Palm | Kelapa Sawit

Palm oil futures extending its losses to close sharply lower amid weakening crude oil in Asian time zone. Morning session prices were rather mix to easier, spilled over from yesterday’s weak closing and also overnight weak crude oil prices. Nevetheless, selling pressure emerged in the afternoon session following a negative comment by James Fry during his paper in Bali, palm oil conference. He expecting palm prices to fall below USD400 by next April, also expects crude oil prices to dip further to USD35. Whereas, Dorab Mistry expected prices to hover around 1500 in next 8-10 weeks due to palm output growth seen slowing from December due to change in biological cycle. Selling activities emerged in late trading and slam prices down to 1457 before it settled RM74 lower at 1462. Market sentiment remains weak.