Trader's Comment: CPO futures managed to minimized its losses as it recouped most of the losses on late covering.

CPO futures managed to minimized its losses as it recouped most of the losses on late covering. The overnight tumble in NYMEX crude oil prices and the sharp losses in CBOT soy oil saw Benchmark July09 gap down RM56 to open at 2390. Market sentiment remained uncertain as prices then began to hover between 2420-2385 level through out most of the sessions. Although Dalian palm had been trading at limit down prices the whole trading day and eCBOT soy oil inched lower, the concerns on supply tightness had limit the effect of weak external factors. Traders were confident that stock levels were still at relatively low level. The emerged of intra day short covering activities in late trading sent Benchmark July09 to bounced back again and hit intra day high at 2442 before it finally settled RM11 lower at 2435.