Trader's Comment: Palm oil futures extended its gain in its 4th day rally on the back of steady rival soy oil and NYMEX crude oil.

Palm oil futures extended its gain in its 4th day rally on the back of steady rival soy oil and NYMEX crude oil. Benchmark Feb09 encountered some slight profit taking activities and slip to the intra day low of 1580 after opened almost unchanged at 1597. However, bulls unwillingly to surrender saw prices bounced back strongly and broke the 1600 psychological resistant level easily. Asian time NYMEX crude oil holding steadily after rising overnight coupled with higher eCBOT and Dalian palm also lifted the buying sentiment in the market. Benchmark Feb09 hit the intra day high of 1658 after hovering between 1650-1630 level before it finally settled RM49 higher at 1644. Market tone remained positive.

Breaking News-RTRS-RPT-POLL-Malaysia's Nov palm inventories seen hitting new peak

RTRS-RPT-MALAYSIA'S END-NOV PALM OIL STOCKS SEEN AT RECORD HIGH, UP 4.5 PCT FROM OCT -REUTERS POLL
RTRS-RPT-MALAYSIA'S NOV PALM OIL OUTPUT SEEN DOWN 3.2 PCT FROM OCT AT 1.60 MLN TONNES -POLL
RTRS-RPT-MALAYSIA'S NOV PALM OIL EXPORTS SEEN UP 4.8 PCT FROM OCT AT 1.4 MLN TONNES -POLL

Breaking News-RTRS-INTERVIEW-UPDATE 1-Soymeal buyers default on India deals - trade

NEW DELHI, Dec 10 (Reuters) - Soymeal buyers in South Korea, Vietnam and Indonesia have reneged on deals with India after prices fell, forcing exporters to renegotiate contracts and offer cheaper rates, a leading seller said on Wednesday.
A sharp fall in prices of almost all major commodities has led to defaults with buyers finding it difficult to honour deals.
Indian vegetable oil traders have backed out of import deals, sparking protests from suppliers such as Malaysia and Indonesia, which have threatened to blacklist those who defaulted.

Breaking News-RPT-UPDATE 2-Malaysia pushes harder for palm biofuels

KUALA LUMPUR, Dec 10 (Reuters) - Malaysia said on Wednesday it would aim to convince independent power producers to boost the use of palm oil as a fuel, but industry observers remained sceptical because of the government's overly high subsidies to support the sector.
The world's second-largest palm producer said it will sell palm biodiesel at domestic pumps in 2010, as well as lure IPPs to burn palm oil as biodisel -- measures aimed at mopping up excess stocks of the vegetable oil.

Breaking News-RTRS-CORRECTED-Sarawak palm oil reeling under low prices-paper

KUALA LUMPUR, Dec 10 (Reuters) - Oil palm plantation companies in Malaysia's Sarawak state have appealed for government aid to help them offset a sharp fall in prices, the Star newspaper reported on Wednesday.
In Sarawak, just 20 percent of the palm oil plantations are mature due to a rush into the commodity at peak prices, compared with 86 percent in peninsular Malaysia and 59 percent in Sabah, which means that many of the Sarawak plantations are not economically viable, the paper said.

Trader's Comment: CPO futures ended higher after trading in the fairly steady mode.

CPO futures ended higher after trading in the fairly steady mode. Benchmark Feb09 hit 1599 after opened RM36 higher at 1591, due to the data released by private cargo surveyor ITS in the early morning which reported a nearly doubled export figures for the first 10 days of the month. It then slid to the intra day low of 1560 which fully recovered yesterday’s left over gap. However, CPO prices were well supported amid a steady crude oil prices in Asian time zone coupled with the gains in eCBOT soy complex and Dalian palm. The other cargo surveyor SGS that released its report in the afternoon also showed almost the same result. Benchmark Feb09 then traded in a range between 1565-1590 for most of the sessions before it hit the intra day high of 1605 in the late trading. Later, it settled RM40 higher at 1595. Speculative buying on fear of flood providing the support as well.

Trader's Highlight

DJI-NEW YORK, Dec 10 (Reuters) - U.S. stocks rose in a choppy session on Wednesday as a rebound in oil prices and other commodities lifted energy, mining and materials shares, offsetting nervousness over whether Washington will agree on a bailout for ailing car makers.

The Dow Jones industrial average rose 70.09 points, or 0.81 percent, to 8,761.42. The Standard & Poor's 500 Index gained 10.57 points, or 1.19 percent, to 899.24. The Nasdaq Composite Index was up 18.14 points, or 1.17 percent, at 1,565.48.

NYMEX-NEW YORK, Dec 10 (Reuters) - U.S. crude oil futures rose on Wednesday as Saudi Arabia, according to trading sources, had told customers it would significantly cut oil supplies for January.

On the New York Mercantile Exchange, January crude settled up $1.45, or 3.45 percent, at $43.52 a barrel. At its session high, it was up more than $4 at $46.17, the highest since Dec. 4. The bottom of the day's range was $41.89.

CBOT-SOYBEANS - January up 16-1/2 cents at $8.29-1/2 a bushel.

Tight stocks of soy and firm crude prices boosted soy. Weak dollar and gains in stock market supportive. Average of analysts' estimates pegged 2008/09 U.S. soy
ending stocks at 202 million bushels, below the USDA's forecast in November for 205 million.

CBOT-SOYOIL - December up 1.05 cents at 30.59 cents/lb. Climbed when crude was up more than $2 a barrel, then crude slipped.

FCPO-KUALA LUMPUR, Dec 10 (Reuters) - Malaysian palm futures jumped as much as 3.2 percent to touch one-week highs on Wednesday after cargo surveyors reported that exports for the first 10 days of the month nearly doubled.

The benchmark February palm oil contract on Bursa Malaysia's Derivatives Exchange rose as much as 50 ringgit to 1,605 ringgit ($444) per tonne, a level last seen on Dec 2., before settling at 1,595 ringgit.

Other traded contracts rose between 14 ringgit and 70 ringgit. Overall volume stood at 11,129 lots of 25 tonnes.

REGIONAL EQUITIES-JAKARTA, Dec 10 (Reuters) - Southeast Asian stocks rose on Wednesday, with Jakarta <.JKSE> up 3.9 percent led by energy and agriculture stocks thanks to a rebound in oil and palm oil prices.

Singapore's Straits Times Index <.FTSTI> rose 3.8 percent, Kuala Lumpur <.KLSE> gained 2.33 percent, and Philippine stocks <.PSI> inched up 0.19 percent. Vietnam <.VNI> fell 2.2 percent, while Thailand was closed on Wednesday.

FCPO Daily: may want to challenge 1700 again!

FCPO ended with good closing despite it close below 1600 mark. Market looks stabilised following 1400 mark provided a good support. It may want to challenge 1700 level again in near term. We now look at the support at 1500-1487. For upside, resistance is at 1666-1675 followed by 1692-1700.

FKLI Daily: Bear rebound

Market violated the resistance at 859.5 with printed a white candle. This had given a little hope for a bear to rebound. As for now, we pegged the immediate support at 842-831. For upside, resistance is at 865-868 followed by 876.5-877.

KLSE Daily: gaining ground

Market gaining a little ground with 838-837 level was well supported. Sideways move looks may continue in near term market. For upside, resistance is 869-876 (gap left over since 19/11/2008).

DJI Daily: 8000 mark defended

DJI defended well at 8000 mark following prices holding ground. Market looks may extend its consolidation phase in near term. We now looking the resistance at 9266-9284. For downside, support is pegged at 8118-8143.