Crude palm oil down 0.5% on weak overseas cues

Crude palm oil prices for the September contract dropped 1.10%

Continuing its slide for the second straight day, crude palm oil prices fell by Rs 2.90 to Rs 502.20 per 10 kg in futures trade today as traders engaged in offloading positions, taking weak cues from overseas market.

At the Multi Commodity Exchange, crude palm oil prices for delivery in July declined by Rs 2.90, or 0.57%, to Rs 502.20 per 10 kg, with a business turnover of 287 lots.

Similarly, crude palm oil prices for delivery in August fell by Rs 2.80, or 0.55%, to Rs 503.30 per 10 kg, with a business turnover of 149 lots.

Meanwhile, palm oil prices for the September contract dropped 1.10% to 2,345 ringgit ($736) a tonne on the Malaysia Derivatives Exchange.

Analysts said increased offloading of positions by speculators, after palm oil dropped on speculation that the pace of production in Malaysia, the world's second-largest producer, may increase this month as the high-output cycle begins.