Trader's Comment: Palm oil futures extended strongly from its overnight rally to break 2100 level

Palm oil futures extended strongly from its overnight rally to break 2100 level on improve export numbers and positive regional equity markets. Both private cargo surveyors had released positive results of 1-15 July export data as ITS and SGS reported an increase of 17.6% and 14.6% respectively. On the other hand, market were now anticipating that production may not keep pace with the increasing demand and this further enhanced more speculative buying activities in BMD. Benchmark Sep09 rallied strongly through out most of the sessions until it hit intra day high at 2124 in the afternoon session. It finally eased off slightly to settle RM67 higher at 2103 due to some late intra day profit taking activities.