* Dalian, U.S. grains continue to drag on palm prices

* Traded volume at 22,140 lots, well below average

* Traders expect volume to pick up next week when fresh data due

(Updates prices, volumes)

quiet trading continued following the Muslim fasting month

holiday period.

By Friday's close, benchmark palm oil for October delivery

on Bursa Malaysia Derivatives was down 0.55 percent at

2,177 ringgit ($571.69) a tonne. The contract was largely

unchanged this week, inching down 0.09 percent.

Trade volumes stood at 22,140 lots of 25 tonnes each on

Friday, well below the roughly 35,000 lots usually traded daily.

"It's the overall lethargy of the market," said a trader at

a foreign commodities brokerage in Kuala Lumpur, including in

vegetable oil markets in China and the United States.

Friday's slight decline in palm prices, however, was

slightly skewed by the low volumes and the absence of many

participants that were still on leave, he said.

For the second straight week, palm prices were nearly flat

to the previous Friday's finish.

Wang Tao, a Reuters market analyst for commodities

technicals, said palm may test a support at 2,168 ringgit per

tonne, a break below which could lead to a loss to 2,154

ringgit.

Traders are looking to Malaysian palm oil export data due on

Monday for new cues on the market, after recent figures showed

declining shipments from the world's second-largest producer

during what are usually high-output months.

Volumes should pick-up next week with the input of the new

export data and the return of more players to the market,

traders said.

In competing markets, the most-active soybean oil contract

on the Dalian Commodity Exchange was down 0.75 percent,

while Dalian RBD palm oil for September delivery was

down 0.29 percent in afternoon Asian trading.

Brent crude oil prices neared four-month lows on Friday

after data showed a contraction in China's factory sector and

the dollar rose against a basket of currencies.

Palm, soy and crude oil prices at 1011 GMT

Contract Month Last Change Low High Volume

MY PALM OIL AUG5 2181 -9.00 2174 2183 61

MY PALM OIL SEP5 2179 -11.00 2174 2184 3401

MY PALM OIL OCT5 2177 -12.00 2174 2186 11364

CHINA PALM OLEIN JAN6 4860 -34.00 4842 4900 514482

CHINA SOYOIL JAN6 5582 -42.00 5556 5634 512420

CBOT SOY OIL DEC5 31.56 -0.20 31.45 31.78 4720

INDIA PALM OIL JUL5 429.10 -0.20 428.80 430.50 298

INDIA SOYOIL AUG5 572.90 +1.55 569.00 573.50 20970

NYMEX CRUDE SEP5 48.69 +0.24 48.51 48.92 23365

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 = 3.8080 ringgit)

($1 = 6.2095 Chinese yuan renminbi)

($1 = 63.9800 Indian rupees)