Trader's Comment: Palm oil futures rebounded strongly from yesterday’s losses in anticipation of bullish export data

Palm oil futures rebounded strongly from yesterday’s losses in anticipation of bullish export data and regional positive equity market. Benchmark Aug09 immediately gap up RM37 higher to open at 2607 following overnight NYMEX crude oil bounced back sharply from its previous losses. It then climbed steadily through out the most of the sessions and hit intra day high of 2665 before it eased off slightly and settled RM60 higher at 2630. Traders began to gain back confidence again in the strong fundamentals of CPO market after a market talk that export data which is scheduled to release tomorrow may hit 814k tonnes level compared to 1-20 April at 754k tonnes. This helped to further enhance buying activities in BMD. External markets also had showed some supportive moves. Dalian palm ended more than 3% higher while eCBOT soy oil gained back its earlier losses to edged higher.