Another new low for FCPO

Another fresh low for FCPO with prices tested the 2700 before rebound to close at 2750. Dark cloud covered the overall technical landscape and market sinking with fresh low everyday. We look for the immediate support at 2700-2680 followed by 2630-2600. while, resistance is at 2787-2820 (gap left over this morning).

Trader's Comment:External factors continue to influence BMD FCPO to set fresh year low

External factors continue to influence BMD FCPO to set fresh year low. Overnight soyoil prices in CBOT settled with 250 points limit down, soyabean also closed 70 cents limit down and NYMEX crude oil trade below USD120 a barrel in the afternoon saw selling interest slammed benchmark Oct08 price to hit 2700 before it rebounded to settle RM140 lower at 2750. News that Malaysia Commodities Minister's plan to use 500,000 tonnes of crude palm oil to produce biodiesel in next two-three months was ignored by market players.

FKLI rebound to off low

FKLI violated the immediate support at 1136.5-1135 and tested 1120-1125 in intra-day basis but not closing as prices rebound in late session to close off low. Market is tangent the downtrend line yet we still have to watch out any chance of breaking down the downtrend line. Thus, support and resistance is at 1110-1109 and 1148-1150 level respectively.

KLSE extended its losing streak

KLSE ended sharply lower with a long black candle. Prices violated the immediate support at 1141 and closed with double digit losses. Market is approaching back to the downtrend line after prices failed to hold at 1164. As for now, support is at 1116-1112.5 (gap left over on end July). Resistance is at 1140-1150.

FCPO fresh low

FCPO gapped down with a new low for the year at 2750. We now look for the support at 2680-2700 while resistance is at 2787-2890 (gap left over this morning).

FKLI looks may want to test 1119-1120

FKLI easing and covered the gap at 1136.5-1135 level. Market may want to test the 1st support at 1119-1120. 2nd support is at 1110-1105.5 (gap left over on mid Jul, 2008. Resistance at 1135-1137.

KLSE losing upside momentum

KLSE losing its upside momentum. We now look for the immediate support at 1123.19-1123.64 followed by the gap left over on mid Jul at 1112.29-1116.14. While, resistance is at 1141-1142.

DJI in consolidation mode

DJI in consolidation mode after market failed to hold 11580. We now look for the resistance and support at 11580 and 11128-11125 levels respectively.

Breaking News:RTRS-Malaysia Commodities Minister says plans to use 500,000 tonnes of crude palm oil for biodielsel in next 2-3 mths.

KUALA LUMPUR, Aug 5 (Reuters) - Malaysia plans to use 500,000 tonnes of crude palm oil from its swelling inventories in the next two to three months to produce biodiesel to boost faltering prices of the vegetable oil, Commodities Minister Peter Chin said on Tuesday.

"We are talking about anything in the region of 500,000 tonnes," Peter Chin told Reuters from Indonesia by telephone.

"The timing should depend on the strategy that we use and the infrastructure to absorb this amount but we plan do it as soon as possible. Surely in the next two to three months."

Trader's Highlight

DJI-NEW YORK, Aug 4 (Reuters) -U.S. stocks fell on Monday as shares of energy and commodity-related companies tumbled on falling oil and metals prices and investors worried the housing slump could fuel further losses at financial companies.

The Dow Jones industrial average <.DJI> fell 42.17 points, or 0.37 percent, to 11,284.15. The Standard & Poor's 500 Index <.SPX> slid 11.30 points, or 0.90 percent, to 1,249.01, while the Nasdaq Composite Index <.IXIC> dropped 25.40 points, or 1.10 percent, to 2,285.56.

NYMEX-NEW YORK, Aug 4 (Reuters) - U.S. crude futures tumbled on Monday as OPEC output likely rose for the third month in a row in July, outweighing concerns about Tropical Storm Edouard, A gauge of U.S. core inflation rose more than expected,ratcheting up worries over demand for oil.
September crude settled down $3.69, or 2.95 percent, at $121.41 a barrel, after trading from $119.50 to $126.35.

CBOT-SOYBEANS - August down 70-3/4 cents at $12.87 a bushel; new-crop November down 70 at $12.95. Dived 70-cent limit in several months. Traders expecting USDA late on Monday to show steady U.S. soy condition ratings.

SOYOIL - August down 2.51 cents at 54.10 cents per lb; December down 2.5 at 55.31 cents. Several months fell 2.5 cent trade limit, pressed by weakness in soybean and crude.

FCPO-JAKARTA, Aug 4 (Reuters) - Malaysian crude palm oil futures fell about 2 percent on Monday, following a slide in soyoil prices, a drop in crude oil, and worries about a build-up in palm oil supplies, dealers said.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange closed down 60 ringgit at 2,890 ringgit ($885) a tonne, after trading as low as 2,820 ringgit, a level not seen since October 31, 2007.

REGIONAL EQUITIES-August 4 (Reuters) - Most Southeast Asian equities extended the previous session's losses and closed lower on Monday on increased global economic growth worries, with Malaysian planters hit hard by record level stocks.

Singapore <.FTSTI> fell 1 percent to end at its weakest in 2 weeks, with property shares again taking a beating. Malaysian<.KLSE> and Indonesian <.JKSE> shares both lost 0.9 percent lower, while Thai stocks <.SETI> edged down 0.6 percent.

Breaking News-RTRS-India to retain curbs on farm exports, futures

NEW DELHI, Aug 4 (Reuters) - India may extend the ban on futures trading in soyoil, rubber, chickpea and potato when it expires next month, and is expected to retain export curbs on rice and wheat for at least three months, a top official said.