Crude palm oil declines 0.94% on profit-booking

Subdued demand, weak overseas trend influence prices

Crude palm oil prices declined by Rs 4.10 to Rs 431 per 10 kg in futures trade today as participants booked profits amid a weak trend overseas.

Subdued demand in the spot markets put pressure on the prices.

At the Multi Commodity Exchange, crude palm oil for delivery in October declined by Rs 4.10, or 0.94%, to Rs 431 per 10 kg, with a business turnover of 280 lots.

The November contract shed Rs 4, or 0.90%, to Rs 438.80 per 10 kg, with a business turnover of 579 lots.

Globally, in Malaysia, the contract for January declined 1.8% to 2,530 ringgit ($830) a tonne on the Malaysia Derivatives Exchange.

 

Traders said besides profit-taking by speculators, a weak trend in the global markets and subdued demand in the domestic markets led to the decline in crude palm oil prices at futures market.