VEGOILS-Palm oil dips on correction; but weak ringgit caps losses

* Market declines after "sharp rise" last week - trader

* Ringgit falls to weakest level in 9 months

By Emily Chow

KUALA LUMPUR, Sept 3 (Reuters) - Malaysian palm oil futures shed

previous session's sharp gains to edge lower in early trade on Monday, but

a weaker ringgit curbed further declines in the edible oil.

A weaker ringgit, palm oil's traded currency, usually makes it cheaper

for holders of foreign currencies. The ringgit fell 0.3 percent to 4.1220

against the dollar around noon on Monday, its weakest levels since Nov. 22.

The benchmark palm oil contract for November delivery on the

Bursa Malaysia Derivatives Exchange was slightly down 0.04 percent at 2,247

ringgit ($545.12) a tonne on Monday.

The contract had jumped 1.4 percent in the previous session, and had

gained 1.3 percent on-week, its strongest weekly gains in three weeks.

Trading volumes stood at 8,629 lots of 25 tonnes each at noon.

(1FCPO-TOT)

"The market is taking a breather following a sharp rise last week,"

said a futures trader in Kuala Lumpur, adding the market was quiet in trade

and declines were capped due to a weak ringgit.

Better exports could also support the market, another trader said, as

data from cargo surveyors showed that palm oil shipments from Malaysia rose

3 percent-4 percent for the full month of August.

Last month, Malaysia lowered its export tax on crude palm oil for

September to 0 percent, which could encourage demand, said the trader.

In other related oils, the January soybean oil contract on China's

Dalian Commodity Exchange was trading flat, while the Dalian

January palm oil contract was down 0.2 percent. The U.S. markets

are closed on Monday.

Palm oil prices are impacted by movements of other edible oils, as they

compete for a share in the global vegetable oils market.

Palm, soy and crude oil prices at 0457 GMT

Contract Month Last Change Low High Volume

MY PALM OIL SEP8 2191 -9.00 2187 2191 28

MY PALM OIL OCT8 2227 -4.00 2218 2230 540

MY PALM OIL NOV8 2247 -1.00 2235 2250 4828

CHINA PALM OLEIN JAN9 4884 -10.00 4822 4892 314080

CHINA SOYOIL JAN9 5804 +4.00 5730 5814 300372

CBOT SOY OIL DEC8 28.77 +1.30 0 0 0

INDIA PALM OIL SEP8 600.80 +1.30 599.70 600.9 240

INDIA SOYOIL SEP8 738.1 +2.35 736.5 739.1 640

NYMEX CRUDE OCT8 69.61 -0.19 69.53 70.00 23481

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 = 4.1220 ringgit)

($1 = 70.8200 Indian rupees)

($1 = 6.8340 Chinese yuan)

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