Trader's Comments: CPO futures ended in positive territory after recovered its earlier losses

CPO futures ended in positive territory after recovered its earlier losses on expectations of end Feb inventory likely to drawn down. Benchmark May09 hit intra day low of 1862 after opened RM25 lower at 1865, tracking the early losses of eCBOT soy oil and Dalian palm in Asian time trading. However, it managed to recoup some ground and climbed steadily through out most of the sessions. External factors had been quite bearish today as eCBOT soy oil and Dalian palm extended their overnight losses. News that China cancelled 2-3 cargoes (180k tonnes) of soybean from US had also further undermined the external vege oil market sentiment. Nevertheless, CPO market was still supportive as Benchmark May09 hit intra day high at 1919 in the afternoon session before it ended RM5 higher at 1895. Market talk that end Feb export data will be around 1.13-1.16 million tonnes had enhanced the confidence of traders as they believe that Feb end stocks will likely to drawn down due to anticipation of lower productions.