CPO falls 3 percent

The benchmark September contracts for CPO in Malaysia Derivatives Exchange dropped as much as RM80 or 3% to RM1989 per ton this morning. 

The current price is far below May 2009 average at RM2833 per ton, and even lower than March 2009 average of RM2015 per ton. CPO futures mainly tracked the downfall of crude oil prices to below US$63 per barrel.

Plantation stocks listed in Singapore Stock Exchange (SGX), mainly with operations in Indonesia and Malaysia, slashed significantly. Indofood Agri Resources, for example, lost 8.7%, while Golden Agri Resources slashed 6.4%, First Resources -4.6%, and Kencana Agri -6%. KL Kepong also lost ground with 1.7% drop.

READ MORE!!!