Trader's Comment: CPO futures sunk further as influence by external weak market.

Soyoil in e-CBOT tumbled and loss 170 points which Dalian palm and soyoil both closed limit down. Re-emerge talks that China may cut import taxes for cooking oil prompted the selling in Dalian commodity exchange. Generally market sentiment still weak as players concerns over higher production and to be peak in October. Traditionally, weather in USA also ideal for the crop. Technical selling resumed after last week's rebound from 2351 to 2753 and unable to sustain. This had given the bear to reclaim the selling.

FCPO erased all its earlier gains

FCPO surrendered all its earlier gains with a long black candle printed. Looks may want to test the recent low at 2351. For upside, resistance is at 2675-2688.

FKLI looking for firm support at 1045.5-1048

Underline support at 1045.5-1048 was holding firm and looks may continue to cushion the market downside momentum. For upside, resistance is at 1080-1083.

KLSE managed to defend from lower end?

The overall daily technical landscape remained bearish and market is trying to defend. We look for the underline support at 1064.58-1049.88. For upside, resistance is at 1090.

Breaking News-RTRS-Indonesian palm exporters re-negotiating contracts after market fall, defaults minimal

JAKARTA, Aug 26 (Reuters) - Indonesian palm oil exporters are re-negotiating prices of export contracts signed before the sharp price fall and large-scale defaults are unlikely, the executive chairman of the country's leading palm oil industry body said on Tuesday.

Derom Bangun of the Indonesian Palm Oil Producers' Association said the country's overall palm oil exports were likely to rise by 10 percent in 2008, from last year's 13 million tonnes, despite the volatility in the market.

"Biodiesel producers are building up stocks now, after the market crash. If crude oil rises a bit more, biodiesel producers will find it profitable to resume production," Bangun told Reuters in an interview.

Breaking News-DJ INTERVIEW: CPO Prices MYR2,400-MYR2,800 Sep-Dec '08 -Exec

KUALA LUMPUR (Dow Jones)--Crude palm oil prices will likely hover between MYR2,400 and MYR2,800 a metric ton over the next four months as large inventories are currently weighing on the market, a senior industry executive said Monday.

FCPO losing ground as failed to sustain at higher end

Market is losing ground after prices failed to sustain at higher end. Prices gap down and ended weak. Market may continue to look for a range to consolidate in near term. We look for the upside resistance at 2675-2688 (gap left over yesterday). For downside, support is pegged at 2513.

FKLI extended its consolidation phase

Market is facing overhead resistance at 1089.5-1083 and support is pegged at 1048-1046.5. Consolidation phase likely to continue in near term.

KLSE in range bound mode

Market may continue to trade in range between 1096 to 1064.5 in near term.

Breaking News-RTRS-Interview-India seeks 900,000 T vegoils in Sept, Oct

* India may import 900,000 tonnes of vegoils in Sept, Oct

* India soy output may exceed 10 mln T if monsoon revives

* Country may re-impose import tax on vegoils from mid-Oct

RTRS-M'sia palm could slide to 2,200 ringgit -Mistry

KUALA LUMPUR, Aug 25 (Reuters) - Malaysian crude palm oil futures could slide as far as 2,200 ringgit per tonne before triggering fresh demand, as ideal weather extends the main growing season, a leading industry analyst said on Monday

But Dorab Mistry cautioned that the forecast only applied if struggling oil prices stabilise around $100 a barrel.

Breaking News-DJ INTERVIEW:Pakistan Wants More Malaysian Crude Palm Oil -Exec

KUALA LUMPUR (Dow Jones)--Pakistan is seeking a larger supply of palm oil in crude form from Malaysia instead of refined palm olein due to the creation of fresh domestic refining capacity, Karachi-based Inam Bari, director of Dalda Foods, said Monday.

Breaking News-RTRS-Interview-KL Kepong to plant 10,000 ha of oil palm yearly in Indonesia

-KL Kepong to plant 10,000 ha of oil palm yearly in Indonesia
-Invested 200 mln ringgit in biofuel softening plant
-Defers $300 mln bond issue due to bad market conditions