Trader's Comment: CPO futures closed sharply higher on aggressive short covering and speculative buying activities.

CPO futures closed sharply higher on aggressive short covering and speculative buying activities. Benchmark Feb09 initially traded lower and hit intra day low of 1496, following overnight NYMEX crude oil settled nearly 7% lower coupled with easier CBOT soy complex. However, the emerged of bargain hunting buyers near 1500 level had provided some support on the CPO price. Market was trading in a cautious manner, saw CPO prices to hover around 1520-1540 through out most of the sessions. Nevertheless, since Benchmark Feb09 break above yesterday’s high at 1550 level, buyers were seen more and more impatient. In the later second session, Benchmark Feb09 surging further to hit intra day high of 1604, before it finally settled RM78 higher at 1598. Market has been steady for the last couple of days due to Malaysia government implementation of bio-fuel mandates and replanting schemes. The big 6 plantation houses had been very supportive to these measures. This provided some comfort to the buyers and created some uneasiness to the bear.

Trader's Highlight

DJI-NEW YORK, Nov 25 (Reuters) - The Dow and S&P 500 gained on Tuesday on optimism that the Federal Reserve's latest rescue package could revive the sagging housing market and free up consumer lending.

The Dow Jones industrial average <.DJI> gained 36.08 points, or 0.43 percent, to 8,479.47. The Standard & Poor's 500 Index <.SPX> rose 5.58 points, or 0.66 percent, to 857.39. But the Nasdaq Composite Index <.IXIC> shed 7.29 points, or 0.50 percent, to 1,464.73.

Under the Fed's latest plan, the U.S. central bank will buy billions of dollars worth of debt and mortgage-backed securities to increase the flow of credit for mortgages, student loans, car loans and credit cards.

NYMEX-NEW YORK, Nov 25 (Reuters) - U.S. crude oil futures fell almost 7 percent on Tuesday on worries about declining demand after a government report showed the U.S. economy shrank by more than estimated during the third quarter.

On the New York Mercantile Exchange, January crude settled down $3.73, or 6.84 percent, at $50.77 a barrel, after trading from $50.52 to $54.66.

CBOT-SOYBEANS - January down 1 cent at $8.83 per bushel. Choppy day with market underpinned by strength in soymeal. Concerns about dry weather in some soy production areas in South America supportive. Pressured by profit-taking after Monday's rally when soy jumped 5 percent.

U.S. Census Bureau to issue its monthly crush on Wednesday.

CBOT-SOYOIL - December down 0.50 cent at 32.24 cents per lb. Pressured by lower crude oil, as well as meal/oil spreading as the spread corrects some.

FCPO-JAKARTA, Nov 25 (Reuters) - Malaysian palm futures closed up on Tuesday, supported by strong exports data, but were off earlier highs as market players pocketed profits in late trading, traders said.

The benchmark February palm oil contract on the Bursa Malaysia's Derivatives Exchange closed 32 ringgit, or 2.15 percent higher, at 1,520 ringgit ($420) per tonne.

Other traded contracts rose between 28 ringgit and 60 ringgit. The overall volume stood at 9,476 lots of 25 tonnes each.

REGIONAL EQUITIES-KUALA LUMPUR, Nov 25 (Reuters) - South East Asian stock markets rose on Tuesday, led by the Philippines and in line with regional markets, as investors endorsed the U.S. government's rescue of banking giant Citigroup.

But most markets ended off highs, which dealers said indicated that investors were still concerned about more near-term risks, including whether other global lenders are in need of rescue, as well as indicators that continue to signal a rough road ahead for the global economy.

Singapore stocks <.FTSTI> gained 2.03 percent to 1,653.25, while Jakarta <.JKSE> gained 1.12 percent. Kuala Lumpur <.KLSE> underperformed the region, closing 0.56
percent higher at 860.18 points.

Breaking News-RTRS-"Green" palm oil sales expected to pick up in 2009

JAKARTA, Nov 25 (Reuters) - Palm oil producers in Indonesia, Malaysia and Papua New Guinea may sell 1 million tonnes of "sustainable" palm oil next year, up ten-fold on 2008 although still only a tiny fraction of global sales, officials said.
Under fire from green groups and some Western consumers, the palm oil industry established the Round Table on Sustainable Palm Oil (RSPO) in 2004 to develop an ethical certification system, including commitments to preserve rainforests and wildlife.

Breaking News-RTRS-Palm oil to gain world sales from soyoil-Oil World

HAMBURG, Nov 25 (Reuters) - Global soyoil exports are likely to slacken in coming months with palm oil being the main gainer, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Global 2008/2009 (Oct/Sept) soyoil exports are likely to fall to 9.87 million tonnes from 11.12 million in the same year-ago period, it said.
But 2008/2009 (Oct/Sept) palm oil exports are set to rise to 35.13 million tonnes from 33.39 million a year previously.

DJI Daily: slight improvement

DJI had gaining a little ground with another positive close. We now look at the support at 8143-8105 followed by 7987-7882. Resistance is at 8852-8876 followed by 8901-8923.

KLSE Daily: rangy mode

Market remains in range bound mode. Looks 853 level had temporary provide a little support followed by next support is at 850-848. While, upside resistance is at 866-869 followed 869-876 (gap left over since 19/11/2008).

FKLI Daily: stuck at sideways move

Market failed to hold ground after tested the intra-day high at 871. Market may want to move in sideways in near term. 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: slowly inching up

Market slowly inching up with 1400 mark provided a firm support. Looks may want to continue challenge the upside gap left over at 1563-1571 (gap left over since 11/11/2008) followed by 1610-1612 (gap left over since 10/11/2008). For downside, immediate support is at 1511-1503( gap left over yesterday) followed by 1435-1430.