Crude palm oil declines on profit-booking

Crude palm oil futures prices today declined by Rs 5.40 to Rs 414.50 per 10 kg as speculators booked profits due to subdued spot demand.

A weakening global trend after the Malaysian government announced a cut the crude palm oil export taxes and discontinue a tax free shipment quota from January 1.

At the Multi Commodity Exchange, the the November contract for crude palm oil declined by Rs 5.40, or 1.28% to Rs 414.50 per 10 kg in a business turnover of 585 lots.

The October contract shed Rs 5.20, or 1.25% to Rs 410.30 per 10 kg in 365 lots.

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

They said a weak trend in the Malaysian Derivative Exchange, the major global supplier of the oil, also influenced the market sentiment.