Trader's Comment: Palm oil futures made an unexpected “U Turn” as it bounced back strongly from yesterday’s heavy losses on aggressive covering.

Palm oil futures made an unexpected “U Turn” as it bounced back strongly from yesterday’s heavy losses on aggressive covering. Benchmark Sep09 opened only slightly lower at 2150 despite the overnight NYMEX crude oil closed sharply lower. It then began to rise strongly through out the day until it hit the intra day high of 2299 before finally ended RM129 higher at 2286. Aggressive short covering activities were seen since early trading, as traders believed that yesterday’s market sold down had been overdone. External markets were rather volatile and mix today. Dalian palm inched lower while eCBOT soy oil edged more than 1% higher. Meanwhile, Asian time crude oil had been hovering around USD67 level.