Palm | Kelapa Sawit

CPO futures ended lower on weak market sentiment. Benchmark Mar09 hit the intra day low of 1539 after opened RM21 lower at 1559 following overnight easier CBOT soy oil while crude oil fell to hit fresh 4 year low at $39.88. However, CPO prices were well supported and thereafter hovered in a tight range of 1555-1545 for the remaining morning session. Some short covering activities began to emerge when afternoon session resumes and sent Benchmark Mar09 to climb back gradually. It hit the intra day high of 1575 before it was finally sold down again to settle RM35 lower at 1545. Market tone was still in a cautious mood and remained in range trading. Meanwhile CPO prices seem to be experiencing some slight decoupling from the effect of crude oil movement.