Trader's Comment: CPO futures continued its yesterday’s rally and ended sharply higher across the board.

CPO futures continued its yesterday’s rally and ended sharply higher across the board. The break out of the ascending triangle yesterday had attracted both aggressive short covering and speculative buying. This sent Benchmark Jun09 to hit the high at 2175 in the afternoon session before it settled RM89 higher at 2159. Daily volume remained heavy with 26,826 contracts changed hands. Global commodity market had been very supportive since the early trading. eCBOT soy oil rose more than 2% while Dalian palm ended higher. Asian time NYMEX crude oil also rebounded sharply from overnight’s losses to above $50 level again. On the other side, the strong regional equity market had also contributed a lot to the bullish sentiment in our local CPO market.

Breaking News-(BN) ECB May Cut Key Rate to 1% as Pressure for New Tools Mounts

ECB May Cut Key Rate to 1% as Pressure for New Tools Mounts
2009-04-01 23:00:00.0 GMT

By Simone Meier and Gabi Thesing
April 2 (Bloomberg) -- The European Central Bank may cut its key interest rate to a record low of 1 percent today, increasing pressure on policy makers to use new tools to fight the worst recession in more than 60 years.
ECB officials meeting in Frankfurt will lower the benchmark rate by half a percentage point, according to 49 of 55 economists in a Bloomberg News survey. Such a reduction would probably mark the end of the ECB’s current round of rate reductions, a separate survey shows.
The ECB will announce its decision at 1:45 p.m. in Frankfurt as leaders from the Group of 20 nations meet in London to discuss ways to rescue the global economy. ECB President Jean-Claude Trichet will hold a press conference at 2:30 p.m.
U.K. Prime Minister Gordon Brown is scheduled to brief reporters on the G-20 talks about two hours later.

Trader's Highlight

DJI-NEW YORK, April 1 (Reuters) - U.S. stocks climbed on Wednesday as factory and home sales data raised hopes the economic downturn is moderating, sparking a broad advance.

The data was enough to counter a report that showed U.S. private-sector job losses accelerated in March to 742,000, heightening concerns ahead of the government's monthly payroll numbers on Friday.

The Dow Jones industrial average <.DJI> gained 152.68 points, or 2.01 percent, to 7,761.60. The Standard & Poor's 500 Index <.SPX> added 13.21 points, or 1.66 percent, to 811.08. The Nasdaq Composite Index <.IXIC> climbed 23.01 points, or 1.51 percent, to 1,551.60.

NYMEX-NEW YORK, April 1 (Reuters) - U.S. crude oil futures ended down more than a dollar on Wednesday, wiping out Tuesday's gains, after government data showed crude stocks rose more than forecast while gasoline supplies jumped against expectations for a drop.

On the New York Mercantile Exchange, May crude settled down $1.27, or 2.56 percent, at $48.39 a barrel, trading from $47.26 to $48.96.

CBOT-SOYBEANS - May unchanged at $9.52 a bushel; new-crop November unchanged at $8.92.

Turns mixed as grains see a double-digit decline. Soy seeing lingering support from USDA's March 31 planting intentions report that forecast U.S. 2009 soy seedings 3.6 million acres below trade expectations. Estimated corn plantings were more than trade estimated at 85 million acres, compared to average trade estimate for 84.4 million.

CBOT-SOYOIL - May down 0.12 cent at 33.50 cents per lb. Slips as crude, soybeans fall.

FCPO-KUALA LUMPUR, April 1 (Reuters) - Malaysian palm oil futures settled up 3.5 percent at its highest close in more than six months on Wednesday as investors rushed to cover positions on fears of an imminent global vegetable oil supply squeeze.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange settled up 70 ringgit at 2,070 Malaysian ringgit, a level unseen since Sept. 30 last year. Other traded months rose between 31 and 75 ringgit <0#KPO:>. Overall volume more than doubled to 26,304 lots of 25 tonnes each, compared with the normal 10,000 lots.

REGIONAL EQUITIES-BANGKOK, April 1 (Reuters) - Stocks in Malaysia and Indonesia
rose more than 1 percent while Singapore eked out a slim gain on Wednesday as investors bought bank shares, with hopes for a global economic revival stirring appetite for risk in the region.

Malaysia <.KLSE> -- Southeast Asia's worst-performing market in March -- ended up 1.3 percent, with top bank Maybank surging 5.2 percent. CIMB rose 2.2 percent.

Singapore <.FTSTI> inched up 0.13 percent, losing most of its 1.6 percent rise in morning trade, with United Overseas Bank up 0.8 percent and the biggest lender, DBS Group , unchanged after rising nearly 2 percent earlier.

Citi Investment Research said it was negative on all Singapore banks due to its bearish view on Singapore's economy and it expected the benchmark stock index could head to the 1,500 level, from 1702.26 on Wednesday.

DJI Daily: remains in consolidation phase

Market remains under pressure with tough resistance maintain at 8000. Downside support remains pegged at 7300-7200 level.

KLSE Daily: sideways to bias upside potential

Immediate technical landscape has improved following a double digit gain. Market looks may move sideways to bias upside potential in near term with upside resistance stood 890-900. To the downside, support is pegged at 875-870.

FKLI Daily: Gaining ground

Market has gaining a little ground with support at 870-865 looks provide some cushion. Thus, market may move in sideways manner in near term. To the upside, resistance is looking at 890-895.

FCPO Daily: 2051-2058 violated!

Market violated 2051-2058 and close at day high at 2070 had strengthened further the upside momentum. Bull looks may continue to fight its battle but be aware that correction may come in anytime due to the recent strong rebound. We are now looking for the upside resistance at 2100-2150. To the downside, support is pegged at 2010-2002 (gap left over on 1/4/2009) followed by 1980-1970.