Trader's comment: CPO futures surrendered earlier gains to end generally lower

CPO futures surrendered earlier gains to end generally lower due to lack of follow through buying support. Negative news like China and Indian traders had defaulted some contracts due to drop in prices pressuring the market. FCPO prices are still under pressure as fundementals and sentiments remained weak.

FCPO no chance to recover?

FCPO has tried to recover but failed to hold. Selling pressure continue to hammer the already weak market momentum and violated the support at 2530-2520 in intra-day basis. We now pegged the immediate support at 2500 followed by 2460-2450. Resistance is at 2675 followed by 2728-2767 (gap left over on 11th Aug, 2008).

FKLI defended well at 1095

Market recovered to end in positive territory. Market was defended well at 1095. Looks may consolidate in near term. Support pegged at 1095 followed by 1086.5-1083.5. Resistance at 1125.5.

KLSE close off low

KLSE tested the immediate support at 1116-1112 and close off the low. Market may continue its consolidation mode in near term. We look for the support and resistance at 1089 and 1128 level respectively.

FCPO recovered some from yesterday steep fall

FCPO recovered some from yesterday losses. Looks may want to challenge the immediate resistance at 2660-2670 followed by upside gap at 2728-2779. Downside support at 2578-2561 (gap left over this morning).

FKLI recover after found support at 1095

Market recovered after 1095 defended well. Violation of 1095 will see the next support at 1086.5-1083.5. For the the upside, resistance is at 1113.5-1114.

KLSE covered downside gap

Market covered the downside gap left over on end-Jul, 2008 at 1116-1112.5 after the violation of underline support at 1120. Looks may continue to move sideways to lower in near term. We now look for the immediate support at 1102. Immediate resistance is at 1117.

Breaking news-RTRS-India traders default on 150,000 T veg oil-paper

NEW DELHI, Aug 13 (Reuters) - Indian traders have defaulted on vegetable oil purchase deals of around 150,000-200,000 tonnes due to a drop in prices, the Hindu Business Line newspaper said.

Breaking news-RTRS-Pakistan delays some Ramadan palm purchases

KUALA LUMPUR, Aug 12 (Reuters) - Pakistan has delayed some palm oil purchases for the Muslim holy month of Ramadan, after covering 75 percent of its needs, as traders pause to see where plunging prices will stabilise, a trade official said on Tuesday.

Breaking news-RTRS-More palm oil to go for biofuels-OilWorld

HAMBURG, Aug 12 (Reuters) - More palm oil is likely to be used for biofuel production in the near future as falling prices have made it more competitive, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.

Trader's Highlight

DJI-NEW YORK, Aug 12 (Reuters) - U.S. stocks fell on Tuesday, as bank shares tumbled on fresh worries about the economy and further losses stemming from the mortgage crisis. News that JPMorgan Chase has racked up $1.5 billion of losses so far this quarter on mortgage-linked assets sent the bank's stock down more than 9 percent.

The Dow Jones industrial average <.DJI> fell 139.88 points, or 1.19 percent, to 11,642.47, while the Standard & Poor's 500 Index <.SPX> slid 15.73 points, or 1.21 percent, to 1,289.59. The Nasdaq Composite Index <.IXIC> dropped 9.34 points, or 0.38 percent, to 2,430.61.

NYMEX-NEW YORK, Aug 12 (Reuters) - U.S. crude oil futures ended lower for a third day in a row, buffeted by worries about falling demand and a stalled dollar rally after prices rose as oil and gas pipelines running through Georgia were shut.

On the New York Mercantile Exchange, September crude settled down $1.44, or 1.26 percent, at $113.01 a barrel, trading from $112.31, lowest since May 2, to $115.95.

CBOT-SOYBEANS - August up 5 cents at $12.20 per bushel,most-active November up 18 cents at $12.14.Supported by a smaller-than-expected number for soy production in USDA's August crop production report. U.S. soy ending stocks remain tight.

USDA estimated 2008 U.S. soybean production at 2.973 billion bushels, below an average of analysts' estimates for 3.001 billion. USDA lowered its soy yield estimate to 40.5 bushels per acre, down from 41.6 in July. [ID:nDAT001109]

But USDA raised its estimate of harvested soybean acres to 73.3 million, up from 72.1 million in July.

SOYOIL - August down 0.58 at 49.83 cents per lb.Following a drop in crude oil. Market underpinned by firm trend in soybeans after USDA's August crop report.

FCPO-KUALA LUMPUR, Aug 12 (Reuters) - Malaysian crude palm oil futures fell as much as 4.1 percent on Tuesday to hit a fresh 10-month low as faltering crude oil prices and expectations of higher global stocks pressured vegetable oil prices.

The benchmark October contract fell on the Bursa Malaysia Derivatives Exchange as much as 110 ringgit to 2,561 ringgit ($770.9) per tonne, breaking well past a key resistance level of 2,600 ringgit for the first time this year.

REGIONAL EQUITIES-Aug 12 (Reuters) -Economic growth worries weighed on Southeast Asian markets.Malaysia <.KLSE> fell 0.8 percent,Singapore <.FTSTI> edged 0.3 percent lower while the Philippine index <.PSI> eased 0.5 percent lower.

DJI losing ground after rebound for two days

DJI losing ground after market unable to break through the recent high at 11867. Market may due for consolidation in near term. We look for the immediate support at 11520-11510. Resistance is at 11867.