Trader's Comment: CPO futures ended mix after it surrendered some of its earlier gains amid pre-weekend covering.

CPO futures ended mix after it surrendered some of its earlier gains amid pre-weekend covering. Profit taking activities immediately took place as Benchmark Apr09 slid down till intra day low of 1854 before morning session closed, after it opened at intra day high of 1908 following overnight CBOT soy oil and NYMEX crude oil rallied higher. It then hovered between 1892-1862 level through out the second session before finally settled almost unchanged at 1880. eCBOT soy complex and Dalian palm had traded higher during Asian time trading, providing some support to our local CPO prices. Generally, traders were still cautious ahead of long weekend even though overall volume increased.

Breaking News-(BN) Malaysia May Take ‘Radical’ Steps to Boost Economy, Bernama

By Angus Whitley
Feb. 6 (Bloomberg) -- Malaysian Finance Minister Najib Razak said he’s prepared to implement “radical” measures to stimulate the economy, state news service Bernama reported late yesterday.
The government’s second stimulus plan, to be announced soon, will be be much bigger than November’s 7 billion-ringgit
($1.9 billion) package, Bernama reported, citing Najib, who is also Malaysia’s deputy prime minister.

Breaking News-RTRS-China declares emergency as drought bites

BEIJING, Feb 5 (Reuters) - China has declared an emergency over a long dry spell threatening crops and farmers' incomes in the rural heartland, official media said on Thursday.
The drought gripping parts of central and northern China has sent Zhengzhou wheat futures prices up 5 percent this week but physical prices have not moved, with most investors confident the country's reserves and last year's big harvest can offset any fall in wheat production this spring.

Breaking News-RTRS-UPDATE 1-Argentina 08/09 soy crop 42.5 mln T - USDA attache

WASHINGTON, Feb 4 (Reuters) - Argentina's soybean
production for 2008/09 was cut to 42.5 million tonnes as a
result of a smaller harvested area and a drop in yield due to
severe drought, according to a U.S. Agriculture Department
attache report released on Wednesday.

Breaking News-RTRS-US soy oil stocks 2.660 bln lbs in Dec - Census

WASHINGTON, Feb 5 (Reuters) - U.S. soybean oil stocks
totaled 2.660 billion lbs in December, compared to 2.535
billion lbs in November, the U.S. Census Bureau said on
Thursday.
The data were released as part of the Census Bureau's
monthly Fats & Oils Production and Stocks report.

Breaking News-RTRS-UPDATE 1-Malaysia 2nd economic stimulus to come by March-source

KUALA LUMPUR, Feb 5 (Reuters) - Malaysia is set to introduce a second round of spending in February or March and it will be far more wide-ranging than the first fiscal boost announced last November, a source familiar with government thinking said.
The Malaysian government, which is forecasting economic growth of 3.5 percent this year, will also revise its forecasts in the light of weaker exports, lower commodity prices and an expected fall in foreign investment, the source said.

Trader's Highlight

DJI-NEW YORK, Feb 5 (Reuters) - U.S. stocks rallied on Thursday on investor hopes that the government's plan to shore up the financial system will include a change in accounting rules that would stem bank write-downs and spur lending.

The Dow Jones industrial average <.DJI> rose 106.41 points, or 1.34 percent, to 8,063.07. The Standard & Poor's 500 Index <.SPX> gained 13.62 points, or 1.64 percent, to 845.85. The Nasdaq Composite Index <.IXIC> climbed 31.19 points, or 2.06
percent, to 1,546.24.

A day before the release of the January non-farm payrolls report, investor sentiment got a boost from talk that Washington would suspend an accounting requirement on the
recognition of losses that has resulted in billions of write-downs for banks.

The Obama administration is due to announce its bank rescue plan next week.

There was also encouraging news on the earnings front on Thursday.

NYMEX-NEW YORK, Feb 5 (Reuters) - U.S. crude oil futures rose on Thursday lifted by a stock market rally and expectations that demand may start to rebound as OPEC cuts start to hit supplies.

On the New York Mercantile Exchange, March crude rose 85 cents, or 2.11 percent, to settle at $41.17 a barrel, after trading from $39.46 to $41.25.

April crude rose $1.52 to settle at $45.76, putting the premium to March at more than $4. May crude rose $1.70 to settle at $48.38 a barrel.

CBOT-SOYBEANS - March up 30-1/2 cents at $9.80 a bushel.

Forecasts for drier weather in Argentina, signs China was buying soy and tight stocks boost market. Also supported by U.S. ag attache trimming estimate for Argentine soy production and Brazil's government agency Conab reducing forecast for Brazil soy crop.

Argentine crop conditions slowly improve after rains. Mostly favorable weather in Brazil but moisture requirement for crops quite high at this time.

Conab, Brazil's government Crop Supply Agency, pegs Brazil's soy crop 57.2 million tonnes, down from its January estimate for 57.8 million and below USDA's January outlook for 59.0 million.

CBOT-SOYOIL - March up 0.70 cent at 33.05 cents a pound. Following strength in soybean market.

FCPO-KUALA LUMPUR, Feb 5 (Reuters) - Malaysian crude palm futures ticked up 1.8 percent on Thursday to hit a new one-week high on signs of a rundown in domestic inventories although sentiment was dampened by slow shipments, dealers said.

The benchmark April contract on the Bursa Malaysia Derivatives gain 34 ringgit to 1,879 ringgit ($510.5), a level unseen since Jan. 22.

REGIONAL EQUITIES-BANGKOK, Feb 5 (Reuters) - Most Southeast Asian stock markets
rose on Thursday, with optimism over government policy bolstering buying of Malaysian big caps such as Maybank and earnings in Thailand inducing buying in shippers such as Precious Shipping.

But in Singapore the main index <.FTSTI> erased early gains to fall 0.2 percent, with banks sliding amid domestic economic worries.

Singapore's finance minister said he expected the economic downturn to worsen, after the country fell into recession last year.

DJI Daily: Hovering .....

Market was hovering around 7900-8000 mark and struggle for surviving. We maintain the resistance and support at 8300-8400 and 7449 level respectively.

KLSE Daily: Remains same posture

Market likely to move in sideways for near term market. We maintain the upside resistance at 888-889 (gap left over on 20/1/2009). Downside support is at 868-867.

FKLI Daily: Sideways.......

Market looks firm as prices manage to recover to close in positive territory. However, more strength is needed to draw a more clearer picture. Thus, consolidation phase remains taking place. Currently, we continue to look for the upside resistance at 880-890 Downside support is pegged at 858 followed by 845-840.

FCPO Daily: Eyeing upside gap at 1913-1935

Market violated the support at 1870-1880 and close higher for consecutive four trading day. Market looks may want to challenge the upside gap left over on 13/1/2009 at 1913-1935. While, downside support remains at 1798-1790 (gap left over on 4/2/2009) followed by 1720.