Trader's Comment: Palm oil futures recovered from yesterday’s losses on late covering after choppy trading in earlier session.

Palm oil futures recovered from yesterday’s losses on late covering after choppy trading in earlier session. Prices were very volatile in the morning session as Benchmark July immediately retreated sharply to intra day low of 2413 after opened at 2479. It managed to bounce back to 2457 but was further sold down again and closed at 2414 before lunch break. Price movement became more “friendly” in the afternoon session as Benchmark July09 open slightly higher at 2444 and started to hover between 2450-2470 level. The emerged of late covering activities pushed prices to intra day high of 2490 before it finally settled RM24 higher at 2480. Traders were still cautiously waiting for tomorrow’s end-April export data although there had been market talk that export figure could be around 1.2 million tones. Dalian palm regained from earlier losses to end higher while eCBOT soy oil also edged higher today. Daily volume remained good with 24,260 contracts changed hands.