The loss moves the Balers to 9-2 and snaps their eight-game winning streak heading into a 11-day bye.
The Chieftains got off to a fast start, taking a 44-14 lead at the half. The Balers were led by 13 points from Jacob Tonascia and eight points from Robert Henderson. Hyram Miskin finished with five points in the loss.
Michael Breen and Tonascia were both named to the all-tournament team for their play. Palma’s Noah Allen was named the tournament’s Most Valuable Player.
The Balers return to the court on Jan. 3 against Watsonville.