Crude palm oil extend losses on weak global cues

Crude palm oil prices fell by another 1.06 per cent to Rs 630.60 per 10 kg in futures trade today as speculators engaged in cutting down their bets, tracking a weak trend overseas and low demand at the domestic spot markets.

Sentiments dampened on weak global cues after Malaysian palm oil futures saw their sharpest decline in a week at the close of trade yesterday due to weaker export demand and a fall in crude oil prices.

Globally, the benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 1.2 per cent at 2,307 ringgit (USD 577.33) per tonne.

Meanwhile, India last week raised import taxes on crude and refined soyoil, sunflower oil and canola oil to the highest level in over a decade in a bid to support local farmers.

At the Multi Commodity Exchange, crude palm oil for delivery in July declined by Rs 6.80, or 1.06 per cent, to Rs 630.60 per 10 kg in a business turnover of 296 lots.

On similar lines, the oil for delivery in the current month contract fell by Rs 6.20, or 0.97 per cent, at Rs 633.30 per 10 kg in 115 lots.

Analysts said off-loading of positions by traders owing to slackened demand against sufficient stocks position kept crude palm oil prices down.