The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange declined 2.4pc to 2,608 ringgit ($613.65) a tonne when markets closed.
Palm oil for October delivery on the Bursa Malaysia Derivatives Exchange fell 7 ringgit, or 0.26pc, to 2,649 ringgit ($623.59) a tonne by the midday break.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange settled 3.7% higher at 2,614 ringgit ($613.33) per tonne.
"Weather factors have been supporting the market since a few days ago," a Singapore-based trader said.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed up 15 ringgit, or 0.62%, at 2,427 ringgit ($569.32) a tonne, after rising as much as 1.45%.
Malaysian palm oil inventories at end-June fell 6.3% from a month earlier, while production jumped 14.2%,
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed down 3 ringgit, or 0.12%, at 2,404 ringgit ($564.32) a tonne.
Palm had risen 2% to close at a two-week high in the previous session.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange settled down 32 ringgit, or 1.34%, at 2,359 ringgit a tonne.
Lower crude oil makes palm a less attractive option for biodiesel feedstock.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed down 0.13% to 2,359 ringgit ($550.53) a tonne.
Oil fell below $43 a barrel as a resurgence of coronavirus cases raised concerns that fuel demand growth could stall.