Crude palm oil down 0.7% on profit-booking, global cues

Palm oil for delivery in September down by 0.5%

Crude palm oil prices declined by 0.73% to Rs 515.50 per 10 kg in futures trade today on emergence of profit-booking by speculators amid subdued spot demand.

Weak trend in overseas market further fuelled the downtrend in crude palm oil futures.

At the Multi Commodity Exchange, crude palm oil for delivery in October declined by Rs 3.80, or 0.73%, to Rs 515.50 per 10 kg, with a business turnover of 141 lots.

Likewise, the oil for delivery in September shed Rs 2.70, or 0.50%, to Rs 526.80 per 10 kg, with a business turnover of 151 lots.

Traders said besides profit-taking by speculators, subdued demand and a weak overseas trend, on speculation that inventories will climb in top growers like Indonesia and Malaysia as production accelerated second half because of growing cycles, led to decline in crude palm oil prices at futures market.

Meanwhile, the contract for delivery in December lost as much as 0.90% to 2,279 ringgit (USD 718) a tonne on the Bursa Malaysia Derivatives Exchange, the lowest price for the most-active contract since August 14.