Crude palm oil dips on global cues

Crude palm oil prices fell by Rs 9.40 to Rs 531.30 per 10 kg in futures trading today on sustained selling along with weakening global trend.  

Trading sentiment turned bearish after palm oil tumbled to its lowest in almost three months, in global markets, on expectations that the output in Malaysia, the second-largest producer, may grow this year and on speculations that unrest in Libya and the Middle East may continue.

Meanwhile, palm oil dropped 3.3 per cent to $1,113 a tonne on the Malaysia Derivatives Exchange, the lowest since November 30.   

At the Multi Commodity Exchange, crude palm oil for delivery in May fell by Rs 9.40, or 1.74 per cent, to Rs 531.30 per 10 kg, with an open interest of one lot. 

Similarly, the oil for March contract declined by Rs 6.50, or 1.20 per cent, to Rs 535 per 10 kg, with a business turnover of two lots.  

Traders said sustained selling in line with weakening global trend mainly pulled down the crude palm oil prices.