Trader's Comment: Palm oil futures hovering in tight range

Palm oil futures hovering at lower level between 2100-2146 through out the day, tracking the sharp fall of Asian time NYMEX crude oil. Nevertheless, prices seem well supported at lower end today as it tested 2100 level and defended well. Market sentiment had been quite bearish initially due to falling crude oil prices, coupled with the statement made by top industry analyst Mr. Dorab Mistry who said that India may impose a nominal tax on CPO imports and marginally raise the levy on refined oils. However, the outcome of India Budget today had been silence on this issue, implying that India maintained its current status of not imposing any tax yet on CPO. This led Benchmark Sep09 to stabilize and ended RM46 lower at 2129. Other vege oil market were also in defensive mode as eCBOT soy oil drop 1.6% while Dalian palm ended inching lower.