Palm oil down 0.7% on weak overseas cues

Traders said offloading of positions by participants due to a weak trend at spot markets following comfortable stocks position led to a fall in crude palm oil prices

Crude palm oil prices fell by 0.74% to Rs 530.10 per kg in futures trade today after speculators offloaded their holding driven by weak trend in domestic as well as overseas markets.

At the Multi Commodity Exchange, crude palm oil for delivery in January fell by Rs 4, or 0.74%, to Rs 530.10 per 10 kg, with trading volume of 3 lots.

The prices for delivery in February declined by Rs 3.90, or 0.72%, to Rs 535.90 per 10 kg, with a trading volume of 55 lots.

Traders said offloading of positions by participants due to a weak trend at spot markets following comfortable stocks position mainly led to a fall in crude palm oil futures prices.

They said palm oil dropped to the lowest level in almost two weeks on concern that exports from Malaysia, the world's second-largest producer, may fall on slowing demand amid increasing supplies of alternate oils further influenced the market sentiment.

The palm oil fell as much as 1.30% to $756 a metric tonne on the Malaysia Derivatives Exchange.