Trader's Comment: CPO futures rallied to 10 week high but ended off its high on profit taking.

CPO futures rallied to 10 week high but ended off its high on profit taking. Benchmark Jun09 surged to intraday high of 2051 in the afternoon session before some intraday profit taking activities emerged and sent prices to ease off slightly before it settled RM45 higher at 2030. Global commodity prices including vege oil market had been rising steadily due to continuous weakening of the US dollar. eCBOT soy oil and Dalian palm also rallied strongly since early Asian time trading. This led Benchmark Jun09 to jump immediately above 2000 during opening bell to open RM25 higher at 2010 and was well supported at that level through out the day. The bullish sentiment in CPO market was also enhanced by trader’s expectations that palm oil stock may continue to decline this month despite lower export recently reported by private cargo surveyors.