Trader's Comment: CPO futures hit fresh low and close with triple digit losses

CPO futures tumbled with triple digit losses as tracking sharp losses in Dalian Commodities Exchange on soyoil and palm oil. NYMEX crude oil coupled with e-CBOT traded in Asian time zone also added pressure to the local front. Benchmark Nov 08 initially opened RM 48 lower at 2421 had failed to hold ground after hit the high at 2427. Speculative selling interest dragged prices to violate the 2400 levels and dipped to the low at 2367 before closing at 2379, down RM 90 by midday break. James Fry a London-based industry analyst, told Reuters on the sidelines of an industry seminar in Singapore that the price of Malaysian crude palm oil is expected to hover around USD700 per tonne during the next six months. Selling pressure getting heavier and lack of buying support saw Nov 08 hit the fresh year low at 2346 before settling RM 115 lower at 2354. Total volume increase to 17,482 contracts changed hands. 1-10 Sept 08 export figures by private cargo surveyors and also MPOB August demand and supply data will be released tomorrow. Market talk that 1-10 Sept 08 export data was roughly at 417,000 tonnes.