Trader's Comment: Palm oil futures ended in a positive territory after it recovered from early losses.

Palm oil futures ended in a positive territory after it recovered from early losses. Benchmark Apr09 immediately fell to intra day low of 1741 after opened RM17 lower at 1762, following the loss of overnight NYMEX crude oil and CBOT soy oil, coupled with the weak export data reported by both private cargo surveyors, ITS and SGS, that released yesterday. However, CPO prices did not go down any lower as buyers slowly took charge. eCBOT soy oil rebounded slightly while Dalian palm also rose steadily after its long CNY holiday. These had helped to provide a cushion of support to our local CPO prices. Benchmark Apr09 climbed slowly through out the day and ended at the intra day high at 1788.

Trader's Highlight

DJI-NEW YORK, Feb 2 (Reuters) - The Dow Jones and S&P 500 indexes ended lower on Monday as uncertainty about the Obama administration's plan to stem bank losses hit financial shares and a bleak outlook by Macy's fueled worries the U.S.
recession is worsening.

The Dow Jones industrial average <.DJI> shed 64.11 points, or 0.80 percent, to end at 7,936.75 -- its lowest closing level so far in 2009. The Standard & Poor's 500 Index <.SPX> dipped 0.45 point, or 0.05 percent, to 825.43. The Nasdaq Composite Index <.IXIC> gained 18.01 points, or 1.22 percent, to 1,494.43.

NYMEX-NEW YORK, Feb 2 (Reuters) - U.S. crude oil futures almost 4 percent lower on Monday as economic weakness and an extension of talks easing the immediate threat of a strike by U.S. refinery workers pressured the oil futures complex.

On the New York Mercantile Exchange, March crude settled down $1.60, or 3.84 percent, at $40.08 per barrel, after trading from $39.83 to $42.31.

CBOT-SOYBEANS - March down 20-1/2 cents at $9.59-1/2 a bushel.

Light showers over the weekend in Argentina and forecasts for more rain this week weigh on soy along with falling stock markets, weak crude oil and a firm dollar.

Late short covering moved prices above the day's lows by the close.

Talk China was buying soy after returning from Lunar New Year also helped keep soybeans from falling further.

CBOT-SOYOIL - March down 0.97 cent at 31.76 cents a pound. Following soybeans lower. Weakness in crude oil also weighing on prices.

FCPO-KUALA LUMPUR, Jan 30 (Reuters) - Malaysian crude palm futures rose nearly 2 percent on Friday as more investors streamed back into the market, heartened by concerns of sharp falls in domestic production this month, traders said.

The benchmark April contract closed up 34 ringgit at 1,779 ringgit ($493.3) as traders were also taking positions ahead of a long holiday weekend. The Malaysian palm oil market will be closed on Monday.

Other traded contracts ranged between a 20 ringgit drop to gains of 40 ringgit <0#KPO:>. Overall volume shot up to 13,970 lots of 25 tonnes from 10,000 lots.

There is some talk that January production might have fallen by 20 percent, which is the result of plantations cutting down on fertilisers six months ago during the palm price slump," a head trader with a local brokerage said.

Output would then probably be 1.19 million tonnes in January compared with 1.48 million the month before, traders say.

REGIONAL EQUITIES-BANGKOK, Feb 2 (Reuters)-Asian and European stocks fell on Monday as more companies slashed earnings outlooks in the face of worsening global
economic conditions.

Singapore shares fell 2.4 percent to a more than 1-week low on Monday.Thailand's market <.SETI> plunged 2.3 percent to its lowest since Jan. 16, Indonesia <.JKSE> fell 1.7 percent and Vietnam <.VNI> dropped 1.9 percent. The Philippines <.PSI> bucked the trend, up 0.46 percent. Malaysia <.KLSE> was shut on Monday.

DJI Weekly: Sideways to bias downside potential

Market looks may move sideways to bias downside potential in near term as 8000 mark support violated. Resistance is now looking at 8300-8360. Downside support is pegged at 7449.

KLSE Weekly: in Sideways move

Nothing much changes on the immediate technical landscape as market was moving in sideways manner. We continue to look for the upside resistance at 900. Downside support is pegged at 868-853 followed by 835.

FKLI Weekly : in Consolidation mode

Market again back to consolidation mode. As for now, we are now looking for the resistance at 890-900. Downside support is pegged at 865-850.

FCPO Weekly: Market Momentum Weakened Further

Market momentum weakened further following 1800 mark failed to defend. Market looks may move sideways to lower in near term. We are now looking for the upside resistance at 1880-1900. While, downside support is pegged at 1625-1596 (gap left over on 4/1/2009).