Trader's Comment: Palm oil futures surrendered its overnight gains

Palm oil futures surrendered its overnight gains after late liquidation. The bull was just lack of confidence to march over despite the release of some good data. MPOB figures were rather supportive couple with the bullish export data by both private cargo surveyors, and yet the market was unable to rally further as it merely hit intra day high at 2058 to cover previously left over gap. MPOB put end June09 stock up 2.5% at 1.40 million tonnes from 1.33 million tonnes in May09 (Market estimate was at 1.43 million tonnes). Trading remained cautious through out most of the sessions as players still waiting for tonight’s USDA supply & demand report. Benchmark Sep09 encountered some late intra day liquidation activities and eased off further in the last hour of trading to settle RM37 lower at 2010.