Trader's Comment: Malaysia palm oil prices failed to sustain yesterday’s gain amid weaker crude oil prices.

Malaysia palm oil prices failed to sustain yesterday’s gain amid weaker crude oil prices. Benchmark Jan09 open RM77 lower at 1589, following overnight crude oil fell almost $4 a barrel, caused by more fears on weaken oil demand. It hit the morning low of 1575, thereafter trading at a narrow range of 1610-1581 till afternoon session. A prominent research house, Macquarie Research, had stated that CPO prices could be trading at $400 a tonne in 2009 (which is equivalent to around RM1400 based on today’s exchange rate) due to falling price of crude mineral oil and also rising stock level in Malaysia and Indonesia. In the later part of afternoon session, CPO prices encountered another fall. Benchmark Jan09 tumbled to hit intra day low of 1546, but it rebounded a little to settle at 1578 after some short covering activities emerged. News that Indonesia stock level could increase 67% this year had also added onto the already weak sentiment in the market.

FCPO Daily: trade in yo-yo manner

Market traded in yo-yo manner and directionless following prices ended in negative territory today after yesterday of 10% daily limit up. Looks market is entering back to a consolidation mode again. We now look for the immediate upside resistance at 1666 followed by 1727-1734 (gap left over since 15 Oct, 2008). For downside, support is at 1539-1546 (gap left over since 31 Oct, 2008) followed by 1441-1491 (gap left over since 29 Oct, 2008).

FKLI Daily: bear rebound

Market tested the intra-day high at 907.5 but not closing and ended with straight 4 days of positive close. However, market is still stayed below the mid-term downtrend zone and this could be a bear rebound. As for now, we look for the upside resistance at 918-920 followed by 931-944 (gap left over since 15 Oct, 2008). For downside, support is at 871.5 followed by 862.5.

KLSE Daily: stayed firm at above 900 mark

Immediate daily technical had further improve following market manage to stay firm above 900 mark. We look for the upside resistance at 913-920. For downside, support is pegged at 880-867.

Breaking News-RTRS-INTERVIEW-Indonesia's end-08 palm oil stocks seen up 67 pct

JAKARTA, Nov 4 (Reuters) - Stocks of crude palm oil in Indonesia, the world's largest producer of the commodity, could swell 67 percent this year, boosted by higher output and defaults by foreign buyers, an industry official said on Tuesday.
"I am looking at a stock level of around 1.9-2.0 million tonnes by the year-end. It is around 800,000 tonnes bigger than last year," Akmaluddin Hasibuan, chairman of the Indonesia Palm Oil Producers Association (GAPKI), told Reuters by telephone.
Stock levels hit 2.4 million tonnes in October because of the defaults, but had gradually declined to about 2 million tonnes as export shipments had resumed, Hasibuan added.

Breaking News-RTRS-MALAYSIA'S FINANCE MIN SAYS 2008 GDP GROWTH LIKELY AT LEAST 5 PCT

16:53 04Nov08 RTRS-MALAYSIA'S FINANCE MIN SAYS 2008 GDP GROWTH LIKELY AT LEAST 5 PCT
16:55 04Nov08 RTRS-MALAYSIA SAYS 2009 GDP GROWTH SEEN AT 3.5 PCT
16:55 04Nov08 RTRS-MALAYSIA SAYS 2009 FISCAL DEFICIT SEEN AT 4.8 PCT
16:58 04Nov08 RTRS-Malaysia slashes growth forecasts, ups deficit
16:59 04Nov08 RTRS-MALAYSIA SAYS WILL ADOPT EXPANSIONARY BUDGET POLICY
KUALA LUMPUR, Nov 4 (Reuters) - Malaysia's government reduced its 2009 economic growth forecast to 3.5 percent from a prior forecast of 5.4 percent and upped its budget deficit target for the year to 4.8 percent of gross domestic product from 3.6 percent.
Najib Razak, who is both deputy prime minister and finance minister, made the announcement in parliament on Tuesday at the end of the budget debate.

Breaking News-RTRS-BRIEF-Palm oil price seen at $400/t in 09-Macquarie

KUALA LUMPUR, Nov 4 (Reuters) - Crude palm oil price (CPO)
could average at $400 a tonne in 2009, dragging down planters'
earnings by 61 percent on average, said Macquarie Research.
The bank said in a report that Indonesian plantation company
Bakrie Sumatra will be the worst hit with a 90 percent
decline, with Singapore-listed Wilmar the least
affected, with a 26 percent year-on-year fall in FY2009 earnings,
said Macquarie in a strategy note issued last week.

