FCPO Weekly: Consolidate

Market remains in consolidation phase with recent low at 1331 well defended. For upside, we look for the resistance at 1902-1934.

Trader's Comment: CPO futures ended higher amid weakening of ringgit against dollar, coupled with slight gain in eCBOT and Dalian soy oil.

CPO futures ended higher amid weakening of ringgit against dollar, coupled with slight gain in eCBOT and Dalian soy oil. Benchmark Jan09 initially open RM19 lower at 1580, and immediately hit the day low at 1560, after overnight NYMEX crude oil which settled $4 lower, while CBOT soy complex posted small gain. CPO prices then bounce back to cover yesterday’s left over gap and hit the intra day high of 1640 in the afternoon session, following the gain in eCBOT and Dalian soy oil prices during Asian time zone had provided some buying support, and help lifted the market sentiment, despite both Reuters poll and Malaysia Commodities Minister stated bearish information of weak export, high production and high stock level data. Benchmark Jan09 traded in a range of 1610-1632 for the rest of the afternoon session, and settled at 1609 after some profit taking activities appear.

FKLI Weekly: Good defend

Market defended well and manage to recover with printed a white candle. Nevertheless, downtrend remains intact. As for now, we continue to look for the support at 800 mark. For upside, resistance is at 959-962.

KLSE Weekly: Gaining a little ground

Market is gaining a little ground with printed another white candle. However, bull still have to give more effort to clear off the current bearish atmosphere. As for now, we pegged the support 800 mark. For upside, resistance is at 970-973.

Breaking News-RTRS-MALAYSIA'S COMMODITIES MINISTER SAYS OCT PALM OIL STOCKS COULD EXCEED 2 MLN TONNES

KUALA LUMPUR, Nov 7 (Reuters) - Malaysia's October palm oil inventory could exceed 2 million tonnes, Commodities Minister Peter Chin said on Friday.
Palm oil stocks likely rose 4.1 percent to a near-record level of 2.03 million tonnes as production posted steady growth despite a major holiday season, outpacing a weak increase in exports, a Reuters poll showed on Thursday.[ID:nSGE000073]
Chin said the country's crude palm oil output is expected to top 18 million tonnes next year.
The minister also said Malaysia's biodiesel exports to the European Union countries and the United States have fallen by 20 percent so far this year as a result of pressure from environmentalists.

Breaking News-RTRS -POLL-Malaysia's Oct palm inventories seen near record

06Nov08 -MALAYSIA'S END-OCT PALM OIL STOCKS SEEN AT 2.03 MLN TONNES, UP 4.1 PCT FROM SEPT -REUTERS POLL
06Nov08 -MALAYSIA'S OCT PALM OIL OUTPUT SEEN UP 1.4 PCT FROM SEPT -POLL
06Nov08 -MALAYSIA'S OCT PALM OIL EXPORTS SEEN UP 0.5 PCT FROM SEPT -POLL
06Nov08 -POLL-Malaysia's Oct palm inventories seen near record

Breaking News-RTRS-GLOBAL MARKETS-Interest rate cuts compound fears, stocks sink

NEW YORK, Nov 6 (Reuters) - A flurry of deep central bank interest rate cuts, designed to bolster investor confidence, failed to prevent world stock markets from sliding on Thursday, as the prospect of recession loomed in Europe and the U.S.
The British pound lost ground after the Bank of England (BoE) made a hefty 1.5 percentage point cut to its benchmark interest rate, dropping it to a more than half-century low of 3.0 percent.
The euro, and Swiss franc also fell against the U.S. dollar after both the European Central Bank and the Swiss central bank cut benchmark rates by half a percentage point. The Czech Republic also cut rates more than expected, causing the crown to fall versus the euro.

Trader's Highlight

DJI-NEW YORK, Nov 6 (Reuters) - U.S. stocks sold off on Thursday in the worst two-day slide since October 1987 with disappointing corporate outlooks and bleak sales from major retailers fueling fears of a deepening economic downturn.

