Crude palm oil softens on weak demand, global cues

May, June contracts shed 0.17% and 0.33% respectively, as stocks pile up in spot market

Crude palm oil prices softened by Rs 1.50 to Rs 454.50 per 10 kg in futures trading today owing to slackened demand in the spot market against adequate stocks position.

Weak trend in the overseas market further fuelled the downtrend in crude palm oil.

At the Multi Commodity Exchange, crude palm oil for delivery in the June softened by Rs 1.50, or 0.33 per cent, to Rs 454.50 per 10 kg in business turnover of 17 lots.

The May contract traded lower by 80 paise, or 0.17 per cent, to Rs 456.50 per 10 kg in 74 lots.

Analysts said slackened demand in the spot market against adequate stocks position amid a weak global trend kept pressure on crude palm oil prices at futures trade.

Meanwhile, palm oil for the July delivery contract fell 0.5 per cent to USD 754 a metric tonne on the Malaysia Derivatives.