Trader's comment: CPO futures found support around 2900 level

CPO futures found support around 2900 level and reversed all of the early losses to end higher after a fairly active trading session. Short covering ahead of full July export data scheduled to release by private cargo surveyors and technical rebound after yesterday's sharp fall saw benchmark Oct 08 prices rallied to 2994 in late trading before it settling RM 23 higher at 2992. Market anticipates full July export figures between 1.37-1.4 mln tonnes.

FCPO is bottom out !!

FCPO is bottom out following the formation of reversal candle after the recent decline. Market may want to rebound and challenge the resistance at 3017 followed by 3116-3127. Support is pegged at 2861

FKLI eyeing upside gap at 1175.5-1182.5?

Market violated the recent high at 1154.5 and stayed firm with its upward momentum. Looks like market is targeting to challenge the gap left over on 30 Jun-1 July 2008 at 1175.5-1182.5. For downside, support is pegged at 1146-1155 (gap left over today).

KLSE march higher violated the resistance 1153-1157

KLSE march higher and violated the resistance at 1153-1157. Market may continue its upward momentum in near term. Look for the resistance at 1174-1188. While, support at 1150-1155 (gap left over today).

USD/MYR looks pretty rangy

USD/MYR chart looks pretty rangy between 3.28-3.20 for the moment. It has been trading within this range since mid May 08 till now while looking for a new direction. Chart and technical point of view appear to be quite supportive after a good rebound from 3.1300 some where end April 08.

FCPO in range bounde mode after yesterday steep fall

Market was in range bound mode for morning session after yesterday hit fresh new low at 2861. As for now, immediate resistance is at 3017-3045 (gap left over yesterday). For downside, immediate support is pegged at 2861.

Breaking News-DJN UPDATE: Dry Weather Likely In SE Asia Oil Palm Growing Areas

KUALA LUMPUR (Dow Jones)--Malaysia and Indonesia, Asia's largest oil palm
growers, may face dry weather this week, which will help in the crop's harvest,
according to Chicago-based forecaster T-storm Weather.

Breaking News-RTRS-POLL-Malaysia July palm stocks seen easing from 25-yr high

RTRS-Malaysia end-July palm oil stocks seen down 0.9% from June to 2.02 mln tonnes-Reuters
RTRS-Malaysia's July palm oil output seen up 3.7% from June-POLL
RTRS-Malaysia's July palm oil exports seen up 16.1% from June-POLL

FKLI climbed up further

FKLI climbed up further after recent high at 1154.5 violated. Market may continue its upward move in near term. Currently, we looking the resistance at 1175.5-1186 (gap left over on 30 Jun-1 Jul, 2008). While, support is at 1155-1146 (gap left over this morning).

KLSE violated its resistance at 1157-1155

Market gap up and violated the resistance at 1157-1155. We now looking the resistance at 1168.51-1174.96. Support is pegged at 1155.58-1149.17 (gap left over this morning).

Breaking News-RTRS-US SEC extends emergency short sale rule through Aug 12

WASHINGTON, July 29 (Reuters) - U.S. securities regulators have extended an emergency rule aimed at curbing abusive short selling in the stocks of 19 major financial firms, including mortgage giants Freddie Mac and Fannie Mae .

The Securities and Exchange Commission on Tuesday extended through Aug. 12 its temporary rule that is part of an agency crackdown on possible market manipulation that some blame for steep declines in the shares of financial companies.

The rule requires investors to borrow a stock before selling it short and to deliver the stock on the settlement date.

Short sellers arrange to borrow shares they consider overvalued and sell them in hopes of making profit when the price drops.

The rule applies to Lehman Brothers , Goldman Sachs , Merrill Lynch , Morgan Stanley , JPMorgan Chase & Co and Citigroup Inc , among others.

Breaking News-Vegoil price fall sparks physical demand-Oil World

HAMBURG, July 29 (Reuters) - The global fall in vegetable oil prices in July has sparked a recovery in physical demand noticeably for biofuel production, Hamburg-based oilseeds analysts Oil World said on Tuesday.

Breaking News-RTRS-Oil World sees July surge in Argentine soybean exports

HAMBURG, July 29 (Reuters) - A surge in Argentine soybean exports is likely in July and cut U.S. shipments, Hamburg-based oilseeds analysts Oil World said on Tuesday.

Trader's Highlight

DJI-July 29 (Reuters) - U.S. stocks rebounded on Tuesday, rising more than 2 percent on another sharp slide in oil prices and after Merrill Lynch's latest write-down and share sale hinted at a possible turning point in the credit crisis.The Dow Jones industrial average <.DJI> rose 266.48 points, or 2.39 percent, at 11,397.56. The Standard & Poor's 500 Index <.SPX> gained 28.82 points, or 2.33 percent, at 1,263.19. The Nasdaq Composite Index <.IXIC> rose 55.40 points, or 2.45 percent, at 2,319.62.

NYMEX-NEW YORK, July 29 (Reuters) - U.S. crude oil futures ended more than $2 per barrel lower on Tuesday as OPEC signaled no output cuts, in spite of tumbling prices, while U.S. housing data deepened demand worries in a weak economy.September crude settled down $2.54, or 2.04 percent, at $122.19 a barrel, trading between $120.42, the lowest price since $119.33 on May 6, and $125.85.

CBOT-SOYBEANS - Down 16 cents per bushel to up 1-1/2, with August down 16 at $13.84-1/4 per bushel.Ends down on improving crop conditions and current good soy growing weather in the United States. Falling crude oil also weighs, especially on soyoil. But market ended above the day's lows with support from gains in corn and some outlooks for hotter weather late this week and next week in the U.S.

Oil World sees July surge in Argentine soybean exports.

SOYOIL - Down 1.32 to 1.49 cents per lb, with August down 1.47 at 57.83 cents per lb.
Following soy in volatile weather market with falling crude oil prices.

FCPO-KUALA LUMPUR, July 29 (Reuters) - Malaysian crude palm oil futures dropped as much as 4.7 percent to seven-and-a-half month lows on Tuesday, slipping below a key resistance level of 3,000 ringgit on signs of rising stocks of the vegetable oil.The benchmark October contract on the Bursa Malaysia Derivatives Exchange fell as much as 140 to 2,861 ringgit ($877) a tonne, the lowest level since December 12, 2007. The contract then clawed back some losses to settle down 32 ringgit at 2,969 ringgit.

REGIONAL EQUITIES-July 29 (Reuters) - Most Southeast Asian stock markets fell on Tuesday as more writedowns by U.S. investment bank Merrill Lynch fueled selling of regional financial shares.

The U.S. bank said it would take a fresh $5.7 billion writedown to offload toxic debt, adding to worries that the year-long global credit crisis is far from over and will further
undermine the global economy.

Singapore <.FTSTI> fell 0.8 percent and Thailand <.SET> 1.3 percent to their lowest in a week. Malaysia <.KLSE> edged 0.3 percent down while the Philippine index <.PSI> dipped 0.6 percent.

DJI reversed from its yesterday losses

DJI reversed from its yesterday losses to end with a long white candle. Market remains stayed above the downtrend line. We continue to look for the resistance at11634-11698 and support at 11120-11130.