Trader's Comment: CPO futures crasehd to end at the new 2-years low again

CPO futures crashed by 10.3% to end at the new 2-year low again, amid fear of high stock level and also regional stock market meltdown spill over to local commodities market. Benchmark Jan09 open at 1520 and hit intra day high of 1556 after covering yesterday’s gap. Then it just gives up its gain and tumbled all the way down for the rest of the day. Crude oil surrendered its earlier gain and fell more than $4 during Asian time trading. Furthermore, Reuters poll had stated that Malaysia’s October palm oil stock are expected to climb to a record level of 2.04 million tones as output rises amid slowdown in export. This has worsened the already weak market sentiment. As traders worry of that build-up in stock supplies, CPO prices were slammed down by its daily 10% trading limit and extend its limit to 15%. Benchmark Jan09 settled at 1390, down by RM160, after it hit the intra day low of 1358.