Palm | Kelapa Sawit

Palm oil futures ended marginally higher after a choppy trading day. The battle between sellers who were taking the opportunity to book their previous day’s profit and buyers who were still willing to jump on board expecting the bullish trend to continue, saw Benchmark Jun09 to hover within a range of 2185-2125 level through out the day before it finally settled RM6 higher at 2165. Generally, the overall market was still fundamentally sound and technically supportive. Fundamentally, with the expectation of flat March09 production reasonable export figures reported by private cargo surveyors, traders were now expecting palm oil March09 inventories to reduce to around 1.4 million tones. Technically, the ability of CPO price to maintain above 2100 level today after yesterday’s rally may further enhanced the strength of the near term bull in CPO market.