Trader's Comment: Palm oil futures surrendered its earlier gains to lower on pre-weekend profit taking activities.

Palm oil futures surrendered its earlier gains to lower on pre-weekend profit taking activities. Prices initially showed some strong moves in the early trading following Private Cargo Surveyors ITS released its friendly export data that reported an increase of 1.7% for the period of 1-15 May. Benchmark July09 opened RM36 higher at 2720 and surged to intra day high of 2753 before morning close at 2740. However, the release of news during lunch break that the first case of A (H1N1) infection confirmed by Malaysia’s Health Ministry had given traders the excuse to sell aggressively for the remaining session. This sent Benchmark July09 to the intra day low of 2655 in late trading before it finally ended RM21 lower at 2665. External market turn mix in late Asian time trading. Dalian palm gave up its earlier gains to end lower while eCBOT soy oil inched slightly higher.