Palm | Kelapa Sawit

Palm oil futures posted 3 digit losses to tumble more than 5% lower on weaker external market. Benchmark Sep09 immediately gapped down RM39 to open at 2246 following overnight NYMEX crude oil down more than 2%. It merely hit the intra day high of 2265, unable to cover fully on its previous session left over gap and there after started to fell through out the rest of the day until it finally ended RM128 lower at 2157. The bearish external markets had weighed on the already fundamentally weak CPO market as palm oil production is expected to be much higher in the second half of the year. Asian time NYMEX crude oil extended its overnight sharp losses to fall more than $1 trading below $69 and led Dalian palm and eCBOT soy oil to follow suit, as both fell more than 1%. The results of 1-20 June export data released by both private cargo surveyors were within the market expectation after ITS & SGS reported a decline of 3.4% and 4.1% respectively.