Trader's Comment: CPO futures ended broadly higher on the first day of trading in 2009, extending its 5th day rally.

CPO futures ended broadly higher on the first day of trading in 2009, extending its 5th day rally. Benchmark Mar09 merely hit intra day low of 1706 after opened RM16 higher at 1711, following higher overnight NYMEX crude oil and CBOT soy complex. It then started to climb slowly through out the day. The released of end December exports data by private cargo surveyor ITS had provided good support on CPO prices. Benchmark Mar09 continued to rise higher after second session resumed trading until it hit the intra day high of 1748. Some profit taking activities began to emerge in late trading saw CPO prices slid to 1712. Nevertheless, the “bull” immediately gained back its strength and sent Benchmark Mar09 to bounce back and settled RM45 higher at 1740. Although the overall market sentiment was supportive, traders were still cautious as Asian time crude oil eased off today.