VEGOILS-Palm falls on stronger ringgit, but sees 1st weekly gain in three

* Palm sees losses at close of trade

* Market sees 2 pct weekly gain

* Rising ringgit, moderate Ramadan demand cap gains -trader

(Updates latest prices, adds quote)

By Emily Chow

KUALA LUMPUR, May 27 (Reuters) - Malaysian palm oil futures

fell at closing trade on Friday evening, weighed down by a

stronger ringgit which triggered some selling, but recorded its

first weekly gain in three on expectations of

lower-than-expected output and steady Ramadan demand.

The ringgit hit 4.0600 per dollar earlier in the

day, its strongest level in more than a week, before settling at

4.0760 on Friday evening.

A stronger ringgit, the currency of trade for palm oil,

makes it cheaper for holders of foreign currencies.

The palm oil contract for August delivery on the

Bursa Malaysia Derivatives Exchange declined 0.8 percent to

reach 2,558 ringgit ($628) per tonne in the evening, after

hitting an intraday low of 2,555 ringgit.

Palm has gained for three out of five sessions so far this

week and was up 2 percent on the week, on track for its first

weekly gain in three weeks.

It rose 1.4 percent on Thursday.

Traded volumes stood at 51,908 lots of 25 tonnes each on

Friday evening, compared with a 2015 daily average of 44,600.

"The ringgit was stronger in the morning, which started some

profit-taking," a trader from Kuala Lumpur said.

"Not helping is the demand side; we are sitting in the month

for Ramadan demand now but not seeing much activity."

Another trader added that the market likely fell on

technical selling triggered by the stronger ringgit.

Demand for palm oil usually comes in one to two months

before Ramadan, which begins in early June this year. The Muslim

holy season is a month of fasting and feasting, which sees

higher demand for palm oil used in cooking.

Leading up to Ramadan, Malaysian palm oil shipments have

gained 8-11 percent over May 1-25 from last month, according to

cargo surveyor data.

Better demand for palm oil and lower-than-expected output

are expected to dent current stockpile levels, supporting

benchmark prices.

In competing vegetable oils, the Chicago Board of Trade

soyoil contract for July was up 0.7 percent, while the

September soybean oil contract on the Dalian Commodity Exchange

fell 0.1 percent.

The offer price for crude palm kernel oil stood at 5026.52

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

price assessments by Thomson Reuters.

Palm, soy and crude oil prices at 1038 GMT:

Contract Month Last Change Low High Volume

MY PALM OIL JUN6 2587 -31.00 2580 2621 836

MY PALM OIL JUL6 2587 -20.00 2581 2621 8117

MY PALM OIL AUG6 2558 -20.00 2555 2598 24363

CHINA PALM OLEIN SEP6 5228 +56.00 5118 5254 828580

CHINA SOYOIL SEP6 5890 -6.00 5832 5958 571734

CBOT SOY OIL JUL6 31.25 +0.64 30.91 31.38 7590

INDIA PALM OIL MAY6 533.20 +0.08 532.10 534.7 441

INDIA SOYOIL JUN6 641.15 +0.40 640.4 643.5 28170

NYMEX CRUDE JUL6 48.98 -0.50 48.83 49.47 64744

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 = 4.0760 ringgit)

($1 = 67.0350 Indian rupees)

($1 = 6.5597 Chinese yuan)

(Reporting by Emily Chow; Editing by Biju Dwarakanath)