Palm | Kelapa Sawit

CPO futures fell sharply lower on spill over from eCBOT soy oil collapse due to swine flu spread concern. Benchmark July09 immediately gapped down RM85 lower to open at 2500 and thereafter trading in a range between 2514-2471 for the rest of the day before it finally settled RM104 lower at 2481. Global vege oil market were hit hard today as speculation that the outbreak of swine flu in Mexico that may have spread overseas, could jeopardize government effort to end global recession and reduce demand prospects for livestock feed. Dalian palm dropped to daily limit of 5% while eCBOT soy oil also tumbled more than 4%. Generally, the overall market was still supportive as traders are confident on palm oil and believe that end stocks still low and tight. Daily volume remained heavy with total 20,253 contracts changed hands.