Trader's Comment: Palm oil futures extended yesterday’s gain on strong export figures.

Palm oil futures extended yesterday’s gain on strong export figures. Benchmark Mar09 opened RM3 higher at 1562 following overnight CBOT soy complex settled slightly higher coupled with the rebound of Asian time crude oil in the early trade. It then immediately surged to the morning high of 1586 before some profit taking activities emerged and sent prices to ease off a little to 1571 by midday. The release of 1-25 Dec export data by both private cargo surveyors had provided a firm support on CPO prices. ITS and SGS posted an increase of 23.7% and 23.5% respectively. Benchmark Mar09 began to bounce back after second session resumed trading and continued to rally higher to intra day high of 1596 before it finally settled RM31 higher at 1590. Trading remained quiet ahead of long weekend, as market will be closed on Monday for Awal Muharam.

Breaking News-RTRS-Some Argentine farmers relaunch anti-government protests.

BUENOS AIRES, Dec 23 (Reuters) - A group of Argentine farmers sporadically blocked a rural highway on Tuesday in protest against government farm policy, returning to methods used during a four-month-long conflict earlier this year.
The protest took place a day after President Cristina Fernandez announced a series of measures benefiting the sector, which did not include a highly anticipated reduction in export taxes on the country's top crop, soy.

Breaking News-RTRS--Indonesia keeps January palm oil export tax

JAKARTA, Dec 25 (Reuters) - Indonesia is maintaining its zero
percent palm oil export tax in January, while it will raise crude
palm oil base export price to $418 a tonne from $415 a tonne in
December, the trade ministry said late on Wednesday.
The moves are effective from Jan 1 to end of January.
The new base price is far below the minimum reference price
for palm oil export tax, which has been raised to $700 a tonne
from $550.

Trader's Highlight

DJI-NEW YORK, Dec 24 (Reuters) - One final hurrah, or gasp given the grim global economic conditions, pushed U.S. stocks to a positive close before the Christmas break on Wednesday, but other markets fell, with crude oil slumping 9 percent on the economic outlook.

Stocks in Europe and Asia fell in thin trading volumes, led down by energy pharmaceutical and automotive shares. European and U.S. stock markets closed early.

U.S. stock markets closed at 1 p.m. (1800 GMT). The Dow Jones industrial average <.DJI> gained 48.91 points, or 0.58 percent, to 8,468.40. The Standard & Poor's 500
Index <.SPX> rose 4.91 points, or 0.57 percent, to 868.07. The Nasdaq Composite Index <.IXIC> edged higher, up 3.36 points, or 0.22 percent, to 1,524.90.

NYMEX-NEW YORK, Dec 24 (Reuters) - U.S. crude oil futures fell 9.31 percent on Wednesday in a shortened session as the dreary economy picture offset a government report showing an unexpected drop in crude oil inventories last week.

On the New York Mercantile Exchange, February crude fell $3.63, or 9.31 percent, to settle at $35.35 a barrel, trading from $35.13, a contract low, to $39.69.

CBOT-SOYBEANS - January up 14-3/4 cents at $9.15-3/4 per bushel; March up 14 at $9.19.

CBOT-SOYOIL - January up 0.10 cent per lb at 31.31 cents. Choppy, range-bound session. Caught between firmer soybeans market and weaker crude oil.

FCPO-KUALA LUMPUR, Dec 24 (Reuters) - Malaysian crude palm oil futures ended 1.9 percent higher on Wednesday as traders closed their positions ahead of the Christmas holiday.

The benchmark March 2009 on Bursa Malaysia's Derivatives Exchange closed 29 ringgit higher at 1,559 ringgit ($448.9) per tonne. Gains in other traded months <0#KPO:> ranged between 22 ringgit and 30 ringgit. Overall trade dropped to 3,573 lots of 25 tonnes each from the usual 5,000 lots.

REGIONAL EQUITIES-Malaysian shares <.KLSE> extended their three-day falling streak to end 0.18 percent at an one-week closing low, weighed down by a 0.85 percent fall in Bumiputra Commerce Holdings .

Elsewhere in the region, Indonesia stocks <.JKSE> eased 0.53 percent, while the Philippine index <.PSI> climbed 0.57 percent and Vietnam <.VNI> inched up 0.04 percent, recovering from a 2 percent fall on Tuesday. The Straits Time index <.FTSTI> ended 0.72 percent higher, rebounding after three straight days of losses.

DJI Daily: not much of Christmas cheer

Market stayed firm with bias sideways to downside potential. We continue to look for the support at 8372-8347 followed by 8118-8140. while, upside resistance is at 8600-8680 level.

KLSE Daily: remains sideways to bias little upside potential

Market maintain its sideways to bias little upside potential posture despite it close lower before a Christmas break. As for now, we continue to look for the resistance at 873-874 followed by 880. Immediate downside support is pegged at 862 followed by 858-853.

FKLI Daily: in range trading

Market took a little breathe ahead of Christmas holiday as prices stuck in range trading. We continue look for the support at 863.5-862.5 followed by 853.5-850. For upside, resistance is at 876.5-879 followed by 890.

FCPO Daily: 1500 mark stay firm

Market remains firm above 1500 mark in a dull trading day. Looks 1500-1600 range likely to continue in near term. Upside resistance maintain at 1596-1600. Downside support is pegged at 1509-1487