Trader's Comment: CPO futures hit fresh low and close with triple digit losses

CPO futures tumbled with triple digit losses as tracking sharp losses in Dalian Commodities Exchange on soyoil and palm oil. NYMEX crude oil coupled with e-CBOT traded in Asian time zone also added pressure to the local front. Benchmark Nov 08 initially opened RM 48 lower at 2421 had failed to hold ground after hit the high at 2427. Speculative selling interest dragged prices to violate the 2400 levels and dipped to the low at 2367 before closing at 2379, down RM 90 by midday break. James Fry a London-based industry analyst, told Reuters on the sidelines of an industry seminar in Singapore that the price of Malaysian crude palm oil is expected to hover around USD700 per tonne during the next six months. Selling pressure getting heavier and lack of buying support saw Nov 08 hit the fresh year low at 2346 before settling RM 115 lower at 2354. Total volume increase to 17,482 contracts changed hands. 1-10 Sept 08 export figures by private cargo surveyors and also MPOB August demand and supply data will be released tomorrow. Market talk that 1-10 Sept 08 export data was roughly at 417,000 tonnes.

FCPO: fresh low at 2346

Market hit the fresh low at 2346 had dampened further the already weak market momentum. Looks may continue to move lower in near term. We now look for the immediate support at 2315-2320 followed by 2235-2240. For upside, immediate resistance is at 2427-2451 (gap left over today).

FKLI: surrender some of the yesterday gains

Market surrendered some of the yesterday gains with prices covered full of the downside gap left over at 1049-1055. We now look for the support at 1036. for upside, resistance at 1075-1080.

KLSE: target support at 1064 mark

Market failed to hold ground at 1070 mark and eased off to close weak. Looks may continue to target the support at 1064. for upside, resistance is at 1081-1083 (gap left over on 5 Sept, 2008).

Breaking News-RTRS-Malaysian CPO prices seen around USD 700/T in next 6 months- Fry

SINGAPORE, Sept 9 (Reuters) - The price of Malaysian crude palm oil is expected to hover around $700 per tonne during the next six months, leading industry analyst James Fry said on Tuesday.
"Biofuels have become attractive again, that is one thing which will support prices. CPO is now cheap," Fry, a London-based industry analyst, told Reuters on the sidelines of an industry seminar in Singapore.
"Palm oil prices are likely to hover around $700 per tonne until February next year as the demand for biofuels will support prices," Fry said. "Palm oil prices will find support around 2,300 ringgit because of the biofuels demand, unless crude oil falls faster than I think."

Breaking News-RTRS-India may up palm oil import duty in Oct./Nov-Mistry

SINGAPORE, Sept 9 (Reuters) - India is likely to raise its import duty on palm oil and palmolein as cheap imports have hit consumption of domestic oils and threaten to discourage farmers from planting oilseeds, a leading industry analyst said.

Import duty on crude palm oil may be raised to 10 percent from zero, while the levy on RBD palmolein is likely to be doubled to 15 percent, Dorab Mistry told Reuters on the sidelines of an industry conference.

FCPO hourly: 2400 mark violated

Market continue to move sideways to lower following 2400 mark violated. Immediate support is at 2351 and resistance is at 2427-2452 (gap left over this morning).

FKLI hourly: profit taking

Profit taking activities were evident after yesterday's rallied and looks may want to cover the downside gap left over at 1040-1055. For upside, resistance is at 1073.

KLSE hourly: easing off

Market eased off reverse from yesterday rallied. We continue to look for the downside support at 1064. While, resistance is at 1081-1084 (gap left over on 5 Sept, 2008).

Breaking News-RTRS-China 08/09 soybean imports 38 mln T-USDA attache

WASHINGTON, Sept 8 (Reuters) - China soybean imports in 2008/09 are forecast to increase to 38 million tonnes from 35.5 million tonnes a year earlier, a U.S. Agriculture Department attache in Beijing said in a report released on Monday.

Trader's Highlight

DJI-NEW YORK, Sept 8 (Reuters) - U.S. mortgage rates fell on Monday after the government seized control of Fannie Mae and Freddie Mac, raising hopes the plan would provide at least temporary respite from troubles in housing and credit markets.

The Dow Jones industrial average surged 293.52 points or 2.6 percent, while the FTSEurofirst stock index closed up 3.3 percent.

NYMEX-NEW YORK, Sept 8 (Reuters) - U.S. crude oil futures edged higher on Monday after a volatile trading session where crude was tugged back and forth by fears of another hurricane entering the Gulf of Mexico and a surge in the value of the dollar.

NYMEX October WTI futures settled up 11 cents at $106.34 a barrel after trading between $104.70 and $109.89.

CBOT-SOYBEANS - September up 14-1/2 cents at $11.94-1/2 per
bushel, November up 15 at $11.92.Technical bounce after dipping to five-month low last week.

SOYOIL - September up 0.35 cent per lb at 48.53 cents per lb; December up 0.35 cent at 49.24.Supported by rally in soybeans.

FCPO-JAKARTA, Sept 8 (Reuters) - Malaysian crude palm oil futures finished little changed on Monday as traders awaited the midweek release of export data, dealers said.

The benchmark November crude palm oil contract on the Bursa Malaysia Derivatives Excange settled down 1 ringgit, or 0.04 percent, to 2,469 ringgit ($719) a tonne.

REGIONAL EQUITIES-SINGAPORE, Sept 8 (Reuters) - Singapore stocks led gains in
Southeast Asia, boosted by financial and property shares, as the U.S. government launched a bail-out of troubled U.S. mortgage firms, easing credit worries and sending global equities higher.

In the region, Thailand gained 3.1 percent on energy and bank shares, while Malaysia added 0.5 percent.Indonesia rose 0.8 percent and the Philippine index edged up 0.1 percent.

Most analysts believe the relief is temporary and expect more volatility in Singapore and other Southeast Asian markets as the global slowdown cuts corporate earnings growth.

DJI: bullish reversal mark a support

Support confirmation followed by a long white candle printed had strengthened further the immediate daily technical landscape. As for now, we look for the immediate support at 11037 and upside resistance at 11700-11715.

Trader's Comment: CPO futures ended mix due to lack of fresh leads

Substantial losses in rival soyoil in CBOT last Friday but recovered in e-CBOT trading during Asian trading time zone provide no clue to the market. Steady crude oil prices provided some support to the palm market. Basically, the market just lack of fresh factors. Benchmark Nov08 settled RM1 lower at 2469 after trading between 2451 to 2493. Whereas, second month Oct08 settled RM8 higher at 2470 after trading between 2445 to 2485. Daily volumes were moderate with 8,910 contracts changed hands. Morning session was suspended due to technical glitch detected in the morning. It resumed trading in the afternoon session after resolved.

FCPO: remains sideways

Market extended its consolidation phase to move bias sideways. 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.