Trader's Comment: Palm oil futures gained broadly higher, after surging for 4 consecutive days.

Palm oil futures gained broadly higher, after surging for 4 consecutive days. Yesterday’s sharp gain in CPO price coupled with lower Asian time NYMEX crude oil had prompted some profit taking activities in the early trading. Benchmark Feb09 slid to intra day low of 1573 after opened RM17 lower at 1581. However, the celebration of overnight “bulls” party was still intact and saw buyer aggressively joining in. Benchmark Feb09 immediately bounce back strongly and climbed its way up through out the day without looking back. It hit the intra day high of 1666 in the later part of second session before it settled RM62 higher at 1660. The rally in regional equity market after China slashed its interest rates had also spilled over and enhanced the bullish sentiment in the market.

Breaking News-RTRS-UPDATE 6-EU executive urges 200 bln euro stimulus

BRUSSELS, Nov 26 (Reuters) - The European Commission called on Wednesday for states to unite in an EU-wide fiscal stimulus package worth 200 billion euros ($260 billion) in an attempt to stave off recession in the 27-nation bloc.

Breaking News-RTRS-China slashed interest rates for the fourth time

BEIJING, Nov 26 (Reuters) - China slashed interest rates on Wednesday for the fourth time since mid-September, dramatically stepping up the pace of monetary easing to cushion the blow of global financial turmoil on the world's fourth-largest economy.
The People's Bank of China (PBOC) cut benchmark rates for one-year loans and deposits by 1.08 percentage points, lowering the cost of one-year borrowing to 5.58 percent and the rate on 12-month certificates of deposit to 2.52 percent.

Breaking News-RTRS-Indonesia keeps Dec palm oil export tax at zero

JAKARTA, Nov 26 (Reuters) - Indonesia is maintaining its zero percent palm oil export tax in December, while it has cut the December palm oil base export price to $415 a tonne from $573, the trade ministry said on Wednesday. The moves are effective from Dec. 1.

Breaking News-RTRS-UPDATE 1-India will only tax crude palm if local prices dive

NEW DELHI, 26 Nov (Reuters) - India will only impose an import tax on crude palm oil if there is a further drop in local oilseed prices, the farm minister said on Wednesday, despite trade calls for a duty to protect farmers and domestic rates.
"The government will act if (oilseed) prices fall below government's minimum support prices," Sharad Pawar said.

Trader's Highlight

DJI-NEW YORK, Nov 26 (Reuters) - U.S. stocks climbed on Wednesday as investors snapped up tech stocks trading near their cheapest levels in five years, and renewed hopes of a General Motors bailout helped investors shrug off data depicting a worsening global economic downturn.

The Dow Jones industrial average <.DJI> shot up 247.14 points, or 2.91 percent, to 8,726.61. The Standard & Poor's 500 Index <.SPX> gained 30.29 points, or 3.53 percent, to 887.68. The Nasdaq Composite Index <.IXIC> jumped 67.37 points, or 4.60 percent, to 1,532.10.

NYMEX-NEW YORK, Nov 26 (Reuters) - U.S. crude oil futures ended higher on Wednesday, lifted by another rousing day on Wall Street and shrugging off data that domestic crude supplies increased much larger than expected last week.

On the New York Mercantile Exchange, January crude settled up $3.67, or 7.23 percent, at $54.44 a barrel, trading from $50.15 to $54.86. It fell nearly 7 percent to $50.77 on Tuesday.

CBOT-SOYBEANS - January up 3 cents at $8.86 per bushel. Support from news that top U.S. soy buyer China cutting interest rates [ID:nPEK95037] and EU launching a big stimulus plan. Dryness in key South American production areas and higher crude oil also supportive.

Census Bureau said U.S. soy crush in October 149.75 million bushels, below estimates for 151.2 million.

CBOT-SOYOIL - December up 0.26 cent at 32.50 cts per lb. Following strength in soy and crude oil.

Census Bureau said U.S. soyoil stocks at the end of October 2.384 billion lbs, below the average estimate for 2.5 billion lbs.

FCPO-KUALA LUMPUR, Nov 26 (Reuters) - Malaysian palm futures surged 5.5 percent to hit a two-week high as market players scrambled to shortcover on expectations that crude oil would claw back some gains, traders said.

The benchmark February palm oil contract on the Bursa Malaysia's Derivatives Exchange rose as much as 84 ringgit to 1,604 ringgit ($443.1) per tonne before closing 78 ringgit up at at 1,598 ringgit.

REGIONAL EQUITIES-KUALA LUMPUR, Nov 26 (Reuters) - Southeast Asian stocks were mostly higher on Wednesday, led by Singapore and Indonesia, as investors cheered the U.S. Federal Reserve's latest rescue package aimed at throwing a lifeline to stressed consumers.

Singapore stocks <.FTSTI> led the region, closing up 3.5 percent at 1,711.13 points.
The Philippines market <.PSI> closed 1.3 percent higher at 1,932.91 points, but Malaysia's main index <.KLSE> closed 0.44 percent down at 856.37 points, led by banks amid concerns over weaker earnings after the central bank cut interest rates
unexpectedly on Monday.

FCPO Daily: 1600 mark tested

Market covered the full gap at 1563-1571 and tested 1600 mark had provided a sign of bottoming out. Market looks may want to challenge the gap left over since 10/11/2008 at 1610-1612 followed by 1696-1705. For downside, immediate support is at 1500-1490 followed by 1470-1450.

FKLI Daily: late sharp rebound

A sharp rebound at late trading session had helped to neutralise a little the immediate daily technical outlook. However, more buying support is needed in the bearish atmosphere. For now, we look for the immediate resistance at 870-875 followed by 880-885.For downside, support is pegged at 851-849 followed by 843-842.

KLSE Daily: remains sideways

Market remains sideways move following prices tested the support at 848 in intra-day basis but manage to defend. As for now, we continue to look for the immediate support at 848 followed by 837. While, upside resistance is at 869-876 (gap left over since 19/11/2008)followed by 880-885

DJI Daily: extended gains

DJI extended its winning streak to end with triple digit higher. We now look at the immediate support at 8260-8240 followed by 8190-8140. Resistance remains at 8852-8876 followed by 8901-8923.