Crude palm oil futures fall on global cues

Crude palm oil prices fell by Rs 2.40 to Rs 488 per 10 kg in futures trade today on sluggish demand in the spot market amid a weakening trend overseas.

Trading sentiments turned bearish after palm oil dropped in global markets on speculations that favourable weather in the US may boost soybean yields, lifting global supplies of vegetable oils for use in food and fuel.

At the Multi Commodity Exchange, crude palm oil for August delivery declined by Rs 2.40, or 0.49%, to Rs 488 per 10 kg, with a business turnover of 26 lots.

Similarly, the oil for September delivery shed Rs 2.30, or 0.47%, to Rs 487.80 per 10 kg, with an open interest of 16 lots. 

Market experts said apart from a weakening global trend, sluggish spot market demand mainly led to fall in crude oil prices at futures trade here.

Meanwhile, palm oil futures for the October-delivery contract fell 1% to $1,044 a tonne on the Malaysia Derivatives Exchange.