Low demand weigh on crude palm oil futures

Crude palm oil prices declined by 0.55 per cent to Rs 505.60 per 10 kg in futures trade today as participants cut down positions, driven by a fall in demand in the spot market against adequate stocks.

At the Multi Commodity Exchange, crude palm oil for delivery in far-month July fell by Rs 2.80, or 0.55 per cent to Rs 505.60 per 10 kg in business turnover of 58 lots.

Likewise, the oil for delivery in June contracts traded lower by Rs 2.70, or 0.53 per cent to Rs 507.30 per 10 kg in 27 lots.

Analysts said offloading of positions by traders due to muted demand in the spot market against adequate stocks position on higher supplies from producing regions, mainly influenced crude palm oil prices at futures trade.