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VEGOILS-Palm hits 7-week low on sluggish exports as buyers pick up rival soy

* Palm hits new seven-week low, weighed down by weak exports

* Palm prices drop for second month this year

* Export data from cargo surveyors due Saturday and Tuesday

(Updates latest prices)

By Emily Chow

KUALA LUMPUR, April 29 (Reuters) - Malaysian palm oil

futures declined on Friday to a new seven-week low, as palm

exports slow due to stronger demand for rival soyoil.

The palm oil contract for July delivery on the

Bursa Malaysia Derivatives Exchange fell 0.4 percent to 2,593

ringgit ($664) per tonne at the close of trade.

It declined for a third week this month, and has lost 5.6

percent since the start of April.

Palm earlier hit a new seven-week low of 2,570 ringgit, its

weakest since March 11. Traded volumes were 40,242 lots of 25

tonnes each, versus a 2015 daily average of 44,600.

"Since the palm and soy spread is narrow, people are taking

soy. We have to see if demand comes in May, that will set the

tone," said a Kuala Lumpur-based trader, adding prices were

unlikely to recover to 2,700 ringgit if demand remained weak.

"We are expecting Ramadan demand but it is not showing up

fully yet."

The holy Muslim month of Ramadan, known for its communal

fasting and feasting, usually increases the consumption of palm

oil for cooking. Demand for the tropical oil usually picks up

one to two months ahead of the festival, which starts in early

June this year.

Recent cargo surveyor data recorded zero to little growth in

export demand for Malaysian palm oil shipments between April 1

and April 25 from a month ago.

Data for the full month of April is scheduled for release on

Saturday and Tuesday, but traders expect little improvement for

April 1-30.

Palm oil may stabilise around a support at 2,571 ringgit per

tonne, and then test a resistance at 2,594 ringgit, according to

technical analysis by Reuters market analyst for commodities and

energy technicals Wang Tao.

In competing oils, the September soybean oil contract

on the Dalian Commodity Exchange fell 1.2 percent,

while the May Chicago Board of Trade soyoil contract rose

0.5 percent.

The offer price for crude palm kernel oil stood at 4,811.57

ringgit per tonne (PKO-MYSTH-M1) in the evening, according to

price assessments by Thomson Reuters.

Palm, soy and crude oil prices at 1046 GMT:

Contract Month Last Change Low High Volume

MY PALM OIL MAY6 2570 -12.00 2545 2574 1071

MY PALM OIL JUN6 2590 -8.00 2570 2607 4741

MY PALM OIL JUL6 2592 -8.00 2570 2609 21376

CHINA PALM OLEIN SEP6 5450 -46.00 5402 5520 924012

CHINA SOYOIL SEP6 6142 -72.00 6136 6252 650746

CBOT SOY OIL JUL6 33.48 +0.00 33.15 33.48 11995

INDIA PALM OIL APR6 564.00 +0.00 563.30 564.3 1130

INDIA SOYOIL MAY6 650.3 -4.85 647 653 49860

NYMEX CRUDE JUN6 46.47 +0.44 45.63 46.63 83775

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 = 3.9030 ringgit)

($1 = 66.4400 Indian rupees)

($1 = 6.4840 Chinese yuan)

(Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)