Trader's Comment: Palm oil futures ended flat after a dramatic rebound on aggressive pre-weekend covering.

Palm oil futures ended flat after a dramatic rebound on aggressive pre-weekend covering. Benchmark Sep09 immediately gap down RM35 to open at 2140 following overnight sharp losses in NYMEX crude oil. Initially, it hovered between 2123-2157 level through out the morning session until the sudden sharp fall in Dalian palm triggered more speculative selling in the BMD. Prices tumbled to break below 2100 level as it hit intra day low of 2085 in the afternoon session. Nevertheless, prices then started to recover steadily as short covering activities began to emerge. Buying became more aggressive and panic covering were seen as Benchmark Sep09 surged strongly to intra day high of 2181 before it finally ended unchanged at 2175.