Trader's Comment: The “Bull’s party” of CPO was spoiled

The “Bull’s party” of CPO was spoiled by disappointing closed of overnight CBOT and zero export duty by Indonesia government. Benchmark Jan09 open RM31 lower at 1428, tracking lower soybean prices and disappointing closed of soy oil which only up marginal compared to more than 150pts up during Asian time zone yesterday. News that Indonesian government’s decision to scrap the export duty to zero added onto the selling pressure. Benchmark Jan09 prices has slide to hit intra day low and ends at 1399 by midday. Prices were hovering mostly between 1395-1430 before late covering activities emerge and sent prices to settle at RM24 lower at 1435.