Trader's comment: CPO futures extended its losses to hit fresh year low

CPO futures extended its losses to hit fresh year low, dragged down by heavy losses in crude oil and soyoil prices. Official Jul 08 supply and demand data released by MPOB was basically view as neutral figure; July production up 6.2% at 1.56 million tonnes whereas end-stock draw down 2.8% to 1.98 million tonnes. Private cargo surveyors's 1-10 August 08 export figures were more or less within expectation. SGS put 1-10 Aug export at 401,800 vs 326,109 in the same period in July. At closed, Oct 08 settled RM 108 lower at 2671.

FCPO another fresh year low

Another fresh year low as market violated the physiological support at 2700 levels. Bear led all the way and saw prices sank to close with triple digit losses with a long black candle. We now put 2520-2600 as immediate support. For upside, resistance is at 2728-2779 (gap left over today).

FKLI in consolidation phase

FKLI in consolidation phase as prices stuck between the overhead resistance 1140 and support at 1108-1106.5.

KLSE supported at 1120

Looks like 1120 pretty supported after tested few times yet manage to defend. We continue to look for the gap left over 1116-1112.5 (gap left over on end-July, 2008). Resistance remained at 1140-1150.

Can you see the bottom in FCPO hourly?

I can't see it yet. We now look for the immediate support at 2520-2600. For upside, immediate resistance at 2728-2779 (gap left over this morning).

FKLI hourly broke the upper band of triangle

FKLI hourly broke the upper band of the triangle and triggered the buy stop at 1125. Looks market defended well at 1106.5-1108.0 after last week tested few times but yet to break. For upside, we look for the resistance at 1143-1143.5.

USD/MYR broke the overhead resistance at 3.280

USD/MYR broke the overhead resistance at 3.280 easily and appears in the up-swing mode, likely to challenge the overhead resistance at 3.35-3.36 level.

Trader's Highlight

DJI-NEW YORK, Aug 8 (Reuters) - U.S. stocks soared on Friday rounding out their best week in more than three months, as oil plunged below $115 a barrel, easing inflation concerns and improving prospects for business and consumer spending.

The Dow Jones industrial average <.DJI> rose 302.89 points, or 2.65 percent, to 11,734.32, while the Standard & Poor's 500 Index <.SPX> jumped 30.25 points, or 2.39 percent, to 1,296.32. The Nasdaq Composite Index gained 58.37 points, or 2.48 percent, to 2,414.10.

NYMEX-NEW YORK, Aug 8 (Reuters) - U.S. crude oil futures closed nearly $5 lower on Friday as the dollar rallied on concerns about slowing European and Asian economies, feeding worries about lower oil demand.

On the New York Mercantile Exchange, September crude settled down $4.82, or 4.02 percent, at $115.20 a barrel, after trading between $114.90 and $120.08. The settlement was the lowest since May 1's $112.52 and the day's low was the lowest since crude hit $111.78 on May 2.

CBOT-SOYBEANS - August down 44 cents at $11.99 per bushel;new-crop November down 58-1/2 at $11.80-1/2.

Nearly ideal crop weather in the U.S., rallying dollar and falling crude oil to weigh on market. Traders hesitant to hold a position in the market before weekend and Aug. 12 USDA crop report.

Ahead of Aug. 12 crop report, the average analyst estimate for 2008 U.S. soy production seen at 3.001 bln bushels, basically unchanged from USDA's July forecast for 3.0 bln. U.S. soy 2008/09 ending stocks seen at 141 mln bushels vs USDA forecast of 140 mln bushels.

SOYOIL - August down 1.70 cents at 50.39 cents per lb.Pressed by weakness in crude, palm oil.

FCPO-JAKARTA, Aug 8 (Reuters) - Malaysian crude palm oil futures tumbled more than 2 percent on Friday as faltering crude oil dimmed prospects for vegetable oil-based biofuels, heightening concerns about slowing demand, dealers said.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange ended 66 ringgit down, or 2.32 percent, at 2,779 ringgit ($842) a tonne on Friday.

REGIONAL EQUITIES-Aug 8 (Reuters) - Most Southeast Asian markets fell on Friday.

Singapore <.FTSTI> and Malaysia <.KLSE> edged 0.9 percent lower, while Jakarta <.JKSE> dipped 0.1 percent.But the Philippines <.PSI> and Vietnam <.VNI> bucked the trend to rise 0.3 and 1.2 percent respectively.

DJI Weekly: Soared to close in best week for more than three months

DJI soared to close in best week for more than three months with a long white candle. We continue to look for the resistance and support at 11924.19 and 11125-11157 level respectively in near term.