Trader's Comment: Palm oil futures recovered some of its losses to end off low on expectations of good export figures.

Palm oil futures recovered some of its losses to end off low on expectations of good export figures. Overnight NYMEX crude oil slid lower due to Dow Jones fell to 12 year low had triggered some aggressive selling activities during opening bell which sent Benchmark May09 to intra day low at 1828 after opened RM21 lower at 1859. However, the sold down was short lived as CPO prices didn’t go down any further and was well supported at 1830 level. It then started to climb back slowly through out the rest of the day, despite other vege oil market showed some losses. Market talk that 1-25 Feb export numbers likely to be better than same period in Jan (ITS-952T ; SGS-1,016T) prompted more buying activities in the afternoon session. Benchmark may09 hit the intra day high of 1878 before it finally settled RM9 lower at 1871, while other traded contract months had gained between RM10 to RM20.

CPO Tender Summary and Delivery Location as at February 2009

Breaking News-RTRS-UPDATE 1-Malaysia keeps more palm on ships as demand drags

KOTA KINABALU, Malaysia, Feb 23 (Reuters) - Malaysia's top palm oil producing state is storing at least 300,000 to 350,000 tonnes of the vegetable oil in ships as global demand drags, industry sources said on Monday. "Ideally, lean production means that less palm oil will be placed on the ships but demand has not been so good either. We don't have enough storage tanks in Sabah (state)," said a trading source familiar with the move at the state capital.
Although Eastern Sabah state on Borneo Island accounted for 35 percent of Malaysia's total palm output of 17.7 million tonnes last year, storage space has not kept up.
Traders said the state has 400,000-500,000 tonnes of palm oil storage capacity while its stockpiles range between 500,000 and 750,000 tonnes a month.
There are construction delays to palm oil storage tank at Lahad Datu port, which suggests there is no signs of easing supply bottlenecks

Breaking News-RTRS-S'pore GDP could shrink by over 5 pct in '09 - PM

SINGAPORE, Feb 23 (Reuters) - Singapore's economy could contract by more than a government forecast of between -2 and -5 percent this year if the global economy continues to shrink, the Business Times quoted Prime Minister Lee Hsien Loong as saying.

Trader's Highlight

DJI-NEW YORK, Feb 23 (Reuters) - Wall Street slumped to a 12-year low on Monday as investors lost faith that the U.S. government will be able to stabilize the financial system.

Adding to the bleak picture, CNBC reported that insurer American International Group could be forced into bankruptcy if new rescue talks with the government fail to secure it more funding.

The Dow Jones industrial average <.DJI> tumbled 250.73 points, or 3.40 percent, to 7,114.94. The Standard & Poor's 500 Index <.SPX> dropped 26.71 points, or 3.47 percent, to 743.34. The Nasdaq Composite Index <.IXIC> skidded 53.51 points, or 3.71 percent, to 1,387.72.

NYMEX-NEW YORK, Feb 23 (Reuters) - U.S. crude oil futures ended nearly 4 percent lower, sliding with Wall Street on concerns about the economy amid uncertainty about government steps to save ailing banks.

On the New York Mercantile Exchange new front-month April crude settled down $1.59, or 3.97 percent, at $38.44 a barrel, trading from $37.87 to $41.49.

CBOT-SOYBEANS - March up 10-1/4 at $8.72-3/4 a bushel.

Mild rebound after last week's slide to two-month low. Traders watching Dow for direction amid reports U.S. government may take a bigger stake in Citigroup.

CBOT-SOYOIL - March up 0.09 cent at 30.31 cents per lb. Following soybeans.

FCPO-JAKARTA, Feb 23 (Reuters) - Malaysian palm futures finished 2.5 percent higher on Monday to end a five-day losing streak, underpinned by a rally in rival soybean prices, traders said.

The benchmark May contract rose 45 ringgit, or 2.5 percent, to 1,880 ringgit ($515) per tonne.

Other traded contracts rose between 15 and 26 ringgit. Overall volume was 12,382 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Feb 23 (Reuters) - Major Southeast Asian stocks rose
on Monday, with Singapore leading gainers thanks to financials and big caps such as DBS Group and Singapore Telecom, while gains in telecom shares helped Indonesia end a two-day fall.

Singapore's index <.FTSTI> jumped 2.2 percent with top lender DBS Group
rising 1.1 percent and telecom firm Singapore Telecom climbing 4.2 percent.

Malaysian stocks <.KLSE> inched down 0.2 percent, weighed down by palm planters, with second-largest palm oil producer IOI Corp down 1.6 percent after a drop in second-quarter net profit and a warning about full-year results.

DJI Daily: Where is the bottom?

Market slumped to a 12-year lows had dampened further the already weak daily technical outlook. We expect more downside room in near term following the violation of the underline support at 7197. We are now looking for the downside support at 6900-6300. For upside, resistance is at 7800-7900.

KLSE Daily: may cover downside gap at 884-880

Market remained in sideways move and holding above 880 mark. However, market looks a little tired to maintain its recent posture. It may want to cover the downside gap at 884-880 (gap left over on 6/2/2009)followed by the next support at 868-867. Upside resistance is at 900 mark.

FKLI Daily: Upside not convincing

Market recovered a little from last week losses yet failed to reach 900 mark. We are now looking for the upside resistance at 895-900. While, downside support is pegged at 865-858.

FCPO Daily: in range trading

Market stuck in the range of 1800-1900 level. The breakout of either one may give us more clearer direction in near term market. We are now looking for the resistance at 1900-1910. Support is maintain at 1830 followed by 1798-1790 (gap left over on 4/2/2009).