Trader's Comment: CPO futures extended its gain as crude oil surged further at Asian trading time

CPO futures extended its gain as crude oil surged further at Asian trading time. Benchmark Jan09 initially open RM85 higher at 1520, as overnight crude oil rallied after US dollar weakened following interest rate cut by Federal Reserve. CPO prices then fell to the intra day low of 1491, failed in its attempt to close yesterday’s left over gap. News that crude oil extended its rally in Asian time zone and hit $70 a barrel had also help lifted the bullish sentiment in local commodities market. Benchmark Jan09 continue to rise further until it hit the price of daily 10% limit at 1578, before it settled at 1560, up RM 125. Beside the crude oil factor, market is still awaiting end month export figures by private cargo surveyor which is scheduled to release tomorrow and heard that market talk of end month export figure is roughly at 1.3 million, up about 8% compare the same period of last month. Daily volume remains steady, with 15,951 contracts changed hands.