Palm oil has lost about 18 percent so far this year thanks to a stock build and financial markets turning volatile over the grim economic outlook.

Many markets are looking for some new cues from US Federal Reserve Chairman Ben Bernanke's speech on Friday and any failure to offer a clear hint of further monetary easing may trigger a fresh sell-off.

"Ben Bernanke is more important than export data at this moment," said a trader with a foreign commodities brokerage.

"If he does not give clear guidance on the US economy, then there will be a knee jerk reaction that may overshadow the palm oil market scenario that is trying to turn bullish."

By the midday close, benchmark November crude palm oil contract on Bursa Malaysia Derivatives fell 0.2 percent to 3,030 ringgit ($1,017.97) a tonne.

Overall traded volume was light at 3,237 lots of 25 tonnes each, compared to the usual 12,500 lots, as traders evened out positions ahead of a long holiday next week.

Exports posted solid growth with cargo surveyor Intertek Testing Services reporting Aug. 1-25 palm oil shipments rose 6.3 percent to 1.36 million tonnes from a month ago.

Another surveyor, Societe Generale de Surveillance, will issue its estimates later in the day.

Higher exports will likely to bring stocks well below 2 million tonnes as production falters with mostly Muslim estate workers taking extended leave for Eid celebrations in late August.

Grains and other vegetable oil prices came under pressure on expectations of ample supply and caution ahead of Bernanke's speech at Jackson Hole.

US soyoil for September delivery slipped 0.5 percent during Asian hours, and the most active May 2012 soyoil contract on China's Dalian Commodity Exchange inched 0.4 percent lower.

Copyright Reuters, 2011