Trader's Comment: CPO futures surrender some of its earlier gain

CPO futures surrender some of its earlier gain after crude oil prices encounter some profit taking activities during Asian time trading. Benchmark Jan09 initially open RM71 higher at 1649, tracking overnight NYMEX crude oil that ended more than $6 higher, as traders begin to place higher expectations that OPEC members will comply with their recent decision to cut oil production, coupled with the weakening of dollar. Furthermore, India had also decided to delay their decision on re-imposing import duties on crude vegetable oil. This had caused CPO prices to shoot up and hit intra day high of 1723 (+145 from yesterday’s settlement) immediately market opened. Nevertheless, this sharp move had attracted some profit taking activities to take place. Together with the victory of Democrat Barack Obama, dollar began to gain back strength and this caused commodities market to ease off. Asian time crude oil also fell around $3 due to certain profit taking activities. Benchmark Jan09 started to tumble for the rest of the day, and hit intra day low of 1626 during afternoon session, before it settled at 1640.

FCPO Daily: directionless

Market direction remains unclear following the recent yo-yo trading. We continue to look for the resistance at 1727-1734 (gap left over since 15 Oct, 2008). Support is pegged at 1626-1610 (gap left over today) followed by 1546-1539 (gap left over since 31 Oct, 2008).

FKLI Daily: losing strength

Market momentum looks losing a little strength as market close near to day low. A straight 5 days rallied did helped to improve the immediate technical landscape. However, it was not enough as more buying support is needed to stay out from the mid-term downtrend line. For now, we look for the upside resistance at 931-944 (gap left over since 15 Oct, 2008). Downside support is at 888.

KLSE Daily: close off the high

Market close off the high. Immediate technical landscape has been improve but more strength will be needed to breakout from the current downtrend. As for now, we look for the upside resistance at 932-946 (gap left over since 15 Oct, 2008). Downside support is pegged at 913-910 (gap left over today)followed by 889-888.

Market Outlook 2009

Title: Market Outlook 2009
Date: 13th December 2008
Time: 9.30am - 1.00pm
Venue: 11th Floor, Junior Auditorium, Plaza OSK, Jalan Ampang, 50450, Kuala Lumpur
Fees: Free of Charge(Refreshments will be provided)

To participate, kindly make RSVP with Ryan Chua or Ahmad Lokman at 03-27332238 / 03-21615489 or via e-mail at palmdesk@osk.com.my before 28 November 2008. Early registration is highly recommended due to limited seats.

Breaking News-RTRS-World more dependent on Latam soybeans -Oil World

HAMBURG, Nov 4 (Reuters) - The global soybean market will become increasingly dependent on South American supplies in coming months, following a lower-than-expected U.S. soybean crop, Hamburg-based oilseeds analysts Oil World said on Tuesday.
The U.S. Department of Agriculture on Oct 28 reduced its forecast of the U.S. soybean crop by 1.5 percent in an unprecedented correction.

Breaking News-RTRS-Consumer buying may raise soybean prices-Oil World

HAMBURG, Nov 4 (Reuters) - Low global soybean prices may stimulate more industry buying in the near future which in turn could help raise prices, Hamburg-based oilseeds analysts Oil World said on Tuesday.

Breaking News-RTRS-India defers move to tax edible oil imports-govt

NEW DELHI, Nov 4 (Reuters) - India has decided not to impose any import tax on crude vegetable oil imports for now, trade minister Kamal Nath told reporters late on Tuesday.
The issue was discussed by farm minister Sharad Pawar, finance minister Palaniappan Chidambaram and other policy makers in meeting that lasted over two hours.

Trader's Highlight

DJI-NEW YORK, Nov 4 (Reuters) - U.S. stocks rose in the biggest Election Day rally ever on Tuesday, as investors looked forward to the end of the uncertainty surrounding the long fight for the White House, and as energy companies'
shares followed oil prices higher.

Adding to the positive tone, the Treasury Department is exploring how to best expand its capital injection program and is considering specialty finance firms, such as General Electric's GE Capital unit, a source familiar with the government's thinking said. Shares of GE, an economic bellwether and a Dow component, rose more than 7 percent.

The Dow Jones industrial average <.DJI> rose 305.45 points, or 3.28 percent, to 9,625.28. The Standard & Poor's 500 Index <.SPX> jumped 39.45 points, or 4.08 percent, to 1,005.75. The Nasdaq Composite Index <.IXIC> gained 53.79 points, or 3.12 percent, to 1,780.12.

NYMEX-NEW YORK, Nov 4 (Reuters) - U.S. crude futures ended more than $6 higher on Tuesday on signs that OPEC members were cutting production to comply with their recent decision. A weaker dollar and stronger equities also lifted crude futures, offsetting demand worries.

On the New York Mercantile Exchange, December crude settled up $6.62, or 10.36 percent, at $70.53 a barrel, trading from $62.25 to $71.77.

CBOT-SOYBEANS - November up 21-1/4 cents at $9.49-1/2 per bushel; January up 21-1/2 at $9.59. Outside markets rally the soy complex. Recent export demand adds support. But market closed off the day's highs, with some commercial selling was noted, possibly farmer hedging.

Informa pegs 2008 U.S. crop at 2.987 billion bushels, down from its October estimate of 3.001 billion. USDA estimates 2.938 billion. FC Stone projected the U.S. soybean crop at 2.916 billion bushels, up from its October figure of 2.889 billion; yield
seen at 39.2 bushels per acre.

CBOT-SOYOIL - December up 1.23 cent at 35.97 cents per lb. Rally in crude oil boosts soyoil, with soymeal and soybeans.

FCPO-KUALA LUMPUR, Nov 4 (Reuters) - Malaysian crude palm oil futures slid as much as 7.2 percent on Tuesday as weaker crude oil revived fears of a global recession, which would sap demand and swell already burgeoning stocks.

The benchmark January contract fell 120 ringgit to a inter-day low of 1,546 ringgit ($438) per tonne, tumbling off a near two-week high hit the previous day. By the end of session, the contract traded down 88 ringgit.

REGIONAL EQUITIES-BANGKOK, Nov 4 (Reuters) - Most Southeast Asian stock markets ended firmer on Tuesday, with government measures to support the economy spurring buying in Thailand and Malaysia, but a weak earnings outlook from telco SingTel pushed Singapore shares lower.

Late in the session, investors sold into recent market rallies as they waited for the outcome of the U.S. presidential election, which should be known early in Asian trading on Wednesday.

Singapore's Straits Times Index <.FTSTI> extended its fall in late trade to close down 2.9 percent. Malaysia's index <.KLSE> rose for a fourth day, ending up 0.7 percent, while the Thai index <.SETI> climbed 1.9 percent, on top of a 16 percent gain in the previous three days.

Jakarta's stock index <.JKSE> rose for the fifth day, adding 1.3 percent, and Vietnam stocks <.VNI> surged 3.7 percent, helped by the second official interest rate cut in two weeks. Philippines stocks <.PSI> dipped 1.1 percent, snapping a four-day rally.

DJI Daily: biggest election day rally

DJI had its biggest election day rallied. However, the overall technical landscape remained stayed below the mid-term downtrend line. We continue to look for the resistance at 9794 followed by 10322 and support is pegged at 9080.