Palm | Kelapa Sawit

Palm oil futures tumbled sharply lower with triple digit losses on weak external market. Benchmark Aug09 initially hit intra day high of 2626 after opened RM7 higher at 2609, following the strong close in overnight NYMEX crude oil. However, lack of follow through buying activities led prices easing off and closed at 2570 before morning break. Spill over from the further weakening of external markets saw Benchmark Aug09 continued to fall for the remaining session. it hit intra day low of 2480 before settled RM103 lower at 2499. eCBOT soy oil drop more than 1% while Dalian palm ended with almost 100 point losses. Asian time NYMEX crude oil also surrendered most of its previous session’s gains at more than 2% lower. Market sentiment had turned weak due to lack of fresh friendly factor. Dorab Mistry’s paper during early of the week was more or less ignored and discounted by players, as players believed that most of his comments had factored in already. Moreover, technically also grossly overbought and needed a good correction.