MUMBAI (Commodity Online):Crude palm oil futures dropped Thursday as traders booked profits tracking weak overseas markets.
At MCX Crude Palm Oil December contract is trading at Rs.515.80 per Kg,a decline of 0.79 per cent on 15:30 IST against the previous close.
In the morning session the contract traded at a range of Rs.514.30-517 per Kg. Open interest
of the contract is 4447 lots and volume traded is 2034 lots for the time being.
News that China has scrapped orders for some 300,000 tonnes of refined palm oil on the back of over-booked cargoes and lower domestic prices did little to lift the futures market.
Fundamentals can turn more bullish with Malaysian Meteorological Department issuing orange stage warning that heavy rains could persist till Thursday and trigger floods in parts of Pahang -- key oil palm growing area that accounts for 15 percent of production.
Heavy rains tend to reduce harvesting rounds in oil palm estates and floods will complicate the transport of the edible oil to mills and refineries.
