Palm | Kelapa Sawit

Critical support level of 2100 got defeated and saw palm oil futures to crack recent low of 2085. Benchmark Sep09 had been struggling to defend the 2100 level through out the morning session as prices kept bouncing back whenever it dropped below it. However, market sentiment became weaker in the afternoon session as more speculative selling and stop loss selling turned more aggressive and continued to depress the price. Benchmark Sep09 hit the new 3-month low at 2059 and settled RM60 lower at 2069. Daily volume almost doubled to 22,484 contracts changed hands. Market sentiment remained bearish due to lack of friendly news.