Trader's Comment: CPO futures close sharply lower amid falling export of palm oil products

CPO futures close sharply lower amid falling export of palm oil products. Benchmark Dec 08 initially opened RM71 lower at 1779 following decline in overnight crude oil prices and lower CBOT soy oil. The release of weaker export data had sent prices down further and hit intra-day low at 1734. Both cargo surveyors ITS and SGS had posted a bearish 1-15 October export data, which were down by 9.07% and 9.24% respectively. The decline of Asian and European stock markets after two-day rallied has further weakened the sentiment in local commodities market. Nevertheless, the turning down of production pressures has provided some support on CPO prices, Benchmark Dec 08 is still “surviving” well above recent low of 1725 level, and closed at 1743, down by RM 107 compare yesterday settlement. Daily volume remained good with 15,045 contracts changed hands.