Trader's Comment: Palm oil futures surrendered yesterday’s gains and tumbled sharply lower on bearish export expectation.

Palm oil futures surrendered yesterday’s gains and tumbled sharply lower on bearish export expectation. Benchmark Nov09 initially opened RM15 higher at 2390, following the strong closed in overnight NYMEX crude oil. However, as regional equity markets continued to slide further, this led palm oil prices to follow suit and fall further through out most of the sessions. The emerged of market talk that Aug1-20 export figure may be around 815k tonnes (ITS reported 913k tonnes in last month same period) had created more fears in CPO market. Benchmark Nov09 broke below 2300 level in late trading and hit intra day low of 2284 before it ended RM76 lower at 2299. Daily volume increased more than doubled the usual level with total 33,290 contracts changed hands.