Palm | Kelapa Sawit

Palm oil futures recovered from its earlier losses to edge higher on strong external markets. Initially, market sentiment was weak in the morning session as Benchmark Dec09 fell to intra day low of 2013 after opened RM4 higher at 2046. However, as Asian time NYMEX crude oil and eCBOT soy oil began to improve in second session saw CPO prices followed suit. Benchmark Dec09 started to climb steadily on some bargain hunting covering activities. Prices surged further in late trading as no sign of easing off and supported well. This prompted aggressive intra day short covering and push prices to settle RM20 higher at 2062 after hitting intra day high at 2068. The positive external markets had lent strong support to BMD. Both crude oil and soy oil were seen to trade 1% higher during late Asian time trading. Daily volume was more than doubled the usual level with a total of 26,782 contracts traded in the market.