The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives (BMD) Exchange lost 0.61% to 4,210 ringgit ($890.82) per metric ton by midday. Earlier in the session, the contract rose as much as 0.7%
"Bursa Malaysia CPO futures opened higher, but quickly seen easing on profit-taking as most of the bullish factors and news are already priced in and market is now lacking a fresh momentum to hold on the recent gains," Anil Kumar said.
Weakness in Chicago soyoil futures and the South American soyoil prices has cautioned palm oil buyers, he added, as the palm oils premium over the competition has widened.
Dalian's palm oil contract was down 0.42%, while its soyoil contract fell 0.43%. Soyoil prices on the Chicago Board of Trade edged 0.1% higher.
Palm oil takes directions from the price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia maintained its export tax for crude palm oil at 8% for April and raised its reference price, according to Malaysian Palm Oil Board.