Trader's Comment: Palm oil futures surrendered most of its earlier gains to end mix

Palm oil futures surrendered most of its earlier gains to end mix on India’s moves to cut import duty on soy oil. Benchmark Jun09 immediately surged to intra day high of 1945 after opened RM20 higher at 1925 tracking the strong rebound of NYMEX crude oil and eCBOT soy oil during their early trading in Asian time. It then hovered between 1935-1925 until it closed at 1927 before lunch time. However, market sentiment in afternoon session began to change after the released of news stating that India government is doing away with custom duty on soy oil to narrow its premium over imported palm oil. CPO prices started to fall and hit intra day low of 1893 before it bounced back slightly again to settle RM6 higher at 1911. total daily volume stood at 21,334 contracts changed hands.

Breaking News-India’s scapped import duty on soya oil to reduce premium over palm oil

NEW DELHI: The government is doing away with Customs duty on soya oil to narrow its premium over imported palm oil, the world’s cheapest cooking oil and India’s favourite fat, in a highly price-conscious market. Eight out of 10 cans of imported vegetable oil in India now contain palm oil.

A notification will be issued shortly by the finance ministry, said an official who did not wish to be named.

Breaking News-RTRS-UPDATE 1-Argentine farmers to press Congress on export taxes

BUENOS AIRES, March 17 (Reuters) - Argentine farmers said they will pressure Congress this week to lower export taxes after Tuesday's talks with the government did little to break a political deadlock that has shaken grains markets.

Trader's Highlight

DJI-NEW YORK, March 18 (Reuters) - U.S. stocks rallied on Wednesday after the Federal Reserve surprised Wall Street when it said it will buy long-term Treasury bonds for the first time in four decades in an effort to revive the recession-hit
economy.

The Dow Jones industrial average <.DJI> gained 90.88 points, or 1.23 percent, to 7,486.58. The Standard & Poor's 500 Index <.SPX> advanced 16.23 points, or 2.09 percent, to 794.35. The Nasdaq Composite Index <.IXIC> rose 29.11 points, or 1.99 percent, to 1,491.22.

The Fed said it will buy up to $300 billion worth of longer-term U.S. government debt over the next six months and expand purchases of mortgage-related debt to help ease credit market conditions in its latest action to lower borrowing costs.

NYMEX-NEW YORK, March 18 (Reuters) - U.S. crude oil futures settled lower, but pared losses and turned positive after the close on Wednesday when the U.S. Federal Reserve said it was planning to buy a big chunk of long-dated Treasury securities,
sending the dollar sharply lower.

On the New York Mercantile Exchange settled down $1.02 at $48.14 a barrel. It traded to a low of $46.92 but moved into positive territory and hit a high of $49.87, following the Fed's announcement. The April crude oil contract expires on Friday.

CBOT-SOYBEANS - May up 2 cents per bushel at $9.15 per bushel.

Tight soy stocks and firm cash lifting prices in addition to concern about Argentine soy exports amid an ongoing conflict between farmers and government. Soy/corn spreading also supportive.

CBOT-SOYOIL - May down 0.39 cent per lb at 30.92 cents per lb. Pressured by lower crude oil.

FCPO-KUALA LUMPUR, March 18 (Reuters) - Malaysian crude palm oil futures fell 0.9 percent on Wednesday as players booked profits on fears demand would not flow in at above current price levels.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange settled down 17 ringgit to 1,905 ringgit ($517.6) per tonne after going as high as 1,948 ringgit.

Other traded months were marginally lower <0#KPO:>. Overall volumes stood at 13,530 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, March 18 (Reuters) - Singapore shares <.FTSTI> rose
more than 1 percent as Southeast Asian stocks advanced on Wednesday, led by banks such as DBS Group , Public Bank , Bangkok Bank and Bank Mandiri .

The Straits Times Index <.FTSTI> closed 1.1 percent higher, Malaysia's index <.KLSE>, the region's second best performer this year after Jakarta, rose for a second day to close up 0.7 percent at a 1-week high. Thailand's SET index <.SETI> closed up 0.9 percent and Indonesia's index <.JKSE> ended 0.8 percent higher.

DJI Daily: strengthen further

Market strengthened further with another closing in positive territory and violated the immediate resistance at 7400-7450. Upside resistance is now at 7800-8000. While, support is stood at 7100-7000.

KLSE Daily: potential to move sideways to higher

Immediate daily technical outlook looks better despite market touch and go at 850 level in intra-day basis. Market is potentially to move sideways to higher in near term with immediate resistance stood at 855-858 followed by 863. Downside support is pegged at 840-835.

FKLI Daily: improving...

Market improved as prices stayed firm at 850 level. We believe more short covering activities may continue and market may move sideways to bias little upside potential in near term. We maintain the upside resistance at 856-858 followed by 860-865. Downside support is pegged at 833-830 level.

FCPO Daily: looks little tiring

Market retreated to close at day low yet above 1900 mark. Market looks little exhausted after few attempts failed to break through 2000 mark convincingly.
Immediate daily technical landscape remains neutral in sideways mode. We continue to look for the immediate downside support at 1900-1890 followed by 1840-1830. While, upside resistance is at 1940-1950 followed by 1970-2000.