis by Reuters market analyst for commodities and energy technicals Wang Tao.

Palm, soy and crude oil prices at 1038 GMT

Contract Month Last Change Low High Volume

MY PALM OIL OCT6 2702 -43.00 2702 2742 167

MY PALM OIL NOV6 2601 -47.00 2600 2656 6784

MY PALM OIL DEC6 2555 -44.00 2554 2610 27838

CHINA PALM OLEIN JAN7 0 +0.00 0 0 0

CHINA SOYOIL JAN7 0 +0.00 0 0 0

CBOT SOY OIL DEC6 32.79 -0.22 32.75 33.2 5754

INDIA PALM OIL OCT6 506.90 -13.60 505.30 521.5 4216

INDIA SOYOIL OCT6 646.9 -1.00 644.1 649 22740

NYMEX CRUDE NOV6 49.57 +0.88 49.10 49.59 73682

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 = 4.1350 ringgit)
($1 = 66.5375 Indian rupees)
($1 = 6.6685 Chinese yuan)