Palm | Kelapa Sawit

Unexpected of the late sell off dragged prices to close at negative territory. Initially it opened lower tracking overnight losses in CBOT and NYMEX crude oil. Benchmark may09 slid to hit intra day low at 1830 and looks well supported as again bargain hunting buying and covering interest were seen. Later it hovered between 1840-1860 before the late short covering activities emerged on export talk. Talks that 1-20 Feb export numbers likely to be about the same compare to last month same period prompting aggressive short covering and sent May09 price rebounded to hit intra day high at 1894. However, a late sell down at the close dragged prices back to the negative territory to close at 1860, down RM 15. FCPO price looks quite resilience despite the recent sharp falls in soy oil prices in CBOT. Total daily volume remained heavy with 22,439 contracts changed hands.