Trader's Comment: CPO futures surrendered some of its earlier gains to end slightly higher.

CPO futures surrendered some of its earlier gains to end slightly higher. Benchmark Feb09 open almost unchanged at 1462, and rose to morning high of 1493, tracking NYMEX crude oil that traded above $50 level in Asian time zone, and also firmer soy oil prices in e-CBOT, extending their respective overnight gains. It slipped to intra day low at 1452 but were well supported and managed to climb back until it hit the intra day high of 1503 in the early afternoon session. However, CPO prices began to ease off when Asian time NYMEX crude oil fell back to below $50 level. Talks that India may impose import tax on palm oil by this month also further undermined CPO prices. Profit taking activities then emerged as traders took advantage of higher prices. Benchmark Feb09 retreated to 1468, before it settled RM28 higher at 1488.