Trader's Comment: CPO futures tumbled sharply despite Asian time crude oil stood firm

CPO futures tumbled sharply despite Asian time crude oil stood firm after sliding more than 4% to settle below $47 overnight. Together with lower overnight CBOT soy complex, Benchmark Feb09 merely hit the intra day high at 1590 after opened RM15 lower at 1588, thereafter fell all the way down till the end of morning session. Some support on CPO market appeared in the early part of second session saw prices to hover between 1560-1575. However, it failed to sustain due to lack of follow through buying, prompting intra day long liquidation activities and sent prices to tumble in the late trading. It hit intra day low of 1527 before it settled RM67 lower at 1536. Statement made by Dorab Mistry, a leading industry analyst, which stated that India may impose tax on palm oil next month had also provided selling pressure on market.