"We saw more activity this morning. People are coming out to trade after keeping at the sidelines in the last two days," said a trader. A total of 743 lots were traded at midday on Wednesday against only 45 at midday on Tuesday

"The cash market is seen softening as demand has slowed down," the trader added. "Prices also fell on lower soy oil last night."

By the close of the morning session, third month December futures contract lost 30 ringgit to 2,275 ringgit ($598.68) a tonne.

KL midday palm oil futures drop with cash. "The political unrest was just a temporarily thing. Now people are coming back to trade as it has no long-term impact on the industry," said the trader.

Former deputy Prime Minister Anwar Ibrahim, who was sacked earlier this month, was being held under the Internal Security Act (ISA), which provides for detention without charge.

Physical prices were quoted much lower due to reduced demand, traders said.

Sept (South and central) crude palm oil was offered at 2,380 ringgit against bids at 2,360. Oct (South and central) saw offers at 2,370 against bids at 2,350.

KL midday palm oil falls on fresh sellings.

In refined products, Oct RBD palm oil was offered at $660, Nov/Dec at $650 and Jan/Feb/Mch at $642.50.

Oct RBD palm olein saw offers at $720, Nov/Dec at $682.50and Jan/Feb/Mar at $667.50.

Oct/Nov/Dec RBD palm stearin was offered at $480.

($1=3.80 Ringgit)