• The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slipped 32 ringgit, or 1.4pc, to 2,249 ringgit ($516.42) by the midday break.
• Palm climbed 5.26pc in the previous session to its highest close since April 10, boosted by estimates of a lower output this month in some parts of Malaysia.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slipped 32 ringgit, or 1.4pc, to 2,249 ringgit ($516.42) by the midday break.

Palm climbed 5.26pc in the previous session to its highest close since April 10, boosted by estimates of a lower output this month in some parts of Malaysia.

"Production in East Malaysia, however, is gaining traction and end-stocks for May and June would be a tad above 2.1 million tonnes if demand remains at the current pace," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.

Malaysia's exports for May 1-25 rose between 5.1pc and 9.8pc from the month before, cargo surveyors said.

Oil prices slid for a second straight session as US industry data showed a steep and surprising build-up in crude stockpiles, dampening hopes of a smooth demand recovery as the world begins to ease its way out of coronavirus lockdowns.

Weaker crude makes palm a less attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract rose 0.51pc, while its palm oil contract jumped 1.75pc. Soyoil prices on the Chicago Board of Trade were down 0.83pc.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may rise to 2,342 ringgit per tonne, as it has cleared a resistance at 2,265 ringgit, Reuters technical analyst Wang Tao said.