Trader's Comment: Palm oil futures extending its yesterday’s gains to end generally higher but off high

Palm oil futures extending its yesterday’s gains to end generally higher but off high. Strong closed in overnight NYMEX crude oil coupled with 200 points up in rival soy oil in CBOT saw Benchmark Feb09 initially opened with RM42 higher at 1530 and climbed to 1550 before lunch break. Stronger export figures released by private cargo surveyors also provided some support into the market. However, prices meeting some resistance between 1540 to 1550, thus prompting profit-taking activities emerged. It slides to hit the intra day low of 1511 in late session before it rebounded to settled RM32 higher at 1520. Total daily volume stood at 9476 contracts changed hands.

Breaking News-RPT-Malaysian group sees palm replanting by H1 '09

KUALA LUMPUR, Nov 24 (Reuters) - The replanting of palm oil in Malaysia, covering 200,000 hectares, is likely to be completed in the first half of 2009, an industry group said on Monday.

Breaking News-RTRS-UPDATE 1-Malaysia to tap fund for palm biodiesel, replanting

KUALA LUMPUR, Nov 24 (Reuters) - Malaysia will tap 400 million ringgit ($110 million) from a palm oil stabilisation fund to boost palm biodiesel production and replanting of oil palm trees, an industry official said on Monday.
Of the amount, 200 million ringgit will be used for biodiesel and another 200 million for replanting, said Lee Oi Hian, Chief Executive of Malaysia's third biggest planter Kuala Lumpur Kepong .

Breaking News-RTRS-WRAPUP 3-Malaysia cuts rates, Thailand poised to follow

KUALA LUMPUR/BANGKOK, Nov 24 (Reuters) - Malaysia unexpectedly cut interest rates for the first time in more than five years on Monday and Thailand signalled that it was ready to do the same as Asia grappled with fallout of the global financial crisis.
Malaysia's central bank cited the recession in the industrialised world and the receding risk of inflation from high commodity prices as the reasons for its 25 basis point cut to 3.25 percent.

Trader's Highlight

DJI-NEW YORK, Nov 24 (Reuters) - U.S. stocks advanced broadly on Monday and government debt prices slid after Washington's rescue of Citigroup eased investors' fears that its collapse could push the global financial system into the abyss.

The $300 billion-plus rescue package for Citigroup spurred broad equity rallies on both sides of the Atlantic, outweighing another batch of gloomy economic news that has hammered financial markets in recent weeks. he Dow, with JPMorgan rising 21 percent and Bank of America up 27 percent.

The Dow Jones industrial average <.DJI> closed up 396.97 points, or 4.93 percent, at 8,443.39. The Standard & Poor's 500 Index <.SPX> jumped 51.78 points, or 6.47 percent, at 851.81. The Nasdaq Composite Index <.IXIC> climbed 87.67 points, or 6.33 percent, at 1,472.02.

NYMEX-NEW YORK, Nov 24 (Reuters) - U.S. crude futures ended more than $4 higher on Monday, rising on a weaker dollar and Wall Street's rally after a government rescue of Citigroup and as OPEC prepared to meet on Saturday.

On the New York Mercantile Exchange, January crude settled up $4.57, or 9.15 percent, at $54.50 a barrel, trading from $48.80 to $55.30.

CBOT-SOYBEANS - January <3SF9> up 44 at $8.84 cents. Technical bounce after falling to a five-month low last week. Strength in financial markets and rally in crude oil
supports. Talk that China bought 2-3 cargoes of U.S. soybeans
also supportive, traders.

CBOT-SOYOIL - December <3BOZ8> up 2.04 cents at 32.74 cents per lb. Soyoil up 6.6 percent, moving up in tandem with crude oil

FCPO-JAKARTA, Nov 24 (Reuters) - Malaysian palm futures closed nearly 2 percent higher on Monday on hopes that demand will rise ahead of the Chinese New Year festival early next year, traders said.

The benchmark February palm oil contract on the Bursa Malaysia's Derivatives Exchange closed 28 ringgit, or 1.92 percent higher, at 1,488 ringgit ($410) per tonne.

Other traded contracts rose between 11 ringgit and 39 ringgit. The overall volume stood at 11,717 lots of 25 tonnes each.

REGIONAL EQUITIES-KUALA LUMPUR, Nov 24 (Reuters) - Southeast Asian stock markets fell on Monday, in line with other regional markets, on renewed concerns over the global financial system and as further economic weakness showed.

Japan, Hong Kong and Singapore are already officially in a recession while South Korea, Asia's fourth-largest economy, is poised for a sharp slowdown.

Kuala Lumpur <.KLSE> sold off as well, with the benchmark index dropping 1.33 percent to 855.39 points, still off its year low of 801.27 points hit on Oct. 28.

DJI Daily: technically oversold

DJI extended its winning streak after hit the fresh low. Technically market looks oversold. As for now, we look at the support at 7506-7449.While, resistance is at 8876-8900.

KLSE Daily: stay firm

Nothing much changes on the immediate daily technical outlook as prices remains stayed firm. We continue to look for the support at 850-848 followed by 837. While, upside resistance is at 869-876 (gap left over since 19/11/2008)followed by 880-884.

FKLI Daily: defended well

Market looks defended well at 840 level following few times attempt fail to break through. As for now, we continue to look for the immediate support at 843-842.5 followed by 827.5. For upside, immediate resistance is at 875.5-877 followed by 880-883.

FCPO Daily: 1400 mark holding firm

Market gaining a little ground following 1400 mark continue to hold firm and tested 1500 in intra-day basis. This had neutralised a little the immediate daily technical landscape. Market looks may want to challenge the upside gap left over at 1563-1571 (gap left over since 11/11/2008) followed by 1600. For downside, support is pegged at 1400-1390 followed by 1358-1331.