19/09/2011 (Commodity Online) - Palm oil futures in India fell on Friday on profit booking by the speculators due to sluggish domestic demand.

At MCX CPO October contract is trading at Rs.500.80 per Kg, fell by 0.22% on 16.30 IST against the previous close.

In the early sessions the contract traded at a range of Rs.499-501.30 per Kg. Open interest of the contract is 5883 lots volume traded is 2221 lots for the time being.

Adding to the downward pressure, the U.S. Department of Agriculture raised its U.S. crop production outlook by 1% on Monday in its monthly report. Palm oil may be rangebound for the rest of the week, unless export demand from major consumers India and China picks up in the second half this month.

Malaysia's palm oil exports for the rest of 2011 will be flat at best with a negative outlook for next year as refiners are at a price disadvantage after No.1 producer Indonesia slashed refined palm olein export taxes