Palm | Kelapa Sawit

CPO futures ended lower on profit taking. Benchmark Apr09 opened RM29 lower at 1940 following the overnight losses of CBOT soy oil and NYMEX crude oil. It later climbed to intra day high at 1967 before lunch time but then fell again to the intra day low of 1916 when second session resumed, tracking the sudden fall of Dalian palm as it hit limit down prices. Buy on rumors sell on facts on MPOB Jan09 supply and demand data which released during lunch break also provided some selling pressure. However, bargain hunting and short covering had cushion the slide. Benchmark Apr09 bounced back from the low and continue to trade in that range before it finally settled RM44 lower at 1925. Meanwhile, a Hamburg-based analyst from Oil World had stated that global palm oil prices could improve in the coming weeks as end stock level were showing signs of declining.