Palm | Kelapa Sawit

Palm oil futures rallied strongly on pre-weekend covering. Benchmark May09 had been well supported in the early trade and hovered between 1905-1895 level through out the morning session after it opened almost unchanged at 1902. As Monday market will be closed for Muslim religious holiday, short covering activities began to emerge ahead of long weekend saw CPO prices started to gain momentum in the afternoon session. Benchmark May09 rallied strongly to the high of 1955 before it finally settled RM34 higher at 1940. While traders were waiting for some fresh news from the upcoming Price Outlook Conference on next week, the release of statements made by Thomas Mielke had also helped to boost the buying sentiment in CPO market. Mr. Mielke had said that Asian palm output growth will be slowed and German power producer were seen buying more palm oil for electricity generation.