Trader's Comment: CPO futures fell sharply on record high stock data

CPO futures fell sharply on record high stock data. Benchmark Feb09 immediately slid lower through out the morning session after openedRM6 higher at 1650 that is also the intra day high. The release of key inventory data by Malaysian Palm Oil Board(MPOB), which reported a higher than initial estimated of stocks level had further undermined the CPO prices. MPOB put November08 end stocks at record of 2.26 million tones up 8.34% from October08. Benchmark Feb09 broke below 1600 level once afternoon session resumed trading and hit intra day low at 1567. It then hovered between 1570-1595 level before it finally settled RM63 lower at 1581. The spill over from the fall in regional equity market after US Congress failed to pass the deal to bail out automakers had also provide selling pressure to the already weak sentiment.