Palm | Kelapa Sawit

CPO futures recouped its previous losses and rallied strongly to end above 1900 level. Benchmark May09 was well supported and had been hovering between the tight range of 1870-1860 level through out the morning session. It hit intra day low at 1856 but immediately bounced back again and closed at 1864 before lunchtime. News released by Reuters poll stating that palm oil stocks may fall 8.6% to 1.67 million tones (16 month low) had succeeded in gaining back the confidence of traders as they previously were in fear of facing higher end stock level. Furthermore, the bullish sentiment in external market also helped to boost more buying activities in CPO market. Both eCBOT soy oil and Dalian palm had rose steadily, while regional equity market also recovered from yesterday’s heavy losses. Benchmark May09 started to gain momentum after second session resumed and rallied strongly until it finally settled RM47 higher at 1902 after it hit intra day high of 1910.