Palm | Kelapa Sawit

Palm oil futures down sharply lower on bearish forecast. Benchmark Dec09 immediately gap down RM56 to open at 2130 and under pressure through out most of the sessions. It broke below 2100 level after second session resumed and hit intra day low of 2082 before some bargain hunters came in to provide some support. Prices then hovered between 2115-2095 and settled RM83 lower at 2103. The bearish statement made by a well-known industry analyst Mr Dorab Mistry at the Global Vege Oil Conference in India over the weekend, had caused some selling pressure to BMD. Mr Mistry stated that palm oil prices need to drop to RM1900 for demand to rebound and keep stocks under control. Meanwhile, weaker external markets had also enhanced the selling sentiment as both eCBOT soy oil and Dalian palm fell more than 1% lower.