Tradder's Comment: Bear continue to be in charge as palm oil futures extended from yesterday losses

Bear continue to be in charge as palm oil futures extended from yesterday losses and tested 2350 level on talk of higher production. Benchmark Aug09 initially hovered between 2469-2422 level through out the morning session after opened almost unchanged at 2449. However, the emerged of market talk that the production in May could improve significantly had triggered some aggressive selling activities in local CPO market and saw Benchmark Aug09 slid to intra day low of 2350 in the afternoon session. The appear of late short covering led prices to bounce back and settled RM15 lower at 2430. External market had also added some weaker sentiment. Dalian palm ended more than 2% lower while eCBOT soy oil edged lower.