FCPO: physiological support at 2000 managed to defend?

Market violated the support at 2062 and sank to fresh year low again. We are watching closely on the physiological support at 2000. The next support will be followed by 1827 (low since Dec, 2006). For upside, resistance remained at 2180-2240 (gap left over on 16th Sept, 2008).

Trader's Comment: CPO futures slump further after it failed to defend 2080 to 2100 level

CPO futures slump further after it failed to defend 2080 to 2100 level. Earlier, prices were trading between the narrow ranges of 2105 to 2145 in choppy manner throughout most of the session. Tracking a recovery in NYMEX crude oil price which is up about USD2.00 to USD3.00 during Asian time zone. However, prices begin to slide and loss more ground after it failed to defend yesterday’s low around 2077-2080 level in late trading hour. Then, it dived to hit 2039 before it settled RM80 lower at 2040 with total daily volume at 18,106 contracts changed hands. Market sentiment remains weak and destination market also quiet.

Breaking News-RTRS-India's soybean outputseen at record 12 million tonnes

NEW DELHI, Sept 17 (Reuters) - India is expected to produce a record 12 million tonnes of soybeans in 2008, helping it export an all-time high 6 million tonnes of soymeal in the crop year from October, a top industry official said.

Breaking News-RTRS-India seeks to defer 25,000 tonnes of palm oil

KUALA LUMPUR, Sept 17 (Reuters) - Indian palm oil buyers have asked Malaysian and Indonesian suppliers this week to defer 25,000 tonnes of crude palm oil meant for September delivery to October and November, Indian traders said on Wednesday.

FCPO: is searching for support

Market gave up early gains to end in negative territory by midday break. We continue to look for the immediate support at 2062 followed by 1827 (low since Dec, 2006). While, resistance is at 2180-2240 (gap left over on 16th Sept, 2008).

FKLI: fail to rebound

Market failed to rebound and violated the 1000 mark again. We continue eyeing the next support at 970-960 level. While, immediate resistance is at 1036-1038.

KLSE: struggling around 1000 mark

Market tested 1000.41 in afternoon before closing at 1002.99. Market momentum remained under pressure. We continue to look for the physiological support at 1000 followed by 970. For upside, resistance pegged at 1016-1026 (gap left over on 16th Sept, 2008).

Breaking News-RTRS-AIG expects to repay $85billion loan in full, remain "substantial" market participant

Sept 16 (Reuters) - American International Group Inc's board of directors, in a statement on the announcement by the U.S. Federal Reserve of an $85 billion secured revolving credit facility
* Says expects proceeds of asset sales to be sufficient to repay loan in full
* says "policyholders of its companies around the world can rest assured that AIG's commitments will continue to be honored"
* Says expects its businesses to continue as "substantial participants" in their respective markets

Breaking News-RTRS-Federal Reserve on Tuesday regarding insurer American International Group Inc :

The Federal Reserve Board on Tuesday, with the full support of the Treasury Department, authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG) under Section 13(3) of the Federal Reserve Act. The secured loan has terms and conditions designed to protect the interests of the U.S. government and taxpayers.

Breaking News-RTRS-Middle East, China Buyers Default On Palm Oil Buys

KUALA LUMPUR (Dow Jones)--Buyers in China and the Middle East have defaulted
on the purchases of more than 100,000 metric tons of palm oil after the latest
slump in prices, trade executives said Tuesday.
"Importers in the Middle East have reneged on a contract for September
shipment of around 30,000 tons of palm oil," said a Jakarta-based trading
executive.
He said the shipment was for volumes purchased by a few buyers but for
delivery in a single cargo.
There have also been defaults by buyers in China during the last few days, to
the extent of at least 50,000 tons, he added.
Traders said there are many other such instances, but details weren't
immediately available.

Trader's Highlight

DJI-NEW YORK, Sept 16 (Reuters) - U.S. stocks rebounded on Tuesday, clawing back a day after their biggest drop in seven years on growing optimism that U.S. authorities may finance a rescue of insurer American International Group .

But hopes for a rescue that would serve to calm global financial markets roiled by a streak of Wall Street disasters, including the bankruptcy of Lehman Brothers, faded after the closing bell sending stock index futures lower.

AIG shares fell 48 percent after the bell after Bloomberg reported that the United States was considering conservatorship as an option for the insurer, while the New York Times said AIG had hired a bankruptcy law firm.

The Dow Jones industrial average <.DJI> rose 141.51 points, or 1.30 percent, to close at 11,059.02, while the Standard & Poor's 500 Index <.SPX> gained 20.90 points, or 1.75 percent, to 1,213.60. The Nasdaq Composite Index <.IXIC> was up 27.99 points, or 1.28 percent, at 2,207.90.

The Federal Reserve held its key benchmark U.S. interest rate steady on Tuesday, opting for the time being to soothe rattled financial markets with central bank lending facilities rather than rate cuts.

NYMEX-NEW YORK, Sept 16 (Reuters) - U.S. crude oil futures ended nearly 5 percent lower on Tuesday, down for the second day in a row, as investors continued to seek safer havens amid continued turmoil in global financial markets that's seen further
undermining fuel demand.

On the New York Mercantile Exchange, October crude settled down $4.56, or 4.76 percent, at $91.15 a barrel, the lowest since Feb. 8, after trading from $90.51, also the lowest since that date, to $94.32.

CBOT-SOYBEANS - November down 55 cents at $11.24 a bushel.Pressured by worsening global financial crisis leading to spillover selling in soy complex and other commodities.Weakening crude oil weighs.

SOYOIL - October down 2.48 cents at 43.60 cents per lb.Front two contracts fell the 2.50-cent limit on pressure from falling crude oil and deepening global financial crisis.

FCPO-KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended 5.7% lower Tuesday, after falling to their lowest level in more
than 17 months, as investors took leads from the weakness in crude oil.

The new benchmark December contract on the Bursa Malaysia Derivatives ended
MYR129 lower, at MYR2,120 a metric ton, off an intraday low of MYR2,077/ton, on
short covering.

REGIONAL EQUITIES-SINGAPORE, Sept 16 (Reuters) - Thai stocks fell to a 20-month
low on Tuesday, leading losses in Southeast Asia, as financial upheavals on Wall Street sent shockwaves through global and Asian stock markets.

Malaysia <.KLSE> gave up 1.9 percent as slumping crude oil prices hit palm oil plantation stocks, while the Philippines <.PSI> sank 4.5 percent and Vietnam <.VNI> slipped 4.4 percent.

DJI: rebound and recover after tested the recent low at 10827

Market rebound and recover after tested the recent low at 10827. However, the overall technical landscape remained bearish. We look for the support at 10680-10660 and resistance remained at 11440-11490.