Trader's Comment: Palm oil futures recouped some of its earlier losses on late covering to end off low.

Palm oil futures recouped some of its earlier losses on late covering to end off low. Benchmark May09 initially opened RM50 lower at 1845, tracking overnight CBOT soy oil’s heave loss. It managed to climb to 1879 only, failed to cover its yesterday’s left over gap, and then fell again to intra day low at 1842 before lunch break. Local CPO market seems to remain supportive above 1800 level as there were no signs of aggressive selling activity despite the extremely bearish external factors, especially with Dalian palm trading at limit down prices through out the whole day, while eCBOT also edged lower. Benchmark May09 began to hover between 1842-1870 level through out the afternoon session, before some late covering activities emerged and pushed CPO prices to intra day high of 1887, before it finally settled RM20 lower at 1875.