Palm | Kelapa Sawit

Palm oil futures bounced back from yesterday’s losses on weather concern. Benchmark July09 initially opened RM20 higher at 2680, tracking the early gains in Dalian palm. Traders had began to worry on supply constraints again after the release of news that palm oil production will continue to struggle in the next few months and may not even hit strong double digit peaks this years with the current hot and dry weather hurts yields. The subsequent rose of Dalian palm and eCBOT soy oil during Asian time trading had further enhanced some buying support in CPO market. Benchmark July09 finally settled RM65 higher at 2725 after it hit intra day high of 2736 in late trading.