Trader's Comment: CPO futures ended lower after trading in a roller-coaster manner

CPO futures ended lower after trading in a roller-coaster manner, as crude oil fell below $60. Benchmark Jan09 initially open RM44 lower at 1542, tracking overnight NYMEX crude oil, which settled below $60 a barrel since March 2007, and also a lower CBOT amid stronger dollar and weakening equities. CPO prices then bounced back and hit intra day high at 1563, but failed in its attempt to close yesterday’s left over gap. It then fell to the day low of 1505. During the early 2nd session, some covering activities emerged at the lower end, and sent prices rebounded to 1551. Later it hovered mostly between 1545-1515 before it settled at 1539, down RM 47. Market sentiment remained weak due to crude oil trading below $60, and also easier underlying cash market.