The benchmark July crude palm oil contract on Bursa Malaysia Derivatives rose 0.2 percent to 3,274 Malaysian ringgit ($1,098) per tonne. It earlier hit a low at 3,250.
Overall traded volume was thin at 2,817 lots of 25 tonnes each, compared to 12,155 lots on Wednesday.
Palm oil has lost about 13.5 percent so far this year, down from a peak at 3,967 ringgit, on rising stocks and still weak demand. It also fell to a six-month low last week along with a broad sell-off in commodities as traders initially fretted over the state of the US economy and cut risk taking.
Prices came under renewed downward pressure earlier on Thursday, after commodities slumped again as news of weak Chinese industrial growth, and rising US gasoline stocks triggered a second major sell-off.
"If you look at supply and demand balance due to weather patterns -- supply is still a little bit tight," said Chris de Lavigne, palm oil analyst at Frost & Sullivan. "Prices have come off their highs (but) probably not to the same extent as metals and oils.
"(China growth) is holding it back prices a little bit, but the impact is not huge even though it is a large user -- they still have to eat," he added. "If the rest of commodities drift lower, it will eventually drag us down a little bit lower."
Late on Wednesday, the US Department of Agriculture May supply and demand report showed that farmers around the world will harvest sharply larger grain crops this year, adding that a drop in US exports would also help replenish dangerously thin grain stockpiles.
"This was historical data but we need to look into weeks ahead, and how weather is going to affect yields," said a palm oil trader.
"I see a (palm oil) range between 3,250 and 3,300 but volume is low," he added. "Demand is going to come in from India China in the coming months."
But the US winter wheat crop will be the smallest in five years and larger biodiesel use would eat into soybean supplies next year, a scenario that will support palm oil.
The most active January 2012 soyoil on China's Dalian Commodity Exchange was little-changed.
"Soyoil prices will be pressured further with higher imports from Argentina," said an oil analyst in China's major soybean planting province of Heilongjiang. "Prices might continue to fall in short term."
Earlier this week, data showed that Malaysian palm oil exports appear to be recovering in the first ten days of May.
The higher exports come at a time when stocks in Malaysia, the world's No.2 producer, rose at a slower than expected pace that may eventually support prices.
Investors are also keeping a close watch on developments in Indonesia, the world's top palm oil producer, as it looks to make changes to its export tax.