Trader's Comment: CPO futures recouped from yesterday’s losses on strong external factors.

CPO futures recouped from yesterday’s losses on strong external factors. Benchmark July09 climbed steadily through out the day and hit intra day high of 2698 in late trading before it finally settled RM55 higher at 2680. Positive external market had helped supporting local CPO market. Both eCBOT soy oil and Dalian palm traded more than 2% higher during Asian time trading. Furthermore, spill over buying interest from bullish equity market also helped to provide cushion to the local front. Analyst from Oil World had forecasted that CPO futures would continue to recover from last week sell-off caused by global flu fears. It is likely to stay firm due to low stocks concern. This had further enhanced traders confident in the result of upcoming MPOB supply & demand data. Daily volume remained good with 28,609 contracts changed hands.