Malaysian palm oil futures for October delivery fell 39 ringgit, or 0.83%, to 4,683 ringgit per metric ton on Monday.
The decline followed a session where the contract had reached a 15-week high, marking a sharp reversal in momentum for the key tropical oil benchmark.
The pullback was driven by weakness across rival edible oils and a retreat in crude oil prices.
Traders are closely watching the correlation between energy costs and vegetable oil demand, as lower crude prices often signal softer biofuel demand expectations.
The drop in Dalian-based rival oils further pressured palm oil, highlighting the interconnected nature of global edible-oil markets.
This session marks a continuation of recent volatility, with palm oil having opened lower on Friday and declining for a second consecutive session on Wednesday.