Trader's comment:CPO futures prices reversed from yesterday losses to end triple digit higher

CPO futures prices reversed from yesterday losses to end triple digit higher. Gains in overnight NYMEX crude oil coupled with retreat in USD/MYR had helped to underpin the market sentiment. Support also stemmed from stronger China’s Dalian commodities market and e-CBOT in Asian trading zone. Benchmark Nov 08 hit the intra-day low at 2467 after the opening bell at 2495, up RM 59. It then recovered to trigger 2526 before midday closing in positive territory at 2520. 1-20^th August export data released by private cargo surveyors were within market expectation. ITS pegged at 904,645 mt, up 8.5% whereas SGS put at 856,806 mt, up 7.8% compare the same period of last month. Short covering interest saw Nov 08 inching up higher in afternoon session following comments from Thomas Mielke editor-in-chief of Oil World, a Hamburg-based vegetable oils publication. He comments CPO prices are undervalued and not in line with fundamentals, and should recover in medium term. Nov 08 then rose to the high at 2594 before settling at 2591, up RM 155 with total volume stood at 13,040 contracts changed hands.