Trader's Comment: Palm oil futures ended broadly higher in late trading.

Palm oil futures ended broadly higher in late trading. Benchmark Mar09 initially hit the morning high of 1583 after opened RM16 higher at 1561 following overnight strong closing in CBOT. However, lack of follow through buying activities saw CPO prices to ease off and began to trade in a range between 1575-1555 level through out the day. Slight selling off activities seen in early 2nd session sent Benchmark Mar09 to hit intra day low at 1548 but was well supported and immediately pulled back into the range. Statement by Oil World analyst that said palm oil prices are likely to rise in coming months had helped to provide some buying support in the market. Late intra day covering and speculative buys ahead of OPEC meeting today saw prices climbed and hit intra day high at 1586 before it settled RM35 higher at 1580. Total daily volume was moderate with 6905 contracts changed hands.

Breaking News-RTRS-Palm oil to pull edible oil prices upwards-Oil World

HAMBURG, Dec 16 (Reuters) - Global palm oil prices are likely to rise in coming months and will help strengthen other vegetable oil markets, Hamburg-based oilseeds analyst Oil World said on Tuesday.
"We forecast prices of crude palm oil (cif Rotterdam) will increase to $660 in Jan/June 2009," it said in a weekly report. Cif Rotterdam crude palm oil prices are now around $500 a tonne.

Breaking News-RTRS-HK central bank cuts base rate by 100 basis points

HONG KONG, Dec 17 (Reuters) - The Hong Kong Monetary Authority on Wednesday lowered the base rate charged through its overnight discount window by 100 basis points to 0.50 percent.

Breaking News-RTRS-UPDATE 2-Pimco's El-Erian: Unintended consequences from Fed move

NEW YORK, Dec 16 (Reuters) - The CEO of bond giant PIMCO hailed the Federal Reserve's cut of its main U.S. interest rate target as low as zero as an "extremely bold policy response" but warned of possible unintended consequences.
Aggressive moves by the U.S. central bank could send the U.S. currency under tremendous pressure and could result in even further disarray in capital markets, Mohamed El-Erian told Reuters on Tuesday.

Trader's Highlight

DJI-NEW YORK, Dec 16 (Reuters) - U.S. stocks rallied on Tuesday after the Federal Reserve rewrote its playbook by slashing borrowing costs to a record low, even zero, and pledging more unconventional steps to fight the deepest recession in generations.

Banks led the charge higher, spurred both by the Fed's move to cap its target lending rate at a quarter percentage point and by a quarterly loss from Wall Street icon Goldman Sachs that was not as gruesome as many feared.

The Dow Jones industrial average <.DJI> rose 359.61 points, or 4.20 percent, to 8,924.14. The Standard & Poor's 500 Index <.SPX> jumped 44.61 points, or 5.14 percent, to 913.18. The Nasdaq Composite Index <.IXIC> climbed 81.55 points, or 5.41 percent, to 1,589.89.

NYMEX-NEW YORK, Dec 16 (Reuters) - U.S. crude oil futures ended 2 percent lower on Tuesday as concerns about the economy after the Federal Reserve cut its target for overnight interest rates trumped the weak dollar and OPEC's intent to cut oil output.

All the news is supportive, OPEC and the weak dollar, yet oil coming back off tells you the bears are still in control," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc.

On the New York Mercantile Exchange, January crude fell 91 cents, or 2.04 percent, to settle at $43.60 a barrel, trading from $42.56 to $46.53.

CBOT-SOYBEANS - January up 12-1/2 cents to $8.58-1/2 a bushel, March up 13-1/2 to $8.63.

Dry weather in Argentina, the world's third largest soy exporter, supporting prices in addition to tight stocks of soy.

CBOT-SOYOIL - January up 0.80 cent to 31.35 cents a lb, March up 0.80 cent at 31.71. Following soybeans.

FCPO-JAKARTA, Dec 16 (Reuters) - Malaysian palm futures finished at a one-week low on Tuesday after falling for the third day in a row in the absence of any fresh news to renew buying interest, traders said.

The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange settled down 35 ringgit, or 2.22 percent, at 1,545 ringgit ($435) per tonne.

Other traded contracts fell between 31 and 36 ringgit. The overall volume was 9,676 lots of 25 tonnes each.

REGIONAL EQUITIES-Southeast Asian markets elsewhere were mixed amid expectations of interest rate cuts by the U.S. Federal Reserve and as a U.S. car sector bailout remained uncertain.

Singapore's benchmark Straits Times Index <.FTSTI> inched up 0.4 percent, after a gain of almost 2 percent on Monday.

In Kuala Lumpur, some analysts said local sentiment turned cautious because of the U.S. markets, but the key share index ended 0.98 percent higher after a 0.68 percent fall on Monday.

Indonesia's main stock index <.JKSE> bucked the trend, sliding 1.2 percent after a 7.63 percent rise on Monday

FKLI Daily: tested 865

Market finally tested 865 level and close at day high had drew a little hope for a short term bear rebound. To the upside, we are looking the resistance at 869-871.5 followed by 876.5-877. While, downside support is pegged at 850-842.5.

KLSE Daily: remains same posture

Market remains the same posture and looks market may continue its sideways move in near term. Support is remains at 838-835. Resistance is at 858-860 followed by 864-868.

DJI Daily: triple digit gain

Immediate daily technical outlook looks cheers up a little following a triple digit gain. Resistance at 8827-8879 was violated and market looks may move sideways to bias little upside potential in near term. As for now, we are looking the resistance at 9000-9160. For downside, support is remains at 8347-8335.

FCPO Daily: losing ground

FCPO violated the immediate support at 1560-1556 and close weak had weakened further the technical landscape. Market may continue to move sideways with immediate support now looking at 1520-1500 followed by 1487. For upside, immediate resistance is at 1630-1640.