Crude palm oil prices tumbled 4 per cent to hit lower circuit at Rs 407.20 per 10 kg in futures trade today after participants off-loaded their positions amid a weak trend overseas.
Besides, subdued demand at spot markets also put pressure.
The crude palm oil for delivery in October fell sharply by Rs 17, or 4.01 per cent, to hit lower circuit at Rs 407.20 per 10 kg at the Multi Commodity Exchange, with a business turnover of 93 lots.
The oil to be delivered in November fell by a similar margin to hit a lower circuit at Rs 409.10 per 10 kg, with a business volume of 291 lots.
Trading sentiment remained bearish largely in line with a weak trend overseas after palm oil futures in Malaysia traded lower as a global economic slowdown hurt demand for the oil and an increase in production in Indonesia and Malaysia, the
world's largest producers, marketmen said.
Meanwhile, the December-delivery contract lost 8.5 per cent to 2,255 ringgit (USD 739) a tonne, the lowest close for the most-active month on the Malaysia Derivatives Exchange since November 2009. Futures have plunged 25 per cent in five weeks.
