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Crude palm oil tumbles 4% on global cues

Hopes that inventories in Indonesia and Malaysia will increase contribute to downtrend

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 5:29 AM IST

Tracking a weak global trend, crude palm oil hit lower circuit by losing 4% to Rs 461 per 10 kg in futures trade today.

At the Multi Commodity Exchange, crude oil for delivery in September fell by Rs 19.20, or 4%, to Rs 461 per 10 kg, with a business turnover of 296 lots.

The October contract plunged by Rs 19.10, or 3.99%, to Rs 459.30 per 10 kg, with a trading volume of 615 lots.

Marketmen said offloading of positions by speculators, driven by a weakening global trend on hopes that inventories in Indonesia and Malaysia, the largest producers, will increase as economic slowdown curbs demand led to the steep fall in crude palm oil prices at futures trade here.

Meanwhile, palm oil futures for December delivery dropped by 7.70% to $840 a tonne, the biggest intra-day decline since March 2009 on the Malaysia Derivatives Exchange.

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First Published: Sep 24 2012 | 2:29 PM IST

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