Trader's Comment: CPO futures recovered from fresh year low to end generally higher

CPO futures recovered from fresh year low to end generally higher on the back of sharp rebound in Asian stock market. Benchmark Jan09 open RM40 higher at 1430, after overnight CBOT soy complex rebounded from a technically oversold territory with a strong cash soy market. Nevertheless, crude oil trading in Asian time did not follow the rebound, while investors were still worried that crude oil prices may break below $60. CPO prices then fall and hit fresh year low at 1331, which is also the 3-year low. After lunch break, regional equity market encounter a strong recovery and this help improve the sentiment of local commodity market. Benchmark Jan09 open higher during afternoon session, and prices rally higher to settle at day high of 1459,up RM 69. Strong gains in e-CBOT also helped to lift the market sentiment. Rival soy oil up about 150 pts while soy bean higher by 50ct. Daily volume remain steady, with total 17,189 contracts changed hands.