Palm | Kelapa Sawit

16-month low end stock triggered short covering to trade above 2000 level. Market was in the bullish mood in the early part of the afternoon session after the released of MPOB official Feb supply & demand data which prompted “shortish” covering activities and speculative buying sent Benchmark May09 rallied to hit intra day high at 2026. However, lack of follow through buying coupled with profit taking activities saw prices eased off and slides down to intra day low of 1976 before it settled RM15 lower at 1980. Earlier session was rather cautious and hovering between the narrow range of 2003-1985 level ahead of the release of MPOB data, and also 3 key speakers will only deliver their papers tomorrow at the 2009 Price Outlook Conference in Kuala Lumpur.