Crude palm oil falls on profit-booking

A fall in demand at domestic spot markets weighed in on the prices

Crude palm oil prices fell by Rs 6.40 to Rs 577.50 per 10 kg in futures trade today as speculators booked profits at prevailing higher levels, driven by a weakening trend overseas.

Also, fall in demand at domestic spot markets also weighed on the prices.

At the MCX, the May delivery declined by Rs 6.40, or 1.09%, to Rs 577.50 per 10 kg in business turnover of 168 lots.

The June contract traded lower by Rs 6.30, or 1.06%, to Rs 582.50 per 10 kg in 403 lots.

Meanwhile, in Malaysia, the July contract fell as much as 1.60% to 3,175 ringgit ($1,019) a tonne on the Malaysia Derivatives Exchange

 

Market analysts said besides profit-booking by speculators at existing higher levels, a weak trend overseas as Greek leaders failed to form a government increasing speculation Europe's debt crisis will worsen and cut demand for commodities.

They said subdued demand in the spot market also influenced the crude palm oil prices at futures market.