* Palm strengthens after seeing early trade decline

* Market up on stronger soybean oils - trader

(Updates latest prices, quote)

20/10/2016 (Reuters) - Malaysian palm oil strengthened on Wednesday evening, tracking stronger performing rival soyoil, after a market correction on weaker exports pulled it down in early trade.

Palm posted its strongest daily gain two months on Monday and climbed to its highest levels in two-and-a-half-years on Tuesday, tracking soyoil gains on the Chicago Board of Trade and China's Dalian Commodity Exchange, before dropping sharply in the latter part of the previous session.

Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange was up 0.7 percent to 2,732 ringgit ($652) a tonne at the end of the trading day.

Traded volumes stood at 48,088 lots of 25 tonnes each on Wednesday evening, above the 2015 daily average of 44,600 lots.

Soybean oil was higher on both the Chicago Board of Trade and the Dalian Commodity Exchange, leading to a pick up in trading momentum in palm, said a futures trader based in Kuala Lumpur.

Palm oil prices are impacted by soyoil's performance, as they compete for a share of the global vegetable oils market.

The December soybean oil contract on the Chicago Board of Trade rose 0.5 percent, while the January soybean oil contract on China's Dalian Commodity Exchange rose 1.2 percent.

Palm, soy and crude oil prices at 1057 GMT

Contract Month Last Change Low High Volume

MY PALM OIL NOV6 2752 +27.00 2720 2760 744

MY PALM OIL DEC6 2733 +19.00 2705 2749 9139

MY PALM OIL JAN7 2733 +18.00 2707 2752 27940

CHINA PALM OLEIN JAN7 5832 +12.00 5680 5858 1359334

CHINA SOYOIL JAN7 6686 +80.00 6514 6718 952176

CBOT SOY OIL DEC6 35.22 +0.15 34.97 35.53 11381

INDIA PALM OIL OCT6 534.30 +7.30 526.00 535.3 1189

INDIA SOYOIL OCT6 656.5 +0.65 655 657 1380

NYMEX CRUDE NOV6 50.98 +0.69 50.69 51.08 13806

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 = 4.1900 ringgit)
($1 = 66.6800 Indian rupees)
($1 = 6.7355 Chinese yuan)