Trader's Comment: Palm oil futures surged to new recent high on bullish USDA report.

Palm oil futures surged to new recent high on bullish USDA report. Overnight CBOT soy complex rallied strongly on the concern of supply constraints after USDA estimated US farmer would plant 76.0 million acres of soybeans, which was significantly lower than market expectation of 79.1 million acres. Benchmark Jun09 opened RM30 higher at 2030. It initially slid to intra day low of 2010 but then bounced back again and started to hover between 2041-2021 level through out most of the sessions. However, some aggressive short covering activities began to emerge in late trading and saw benchmark Jun09 rallied to settle at intra day high of 2070. Trading volume increased dramatically with total 26,304 contracts changed hands.