Palm | Kelapa Sawit

CPO futures dully traded in a lower range amid weaker crude oil prices. Benchmark Feb09 hit the intra day low of 1529 after opened RM30 lower at 1550 following a fall in overnight NYMEX crude oil coupled with easier CBOT soy complex. It then traded in a range between 1560-1540 level through out most of the sessions. Some short covering activities appeared in the middle of second session saw CPO prices bounced to intra day high of 1570. Nevertheless, it immediately retreated back into the range due to lack of follow through buying activities. Benchmark Feb09 finally settled RM35 lower at 1545. News that India will import less palm oil due to better winter soybean crop and attractive rival soy oil prices had also provided some selling pressure to the weak market sentiment. Some players were also cautious ahead of FOMC meeting tonight and OPEC meeting tomorrow.