Trader's Comment: Palm oil futures recovered from yesterday’s losses to end generally higher on late covering.

Palm oil futures recovered from yesterday’s losses to end generally higher on late covering. Benchmark open RM24 higher at 1996, tracking the firm Dalian palm prices in the early trades coupled with the rebound of crude oil to above $53 level during Asian time trading after its overnight fall of more than $1. It eased off initially to intra day low of 1980 but bounced back again to close at 1998 level before lunch. The stable external vege oil market had also provided some support to the CPO market. eCBOT soy oil turned positive in late trading while Dalian palm ended higher. CPO prices traded in a tight range of 2010-1997 in the second session before some short covering activities emerged in late trading and pushed up Benchmark Jun09 to settle RM63 higher at 2035.

Breaking News-RTRS-Brazil soy exports strong on China demand - Abag

SAO PAULO, March 25 (Reuters) - Brazilian soybean exports remain at robust levels despite the international financial crisis, due to strong demand for imports of the oilseed from China, the world's largest importer of soy, the Brazilian Agribusiness Association Abag said Wednesday.

Trader's Highlight

DJI-NEW YORK, March 25 (Reuters) - U.S. stocks rose in a late rally on Wednesday as unexpectedly strong housing and durable goods data fueled hopes the economy is finally on the mend, offsetting concerns the United States may struggle to fund
plans to pull the economy out of recession.

The Dow Jones industrial average <.DJI> gained 89.84 points, or 1.17 percent, to 7,749.81. The Standard & Poor's 500 Index <.SPX> rose 7.76 points, or 0.96 percent, to 813.88. The Nasdaq Composite Index <.IXIC> added 12.43 points, or 0.82 percent, to 1,528.95.

NYMEX-NEW YORK, March 25 (Reuters) - U.S. crude oil futures ended more than 2 percent lower on Wednesday, weighed down by data showing domestic crude stocks rose to their highest level in more than 15 years.

On the New York Mercantile Exchange, May crude settled at $52.77 a barrel, down $1.21, or 2.24 percent, after trading from $51.86 to $54.18.

CBOT-SOYBEANS - May down 16 cents at $9.51 per bushel.

Profit-taking after rally early this week that was led by a farmers strike in Argentina. Lower crude oil also weighing on market.

U.S. Census Bureau to issue its February crush data on Thursday.

CBOT-SOYOIL - May up 0.10 cent at 33.37 cents per lb. Lower crude oil and soy weigh on soyoil in addition to profit-taking pressure.

FCPO-JAKARTA, March 25 (Reuters) - Malaysian crude palm oil futures closed lower on Wednesday for the second consecutive day on further profit taking, although news of better-than-expected exports capped losses, traders said.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange dropped 8 ringgit, or 0.4 percent, to 1,972 ringgit ($543) per tonne.

Other traded months were mixed <0#KPO:>. Overall volume was 11,164 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, March 25 (Reuters) - Southeast Asian stocks were mixed on Wednesday as doubts about the U.S. government's plan to rid banks of toxic debt emerged, dragging Singapore's stock market down from a 6-week high.

The Straits Times Index <.FTSTI> ended down 0.86 percent after a 2.5 percent gain on Tuesday.Malaysia's index <.KLSE>, the region's third best performer this year after Jakarta and Manila, ended with a 0.1 percent
rise.

Elsewhere in the region, Manila's stock index <.PSI> climbed 1.14 percent, and Vietnam <.VNI> edged up 2.6 percent, adding to Tuesday's 4 percent rise.

Trader's Comment: CPO futures ended marginally lower after a range trading

CPO futures ended marginally lower after a range trading. Benchmark Jun09 hovered between 1985-1955 level through out the day before it finally settled RM8 lower at 1972. Both private cargo surveyors released their own 1-25 Mar export data today, where ITS & SGS reported a decline of 9.2% and 5.6% respectively. Nevertheless, CPO prices did not react too much on these data as traders had been expecting a much lower figure since yesterday. Overall market was uncertain today. ECBOT soy oil and Dalian palm fell more than 1% in Asian time trading. On the other hand, there were news saying that Indonesia decided to keep its 0% palm oil export tax in Apr and raising the CPO base export price to USD515 per tonne from USD480 per tonne in Mar, while Indian government had issued a formal order to abolish 20% import tax on crude soy oil.

DJI Daily: Forming base

Market momentum strengthen further following 7800 mark tested at intra-day basis. Looks market is trying harder to form a more concrete base. We now looking for the upside resistance at 8000. Downside support is adjusted to 7300-7200.

KLSE Daily: Market is firming up

We maintain our view sideways to upside potential in near term market. Resistance and support is at 900 and 870-868 level respectively.

FKLI Daily: May challenge 892-900

Market maintained its upside move and looks may want to challenge upside resistance at 892-900 level. Downside support is pegged at 870-865.

FCPO Daily: Correction mode may continue

Market retreated in tight range manner. Correction mode looks may continue in near term. Upside resistance is stood at 2051-2058. While, downside support remained at 1950-1945 followed by 1900.