Palm | Kelapa Sawit

Malaysia CPO futures ended in a negative territory after a volatile trading day. Benchmark Jan09 open RM76 lower at 1489, as overnight crude oil futures hit a fresh 16-month low at $66.75, after government data showed higher than expected domestic stocks level, and also the limit down in CBOT soy oil. The price then bounced back and hit the morning high of 1539, but failed in its attempt to cover yesterday’s left over gap. Prices were immediately hammered down to intra day low at 1475, following Dalian soy oil hitting its 5% limit down again for the second consecutive day. But after lunch break, players began to speculate that oil producer countries would decide to cut their oil output during tomorrow’s meeting, hence pushed up the price to hit intra day high at 1586. Nevertheless, the “bull” is not yet strong enough to change the sentiment of fear and uncertainty in the market. Benchmark Jan09 retreated from the high caused by some long liquidation activities and settled at 1550. Daily volume increased slightly, with 15,785 contracts changed hands.