Crude palm oil futures prices hits lower circuit,plunge 4 pc

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.