Trader's Comment: CPO futures declined after the Lunar New Year break

CPO futures declined after the Lunar New Year break following a sharp fall of more than USD 3/barrel in NYMEX crude oil and losses in CBOT soyoil prices. Weak exports data for 1-25 day released by private cargo surveyors had added pressure to the market momentum. ITS reported at 952,478 (-29%) whereas SGS pegged at 1.016.477 (-24%) compare the same period in last month. News on Oil World cuts South American 2009 soy crop forecast following Argentine soy crop hit badly by the worst drought had lending some support to the local front. Benchmark Apr 09 prices bounced back from the intra-day low at 1770 to close at 1803, down RM 27 by midday break. However, late liquidation activities emerged once prices unable to sustain further at 1800 mark. Apr 09 then dipped to settle at 1782, down RM 48. Trading remained in dull mode and thin as lack of participant due to most players still away for Lunar New Year holiday. Total daily volume stood at 6,079 contracts changed hands.