Trader's Comment: Palm oil futures made a dramatic “U turn” as it clawed back its earlier losses to end higher.

Palm oil futures made a dramatic “U turn” as it clawed back its earlier losses to end higher. Benchmark Nov09 initially opened RM19 higher at 2320 but was immediately slammed down through out the morning session, tracking the weak external markets in the early Asian time trading. It hit intra day low of 2234 before the morning close at 2240. However, market sentiment then began to change as external markets started to improve. The emerge of massive short covering and speculative buying activities saw Benchmark Nov09 gapped higher during second session opening and continued to rally strongly in the remaining session until it hit intra day high of 2346 before settled RM44 higher at 2345. Both Asian time NYMEX crude oil and eCBOT soy oil had recovered later and traded with more than 1% gain in late trading.