Palm | Kelapa Sawit

Several European banks agreed to cut interest rate and talks that Sept08 production expected to be lower had prompted late covering interest and sent CPO futures to end sharply higher across the board. Market was trading in positive territory throughout the day except some sell off in the early part of the afternoon session due to talks that 1-10 Oct export likely to be lower by 10% at same period of Sept08. This leads benchmark Dec08 dips to 1810 but bargain hunter managed to provide some support and sent prices rebounding to hover between 1840 to 1860. Aggressive covering activities emerge in late trading and push prices to settle at intra-day high at 1890, up RM115 from yesterday's closed.