CPO Tender Summary and Delivery Location as on January 2009

Breaking News-(BN) Indonesia Says 2009 Palm Oil Output May Rise to 20 Million Tons

Jan. 21 (Bloomberg) -- Indonesia forecasts palm oil production will increase 5 percent this year to about 20 million tons, Akmaluddin Hasibuan, chairman of the nation’s palm oil association said in Jakarta today.

Breaking News-(BN) Indonesia May Waive Tax on Biofuel Sales, Workers Salaries

Jan. 21 (Bloomberg) -- The Indonesian government may waive value-added tax on sales of vegetable-derived fuels to help demand for palm oil.
The government plans to exempt sales of vegetable-derived oils used as a mix in fuels sold to companies from the tax, Bayu Krisnamurthi, a deputy for Coordinating Minister for Economic Affairs Sri Mulyani Indrawati, told reporters in Jakarta today.

Breaking News-RTRS-Indonesia Musim Mas gets green palm oil certificate

JAKARTA, Jan 21 (Reuters) - Indonesia's PT Musim Mas has been certified as the country's first firm to have adopted stricter sustainability standards in producing palm oil, Agriculture Minister Anton Apriyantono said on Wednesday.
Five other crude palm companies from world's biggest producer of the commodity are currently in the process of getting certificates, he said.

Breaking News-RTRS-Argentina slashes 08/09 soy area forecast

BUENOS AIRES, Jan 21 (Reuters) - Argentina's 2008/09 soy crop will be seeded on 16.5 million hectares (40.8 million acres) versus the 17.8 million estimated last month due to drought, the government's Agriculture Secretariat said on Wednesday.

Trader's Highlight

DJI-NEW YORK, Jan 21 (Reuters) - U.S. stocks jumped on Wednesday, rebounding from a two-month low, after a surprisingly healthy earnings report from IBM fueled optimism
that technology may fare better than other sectors during the recession.

The Dow Jones industrial average <.DJI> gained 279.01 points, or 3.51 percent, to 8,228.10. The Standard & Poor's 500 Index <.SPX> rose 35.02 points, or 4.35 percent, to 840.24. The Nasdaq Composite Index <.IXIC> climbed 66.21 points, or 4.60 percent, to 1,507.07.

NYMEX-NEW YORK, Jan 21 (Reuters) - U.S. crude oil futures ended more than 6 percent higher on Wednesday as the dollar's weakness prompted buying.

On the New York Mercantile Exchange, March crude settled up $2.71, or 6.64 percent, at $43.55 per barrel, moving from $40.24 to $43.70, the highest since Jan. 7's $49.09.

CBOT-SOYBEANS - March up 28-1/2 cents at $10.20-1/2 a bushel. Supported by technical buying and worries that dry weather in Argentina damaging the crop there. Export inspections data also added strength to the market.

CBOT-SOYOIL- March up 0.14 cent at 33.95 cents a pound. Supported by rally in soybeans. Choppy trade in crude oil providing little direction.

FCPO-JAKARTA, Jan 21 (Reuters) - Malaysian crude palm oil futures ended 1 percent lower on Wednesday, extending the previous day's losses due to concern about falling exports, traders said.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange was down 18 ringgit, or 0.99 percent, to 1,809 ringgit ($501) a tonne, coming off intra-day low of 1,792 ringgit.

Other traded contracts dropped between 16 and 45 ringgit. Overall volume was at 12,019 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Jan 21 (Reuters) - Stocks in Southeast Asia extended
falls on Wednesday as signs of trouble in global financial sector continued to hold back appetite for equities, pushing down blue chips in the region such as Singapore's DBS and Thailand's PTT.

Singapore's benchmark index <.FTSTI> dropped for a second straight day to end down 1.1 percent, with lender DBS off 1.3 percent. The index sank to its lowest in more than one month in early trading after the government said the city-state
was in its worst recession ever.

Malaysian shares <.KLSE> fell for a seventh day running, ending 0.8 percent lower, while Thai stocks <.SETI> fell 0.5 percent.

Indonesian shares <.JKSE> dropped 1.7 percent, the Philippines <.PSI> was down 3.1 percent and Vietnam <.VNI> ended 0.9 percent lower.

Trader's Comment: CPO futures extended its consolidation mode to end in negative territory.

CPO futures extended its consolidation mode to end in negative territory. Market momentum was not much improving in a dull and lacklustre trading day. Weak opening for benchmark Apr 09 at 1810, down RM 17 after tracking losses in overnight CBOT and NYMEX crude oil on the back of stronger USD. Bargain hunting continues to take place coupled with some intra-day activities emerged. Prices were then holding well at 1800 mark despite hit the intra-day low at 1792. News on India won’t restore palm oil import tax as oilseed prices rise had helped to underpin the market sentiment. Late push up saw Apr 09 struggling to close at 1809, down RM 18 with total daily volume stood at 12,019 contracts changed hands. Switches between Mar/Apr/May were contributed about 30 per cent of the volume.

FCPO Daily: 1800 mark is holding firm

Market has been holding firm above 1800 mark for few days. Chart wise, consolidation phase may extended in near term. We continue to look for downside support at 1800-1790 followed by 1738-1723. Upside resistance remains at 1860-1870 followed by 1890.

DJI Daily: pulled back effect after sharp fall

Market pulled back after yesterday sharp fall. We remains cautious on the technical outlook as 8000 mark looks fragile. Currently, we continue to look for the recent low at 7882-7449. For upside, resistance remains at 8300-8600.

KLSE Daily: sideways

We maintains sideways to lower view in near term market. Continue to look for downside support at 870-860. Upside resistance is at 875-878 (gap left over on 21/1/2009).

FKLI Daily: immediate support at 865-860

Market looks had found a good support at 860-865 after the yesterday sell off. However, immediate daily technical outlook remains weak despite prices bounced back to close near the day high. For now, we continue to look for the support at 865-860 level. Upside resistance remains at 883.5-887 (gap left over on 20/1/2009) followed by 890.