Palm | Kelapa Sawit

Weaker external markets continue to suppress BMD saw prices tumbled sharply lower. Benchmark Sep09 initially opened unchanged at 2259 but was under pressure all the way though out the morning session and closed below 2200 level before morning break. The further weakening of eCBOT soy oil and Dalian palm coupled with the comments made by Malaysia’s No2 planter who said that June palm oil stock likely to see 1.5 million tones, added more selling pressure to the already weak market. Speculative selling and long liquidation continue to hammer down FCPO prices and ended RM84 lower at 2175 after hitting intra day low at 2169. Market sentiment just weak as some players are concern over rising production and building up inventory.