Trader's Comment: CPO futures ended mix and steady

CPO futures ended mix to steady after a rather choppy trading day. Initially, benchmark Dec08 opened RM25 higher at 2330 but the gains were short-live due to lack of follow through buying. Then, it slides to hit intra-day low at 2251. Later, it rebounded to close at 2284 for the morning break as bargain hunting buying activities emerged. In the afternoon, it resumed trading with a steady tone tracking a steady crude oil prices. Benchmark Dec08 being push to hit 2357. However, meeting some selling resistance on talks that 1-25 Sept08 export is likely to be lower by 10%-12%. At closed, it slides to settle RM13 higher at 2318. News that Bursa Malaysia Derivative Clearing raise the margin deposit to RM11,500 effective this Friday due to next week’s Hari Raya holidays, prompted some players to stay sideline. Total daily volumes decline to 8,458 contracts changed hands.