Trader's Comment: CPO futures eked out a modest gain

CPO futures eked out a modest gain. Benchmark Nov 08 initially opened flat at 2450 due to overnight CBOT soyoil was about in line with e-CBOT yesterday coupled with NYMEX crude oil steady at USD 109/ barrel. Short covering activities emerged as 2440 level was defended well and saw Nov 08 recovered to hit intra-day high at 2492 before it close at 2480, up RM 29 by midday break. Market momentum improved further in afternoon session on follow through buying interest. Prices were then slowly inching higher to trigger the day high at 2515 before settling RM 59 higher at 2510. Total daily volume stood at 9663 contracts changed hands.

FCPO stayed firm above 2400 mark

Market firm above 2400 mark with positive closing. Nevertheless, more strength is needed in order to stay out from the current rangy mode. We continue to look for the immediate support at 2400-2390 followed by 2351. For upside, immediate resistance is at 2550-2560 followed by 2600-2620.

Disappointed bear rebound in FKLI

Disappointing bear rebound with a long upper shadow candle printed after prices failed to sustain at the higher end to close off the low in negative territory. Consolidation phase is likely to continue. We continue to look for the support at 1046.5-1048. For upside, resistance remained at 1092.5. A breakout from the either one may give more clearer direction to the market.

KLSE moves in tight range

Market tested the immediate resistance at 1087-1088 in intra-day basis but unable to sustain at close. Range trading likely to continue in near term. We continue to look for the downside support at 1064.11-1049.88. For upside, resistance is maintained at 1100.5

FCPO Hourly: in consolidation phase

Market continue its consolidation phase with immediate upside resistance at 2550-2560 followed by 2600-2615. For downside, immediate support is pegged at 2390-2395 followed by 2351.

FKLI Hourly: extended in range trading

Nothing much changes on the immediate technical outlook as prices traded in tight range. We continue to look for the support and resistance at 1046.5-1048 and 1092 level respectively.

KLSE Hourly: market stayed firm

Market move in tight range and stayed firm above 1080 level. We continue to look for the downside support at 1064. For upside, immediate resistance at 1087-1088 followed by 1097.

Breaking News-RTRS-China to cap soy crushing capacity as imports grow

BEIJING, Sept 3 (Reuters) - China will close small soybean crushers while restricting expansion by big plants as it seeks to consolidate the over-crowded industry in the world's top soybean importer.The National Development and Reform Commission will cap soy processing capacity at 75 million tonnes a year in 2010 and further reduce that to 65 million tonnes in 2012, it said in a report on the industry.

Breaking News-RTRS-Argentine truckers to extend grains port blockades

BUENOS AIRES, Sept 2 (Reuters) - Argentine grains truckers said on Tuesday they would extend a six-day-old pay protest against leading exporters to the port of Quequen, deepening a strike that threatens to disrupt shipments.

Breaking News-RTRS-Interview-Malaysia to launch dollar crude palm oil futures

KUALA LUMPUR, Sept 3 (Reuters) - Malaysia's stock exchange operator, Bursa Malaysia will launch its first dollar-denominated palm oil futures contract this week despite heightened volatility in commodity markets.

Breaking News-RTRS-Update-Asian palm seen climbing to 2,900 rgt by Dec-Mielke

SIEM REAP, Cambodia, Sept 3 (Reuters) - Malaysian crude palm oil futures are rise about 18 percent to 2,900 ringgit ($844.5) per tonne by December on strong demand and lower output yields, top industry analyst Thomas Mielke said on Wednesday.

Trader's Highlight

DJI-NEW YORK, Sept 3 (Reuters) - The S&P 500 and the Nasdaq fell on Wednesday as signs of increasingly sluggish growth in the United States and the rest of the world rattled investors already unsettled about the outlook for consumer spending and corporate profits.The Dow eked out a modest gain, however, helped by Home Depot. The home improvement retailers' shares rose 4.5 percent after its chief executive said the battered U.S. housing market's decline may be nearing an end.

The Dow Jones industrial average rose 15.96 points, or 0.14 percent, to 11,532.88, while the Standard & Poor's 500 Index dropped 2.59 points, or 0.20 percent, to 1,274.99.The Nasdaq Composite Index was down 15.51 points, or 0.66 percent, at 2,333.73.

NYMEX-NEW YORK, Sept 3 (Reuters) - U.S. crude oil futures ended lower on Wednesday, but losses were pared in late trading as gasoline futures shifted higher ahead of weekly inventory data that was forecast to show a draw in gasoline stocks.Crude futures were pressured early by a surging dollar and continuing worries about weakening demand. Near the close, the government reported a slight recovery in Gulf of Mexico oil production.

On the New York Mercantile Exchange, October crude settled down 36 cents, or 0.33 percent, at $109.35 per barrel, trading from $107.22 to $110.30.

CBOT-SOYBEANS - September down 50-1/2 cents at $12.51 per bushel, new-crop November down 47 at $12.51-1/2 on spillover weakness from crude oil, firm dollar and forecasts for rains in the U.S. Midwest at midweek

SOYOIL - September down 1.55 cents at 50.48 cents per lb.Following declines in soybeans and crude oil.

USD-NEW YORK, Sept 3 (Reuters) - The U.S. dollar rose slightly on Wednesday and earlier touched its highest against the euro since January, on growing expectations the U.S. economy would outperform that of Europe.The dollar briefly extended its gains versus the euro after a government report showed U.S. factory orders rose more than expected in July, adding to signs of resilience in the U.S. economy.

FCPO-KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended 1.3% lower Wednesday, failing to hold on to early gains as investors liquidated positions and resorted to profit-taking.

The benchmark November contract on Bursa Malaysia Derivatives ended MYR33 lower at MYR2,451 a metric ton, off an intraday high of MYR2,550.

REGIONAL EQUITIES-SINGAPORE, Sept 3 (Reuters) - Most Southeast Asian markets fell on Wednesday, weighed down by commodity-related stocks as oil prices retreated, but Vietnam rose on hopes of easing inflation.

Indonesia fell 2 percent to its lowest in a week due to a sharp pullback in resource stocks, while Singapore fell 1.9 percent on commodity related stocks.Malaysia edged 0.2 percent lower, while Thai stocks fell 1.5 percent on ongoing political uncertainty as anti-government protesters continued their sit-in at the prime minister's official compound.

DJI in sideways move

DJI tested the resistance at 11690-11700 but unable to sustain at higher end. Looks market likely to extended its sideways move in near term. We continue to look for the the support at 11221-11210. For upside, resistance is at 11867.