Crude palm oil falls 0.7% on profit-booking

Weak overseas trend influences prices

Crude palm oil futures prices today fell by Rs 3.10 to Rs 431.50 per 10 kg as speculators booked profits at existing higher levels due to subdued demand in the spot markets.

Weak trend in overseas markets influenced the trading sentiment.

At the Multi Commodity Exchange, crude palm oil for delivery in November declined by Rs 3.10, or 0.71%, to Rs 431.50 per 10 kg in a business turnover of 653 lots.

The October contract shed Rs 3, or 0.70%, to Rs 427 per 10 kg in 468 lots.

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

 

Weak global trend on speculation that record stockpiles are set to expand further as output remains elevated in Malaysia, the world's second-largest producer, had a negative impact, they said.

Meanwhile, palm oil for for December delivery dropped 1.5% to $812 a tonne on the Malaysia Derivatives Exchange.