Cautious investors looked ahead to Friday's jobs payroll data, which is expected to further underscore the weakening economy after weekly jobless claims fell but still showed serious labor market strains.

The Dow Jones industrial average <.DJI> tumbled 443.48 points, or 4.85 percent, to 8,695.79. The Standard & Poor's 500 Index <.SPX> dove 47.89 points, or 5.03 percent, to 904.88. The Nasdaq Composite Index <.IXIC> shed 72.94 points, or 4.34 percent, to 1,608.70.

NYMEX-NEW YORK, Nov 6 (Reuters) - U.S. crude futures ended at a 19-month low on Thursday as demand worries persisted amid a slowing global economy.

The strength of the dollar against the euro also pressured crude futures.

On the New York Mercantile Exchange, December crude settled down $4.53, or 6.94 percent, at $60.77 a barrel, the lowest since settling at $59.61 on March 21, 2007. It traded from $60.16, which was the lowest since $59.95 on March 22, 2007, to $65.50.

CBOT-SOYBEANS - November up 4-3/4 cents at $8.99-1/2 per bushel, January up 2 at $9.06.

Front contracts draw late support from short-covering amid firm cash markets and recent Chinese demand, reflected in latest export sales data. Deferreds end down, with rally limited by weak outside markets, including crude oil, as recession worries continue.

USDA expected to lower U.S. soybean crop estimate to 2.919 billion bushels, from 2.938 billion in Oct 28 report.

CBOT-SOYOIL - December up 0.15 cent at 34.17 cents per lb. Rallied after early weakness, as crude oil came off its lows.

FCPO-KUALA LUMPUR, Nov 6 (Reuters) - Malaysian crude palm oil futures slid 5.6 percent on Thursday as commodity markets mostly drew back on worries of a deepening economic recession.

The benchmark January contract on the Bursa Malaysia Derivatives Exchange fell as much as 92 ringgit to 1,548 ringgit ($439.4) per tonne. It clawed back some losses by the end of the session, ending down 41 ringgit at 1,599 ringgit.

Other traded months fell between 25 and 64 ringgit by the midday break <0#KPO:>. Overall trade volume slipped to 8,881 lots at 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Nov 6 (Reuters) - Stocks in Singapore and Jakarta fell to their lowest in nearly one week on Thursday as most Southeast Asian equities tracked a decline in global equities on concerns about a global recession.

Singapore <.FTSTI> slid 2.7 percent to its lowest since Oct. 31 while Malaysia <.KLSE> snapped a five-day winning run to drop 2.1 percent. The Thai index <.SETI> reversed its early falls to close up 1.2 percent, led by banks.

DJI Daily: more room to downside potential

Bear dominated the market momentum with DJI ended with another long black candle printed and shows more room to downside potential in near term. For now, we look for the resistance at 9616-9653. Downside support is at 8197-8143.

FKLI Daily: downtrend resume

Market looks tiring after the recent rebound following it failed to stay firm at 900 mark. This had given chance for the bear to take advantage. At the current level, we look for the immediate resistance at 893.5-905 (gap left over yesterday) followed by 927-937. While, downside support is pegged at 875-871.5 followed by 863-859.5.

KLSE Daily: losing ground

Market is losing ground following prices unable to sustain after straight 5 days rallied. We now looking for the immediate resistance at 900-913 (gap left over yesterday)followed by 926-932. For downside, immediate support at 880 followed by 869-867.

FCPO Daily: remains cloudy

Market direction remains cloudy as market extended its sideways move. We continue to look for the resistance at 1607-1626 (gap left over yesterday) followed by 1727-1734 (gap left over since 15 Oct, 2008). Support is pegged at 1548-1539 (gap left over since 31 Oct, 2008) followed by 1491-1441 (gap left over since 29 Oct, 2008).