Trader's Comment: Market was still well defended as CPO futures managed to close above 1800 level

Market was still well defended as CPO futures managed to close above 1800 level despite being penetrated below 1800. Benchmark Apr09 hit intra day high of 1840 after opened RM29 higher at 1835 following overnight CBOT soy complex settled at positive territory despite the sharp drop in NYMEX crude oil. It then started to weaken as it moved down slowly until it hit the intra day low at 1790 in the early second session. Nevertheless, the emerged of pre-weekend short covering activities in late trading hour sent Benchmark Mar09 to bounce back again and it finally settled RM28 higher at 1833. Extended gains in eCBOT soy complex and some slight recovering of Asian time crude oil had provided supportive element in our local CPO market.

Breaking News-RTRS-China soy imports strong on high crushing margin-survey

BEIJING, Jan 16 (Reuters) - Chinese crushers have purchased as much as 1.5 million tonnes of soybeans in the first half of this month as crushers stepped up imports on rising domestic prices of soy products, according to an official survey
Crushing margins for soy plants have hit "the highest level" due to surging soymeal and soyoil prices ahead of the Lunar Chinese New Year, the China National Grain and Oils Information Centre (CNGOIC) said in a report.

Trader's Highlight

DJI-NEW YORK, Jan 15 (Reuters) - U.S. stocks rose on Thursday amid market optimism the government will act to prevent the year-long recession from deepening, offsetting news that Bank of America was seeking more government aid that had fueled worries about the health of the financial sector.

In response to indications that the recession is deepening, Democratic leaders in the U.S. House of Representatives unveiled an $825 billion tax cut and spending bill. After the closing bell, the U.S. Senate rejected an attempt to block the
release of the remaining $350 billion from the financial bailout fund.

The Dow Jones industrial average <.DJI> added 12.35 points, or 0.15 percent, to 8,212.49. The Standard & Poor's 500 Index <.SPX> rose 1.12 points, or 0.13 percent, to 843.74. The Nasdaq Composite Index <.IXIC> was up 22.20 points, or 1.49 percent,
at 1,511.84.

NYMEX-NEW YORK, Jan 15 (Reuters) - U.S. crude futures ended more than 5 percent lower on Thursday on a bleak OPEC global demand forecast, gloomy domestic economic mews and brimming domestic oil supplies. NYMEX February crude, which expires on Tuesday, sank to a new contract low, hitting the lowest level since prices hit the 2008 low of $32.40 on Dec. 19.

On the New York Mercantile Exchange, February crude settled down $1.88, or 5.04 percent, at $35.40 a barrel, trading from $33.20 and $37.99.

CBOT-SOYBEANS - March up 23 cents at $9.94-1/2 a bushel. Gained on Argentine crop worries as hot, dry weather forecast for next week. Strong Chinese demand for soybeans also supportive.

CBOT-SOYOIL - March up 0.35 cent at 34.40 cents per lb. Support from gains in soybeans. Drop in crude oil limited gains.

FCPO-KUALA LUMPUR, Jan 15 (Reuters) - Malaysian crude palm oil futures tumbled 4.1 percent on Thursday as investors cut some positions on slowing shipments and weak global soyoil markets.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange settled down 78 ringgit at 1,806 Malaysian ringgit ($502.8) a tonne.

Other traded months fell between 45 and 83 ringgit <0#KPO:>. Overall trade stood at 10,935 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Jan 15 (Reuters) - Stocks in Singapore, Indonesia and Thailand fell over 3 percent on Thursday, with others in the region also under selling pressure amid bleak global economic data and a deepening banking crisis in the United States.

In Singapore, the main stock index <.FTSTI> posted the largest fall in the Southeast region, ending 3.4 percent lower at its lowest in over a month.

In Kuala Lumpur, shares <.KLSE> ended down 1.8 percent after earlier falling 2.6 percent to a near two-week low, with telecoms leading decliners.Goldman Sachs has downgraded Telekom Malaysia and DiGi to 'sell'.

Trader's Comment: Palm oil futures surrendered its yesterday’s gain to end sharply lower on weak export.

Palm oil futures surrendered its yesterday’s gain to end sharply lower on weak export. Benchmark Mar09 opened RM61 lower at 1823 following the declined of overnight NYMEX crude oil and CBOT soy complex. It then hovered in a tight range of 1840-1810 level through out most of the sessions, fueled by a very low volume. The released of Jan1-15 export data by private cargo surveyors has further weaken the market sentiment after ITS and SGS posted a fall of 33% and 36% respectively. Benchmark Mar09 hit intra day high at 1844 in the second session but was immediately sold down again to intra day low of 1804 before it ended RM78 lower at 1806.

FCPO Daily: 1800 mark try hard to defend

Market again ended in negative territory yet 1800 mark was tried hard to defend. Chart wise market momentum turning weaker mode. Thus, market may move sideways to lower in near term. For now, we continue to look for downside support at 1800-1797 followed by 1738-1723. Upside resistance is at 1844-1856 (gap left over on 15/1/2009) followed by 1900.

DJI Daily: Ended 6 days losing streak

Market ended its six day losing streak with mild gain. Overall technical picture was still in bearish mode. Currently,immediate support is pegged at 8000-7880. Meanwhile, upside resistance maintain at 9000-8900.

KLSE Daily: Bear strike

Market gap down to end below 900 mark on bear strike. Immediate daily technical outlook weakened further and looks may move sideways to lower in near term market. Upside resistance is now at 907-910 (gap left over on 15/1/2009). While, downside support is pegged at 870-867.

FKLI Daily: 900 mark failed to hold

Market violated the physiological support at 900 mark had again dampened the immediate technical outlook. Bull looks failed to defend and market may move sideways to lower in near term. Thus, we are now looking for the downside support at 879.5-876 followed by 866-862.5. For upside, resistance is at 899.5-907 (gap left over on 15/1/2009).