Breaking News-RTRS-Brazil new crop soy sales flat on week -Celeres

SAO PAULO, Nov 3 (Reuters) - Forward sales of Brazilian
soybeans stood at 19 percent of the 2008/09 crop by Oct. 31,
unchanged from the prior week as the lack of credit and market
volatility stifles sales, analysts Celeres said on Monday.
The new crop is seen at 61.7 million tonnes, according to
Celeres' latest forecast, unchanged from October's forecast.
Forward sales are still well behind last year at this time
when 31 percent of the expected crop was already sold.
Volatility on the world financial markets has dried up credit
lines that producers, exporters and trading houses use to
finance the planting, harvesting and sales of the crop.

Breaking News-PREVIEW-No big spending plans from Malaysia's PM to be

KUALA LUMPUR, Nov 3 (Reuters) - Malaysia's prime minister in waiting is set to announce plans to aid the economy on Tuesday, although few economists expect any big pump-priming measures as the country prepares for an export-led growth slowdown.
Najib Razak, deputy prime minister and finance minister, has already said economic growth will likely be cut from the 5.4 percent planned for next year and that the budget deficit will rise from the 3.6 percent of gross domestic product expected in 2009.

Breaking News-RTRS-India to decide on veg oil import tax on Tuesday

NEW DELHI, Nov 3 (Reuters) - Indian ministers will consider on Tuesday whether to raise import taxes on edible oils and allow exports as a slide in global prices threatens local producers, a leading trade official said.

Trader's Highlight

DJI-NEW YORK, Nov 3 (Reuters) - U.S. stocks ended little changed on Monday as investors picked up bargains on signs of further thawing in credit markets, but were unwilling to place big bets before the presidential election.

Cautious investors stayed on the sidelines as they were reluctant to buy equities in significant amounts ahead of an election that could play a role in the market's direction in the years ahead.

The Dow Jones industrial average <.DJI> edged down 5.18 points, or 0.06 percent, to 9,319.83. The Standard & Poor's 500 Index <.SPX> was off 2.45 points, or 0.25 percent, at 966.30. The Nasdaq Composite Index <.IXIC> added 5.38 points, or 0.31 percent, to 1,726.33.

NYMEX-NEW YORK, Nov 3 (Reuters) - U.S. crude futures ended nearly $4 a barrel lower on Monday, driven lower by more worries about oil demand as signs of a slowing global economy increased and as gasoline futures slid to a fresh 21-month low.

The dollar's bounce off lows against the euro and OPEC beginning to implement its latest production cut of 1.5 million barrels per day also pressured crude futures.

On the New York Mercantile Exchange, December crude settled down $3.90, or 5.75 percent, at $63.91 a barrel, trading from $63.63 to $69.19.

CBOT-SOYBEANS - November up 3 cents at $9.28-1/4 per bushel; January up 4-1/2 cents at $9.37-1/2.

Strong weekly export inspections data lifted futures, underscoring recent Chinese demand. Firm cash markets added support as U.S. farmers remain reluctant sellers.

CBOT-SOYOIL - December up 1.14 cent at 34.74 cents per lb. Soy products gained against soybeans as crush spreads corrected from Friday's close. Following limit -up moves in palm oil <0#KPO:> and Dalian soyoil <0#DBY>.

FCPO-KUALA LUMPUR, Nov 3 (Reuters) - Asian vegetable oil prices soared on Monday, taking their cues from crude oil which gained on improved financial markets.

However, traders said the scenario remained weak amid sluggish demand and a build-up in vegetable oil stock levels as the global economy slows. Malaysian crude palm oil futures <0#KPO:> hit 10 percent limit up at a near two-week high towards the end of the session,

The benchmark January palm contract on Bursa Malaysia's Derivatives Exchange jumped as much as 10 percent ringgit to 1,666 ringgit ($473.6), a level unseen since Oct 21.

Regional Equities-BANGKOK, Nov 3 (Reuters) - Southeast Asia stocks ended near two-week highs on Monday, with Jakarta and Bangkok jumping more than 7 percent after benign inflation data and hopes of interest rate cuts.

The Thai main stock index <.SETI> rose 7.8 percent. Jakarta's main stock index <.JKSE> gained 7.6 percent. Singapore stocks <.FTSTI> ended up 5.0 percent, Malaysia
<.KLSE> rose 4.1 percent, Vietnam stocks <.VNI> edged up 0.5 percent and Philippines stocks <.PSI> gained 3.8 percent.

DJI Daily: sideways

DJI in sideways move. We continue to look for the resistance at 9794 followed by 10322 and support is pegged at 7882.