Palm | Kelapa Sawit

CPO futures ended in negative territory with a fresh low despite a supportive official MPOB’s August demand and supply data. Benchmark Nov 08 initially opened RM 6 higher at 2360 and hit the intra-day high at 2379 as overnight CBOT was reflected in yesterday e-CBOT traded in Asian time zone. However, lower than market expectation of 1-10 Sept export figures released by private cargo surveyors had kept market under pressure. Selling interest was getting aggressive following the comments from industry analyst Dorab Mistry at the conference in Singapore. Mistry comments that Malaysian CPO futures are likely to ease to around 2,200 ringgit per tonne as surging production and weak demand weighed on the market. Nov 08 then sank to record low at 2319 before it rebound and recover to settle at 2352, down RM 2 by midday break. Market momentum improved in the afternoon session following the released of official MPOB data and it was view as supportive to the market with August end stock down 6.5% at 1.848 million tonnes, from a revised of 1.977 million tonne in July. Nov 08 surged to the high at 2397. However, lack of follow through buying support coupled with intra-day liquidation saw prices eased off to settle at 2329, down RM 25 with total volume stood at 13,242 contracts changed hands.