Crude oil prices rose as vaccine rollouts bolstered the economic outlook and US fuel stocks fell sharply, although gains were capped by a surge in crude oil inventories after last month's Texas storm.
The USDA only minimally trimmed its US end-of-season stocks outlook and raised its export forecast by less than many traders had anticipated following record-large sales to China.
Corn also benefited from export sales, as the USDA reported private sales of 336,500 tonnes of the US corn to unknown destinations for shipment in the 2020/21 season.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange slid 42 ringgit, or 1.25%, to 3,308 ringgit ($817.60) during early trade.
On the daily chart, the drop triggered by the key resistance at 3,856 ringgit looks so decent that it suggests a completion the wave C from 2,691 ringgit.
Recent rains have also helped improve the state of the country's crops ahead of the 2020/2021 harvest, a welcome relief for farmers following a prolonged drought during the southern hemisphere winter.