Palm Oil drops further

Crude Palm Oil (CPO) futures contracts in Malaysia Derivatives Exchange lost ground this morning and touched RM2101 per ton for the benchmark September delivery. 

CPO futures contracts closed lower at RM2129 per ton on Monday to tracking the downfall of crude oil prices. This morning's price is 25% below the May average of RM2833 per ton. CPO futures have actually recovered sharply this year. It surged 82% from the bottom average of RM1555 per ton in December to RM2833 in May, but since then dropped to RM2544 last month, and below RM2200 this month, so far.

In Indonesia, physical auction of 10,500 tons of CPO by KPB PTPN on Monday closed in the price range of Rp6215 and Rp6547 per Kg. Astra Agro's CPO auction closed in the Rp6265-6555 per Kg on Monday, dropped significantly from Rp8755-8855 per Kg in early May 2009. 

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