The benchmark palm oil contract for October delivery  on the Bursa Malaysia Derivatives Exchange was last down 0.3% at 2,064 ringgit ($498.07) a tonne at the close.

It earlier fell to 2,049 ringgit, its lowest since July 26.

Palm oil could test support at 2,038 ringgit a tonne, a break below which could cause a fall to 1,991 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

The market had tracked the Dalian lower, one Kuala Lumpur-based futures trader said, adding that overnight US soyoil weakness also pressured prices.

CBOT soyoil futures had slumped nearly 2% on Wednesday but were up 0.5% by 1104 GMT on Thursday.

Grains prices in the US registered sharp falls on Wednesday as analysts said that US crop weather was not threatening. They steadied on Thursday, rebounding from a seven-week low in the previous session, though forecasts for more benign weather limited gains.

In related edible oils, the September soyoil contract on the Dalian exchange lost 0.8% and the Dalian September palm oil contract eased by 0.3%.

Palm oil prices are affected by movements in related oils that compete in the global vegetable oils market.