Trader's Comment's: Palm oil futures recouped some of its earlier losses to end slightly lower

Palm oil futures recouped some of its earlier losses to end slightly lower. Benchmark Feb 09 initially opened RM35 lower at 1593 and slid to the intra day low at 1560, tracking overnight NYMEX crude oil which ended 3-1/2 year low as OPEC delayed their decision to cut output, coupled with easier CBOT soy complex. However, CPO prices were still well supported as short covering activities and bargain-hunting buyers took action ahead of a palm oil conference to be held in Bali tomorrow. Benchmark Feb09 the hovered between 1565-1585 level for most of the sessions. Some late intra day short covering saw prices recovered to the day high of 1614 before settling at 1603. The events of heavy rain fall and some flooding at Sabah and Sarawak were also taking into consideration by players.