Crude palm oil remains weak on profit-booking

Crude palm oil prices declined by Rs 3.20 to Rs 500.40 per 10 kg in the futures trade today on emergence of profit-booking by speculators, driven by sluggish demand in the physical market and a weak global trend.

Trading sentiment remained bearish on weakening trend in the domestic markets and in Malaysia on slowing demand for the commodity among biofuel producers.

October crude palm oil fell by Rs 3.20, or 0.63% to Rs 500.40 per 10 kg with a business turnover of 141 lots.

The September contract eased by Rs 3.10, or 0.61% to Rs 500.40 per 10 kg in 67 lots,while November month contract moved down by Rs 2.50, or 0.49% to Rs 500.50 per 10 kg in 24 lots.

Traders said beside profit-taking by speculators, fall in demand against adequate stocks in physical markets mainly led to fall in crude palm oil prices at futures market.

They said a weakening trend in overseas markets further fuelled the down-trend.

In Malaysia, the the oil declined 1.8% to 955 dollar per metric ton, the lowest since September 14 and lost 20% this year.