Palm | Kelapa Sawit

The “bull” returned again as crude palm oil futures tested the 2200 mark. The weak closing of overnight NYMEX crude oil and CBOT soy oil saw Benchmark Jun09 slid to intra day low of 2121 after opened RM15 lower at 2130. However, it then started to bounced back strongly and closed at 2155 before morning break. The strong rally in Dalian palm in the afternoon session led Benchmark Jun09 to immediately gap up when second session resumed trading. Prices climbed to intra day high of 2201 but then slowly eased off again until it finally settled RM35 higher at 2180. Despite the comments made by Commodities Minister Mr Peter Chin, who stated that Malaysia CPO stocks stood at 1.5 million tonnes as of end-March, traders were nevertheless more optimistic on the upcoming MPOB supply & demand data which is due to be released on Friday. They were expecting the stock level to fall to around 1.4 million tonnes. Market sentiment had changed to steady in the afternoon session, Underlying cash market steady as well.