Trader's Comment: CPO futures extended from yesterday’s losses as traders continue to book profit

CPO futures extended from yesterday’s losses as traders continue to book their profit after prices rallied strongly since last week. New Benchmark July was initially well supported as it hovered between 2443-2412 through out the morning session on the back of higher soy oil prices in the early Asian time trading. However, sellers became more aggressive in the afternoon session. Benchmark July09 began to fall all the way down to intra day low of 2347 in late trading before it finally settled RM40 lower at 2358. External market was mix today as eCBOT soy oil turned lower when it surrendered it earlier gains while Dalian palm edged higher. Basically market is in correction phase after recent strong rally.

Breaking News-RTRS-UPDATE 1-Indonesia may keep CPO export tax at zero pct in May

JAKARTA, April 16 (Reuters) - Indonesia may keep its palm oil export tax at zero percent in May, despite a recent rise in palm oil prices, Trade Minister Mari Pangestu said on Thursday.

Trader's Highlight

DJI-NEW YORK, April 15 (Reuters) - U.S. stocks rose on Wednesday amid numerous signs the recession could be abating and data from American Express signaled the ability of some consumers to pay their bills is stabilizing.

The rally was spurred by positive comments from some major banks and hopes that the economy was showing signs of stabilization, but those hopes were dented by Tuesday's
unexpected drop in retail sales.

After a choppy session, the Dow Jones industrial average <.DJI> gained 109.44 points, or 1.38 percent, to 8,029.62. The Standard & Poor's 500 Index <.SPX> rose 10.56 points, or 1.25 percent, to 852.06. The Nasdaq Composite Index <.IXIC> added
1.08 points, or 0.07 percent, to 1,626.80.

NYMEX-NEW YORK, April 15 (Reuters) - U.S. crude oil futures ended lower on Wednesday, pressured by data showing domestic crude stocks rose last week to their highest in nearly 19 years.
Losses were sharply pared, however, as Wall Street rose on better-than-expected U.S. manufacturing data, and that helped crude recover from the day's lows.
On the New York Mercantile Exchange, May crude settled down 16 cents, or 0.32 percent, at $49.25 a barrel, trading from $48.91 to $50.79.

CBOT-CHICAGO, April 15 (Reuters) - U.S. soybeans climbed for a fifth straight session on Wednesday and hit a fresh three-month high as China, the world's largest soy importer, keeps buying soy.

There was talk the Brazilian soybean export market was on fire and export sources said Brazil sold six soybean cargoes with four destined for China and two headed for Taiwan.

FCPO-KUALA LUMPUR, April 15 (Reuters) - Malaysian palm futures fell 1.1 percent on Wednesday, easing from an 8-month high notched earlier in the session as some investors booked profits on a rally fuelled by speculation of a drawdown in stocks.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange rose as much as 55 ringgit to 2,540 ringgit ($703.4) per tonne, a level unseen since Sept. 3. The contract settled down 26 ringgit at 2,459 ringgit.

Other traded months fell between 22 and 41 ringgit except the front-month which rose 20 ringgit <0#KPO:>. Overall volume doubled to 21,681 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-Elsewhere in the region, Singapore's Straits Times Index
<.FTSTI> finished 0.47 percent higher, driven by property shares.

The Kuala Lumpur Composite <.KLSE> inched 0.31 percent higher. The region's smaller markets fell. Philippines <.PSI> lost
0.72 percent while Vietnam shares <.VNI> dropped 2.24 percent.

DJI Daily: Conlidation phase likely to extend

Nothing much changes on the immediate technical landscape as market remains holding around 8000 mark. Thus,consolidation phase is likely to extend in near term. Resistance and support maintain at 8100-8200 and 7700 level respectively.

KLSE Daily: Upward momentum remains intact

Upward momentum remains intact. As for now, we continue to look for the resistance at 961-965. Meanwhile, downside support is maintain at 936 followed by 925-922 (gap leftover on 10/4/2009).

FKLI Daily: Inching up

Another fresh high for the year at 967.5. Thus, we are now looking for the immediate resistance at 970 followed by 980-990. To the downside, support is pegged at 942.5-940 followed by 931-928 (gap left over on 10/4/2009).

FCPO Daily: TOP at 2540?

Market gave up all its early gain after hitting the day high at 2540 to end lower. A long upper shadow candle printed after the recent strong rallied may indicate that market is entering to a correction mode in near term. Thus, we are now looking for the upside resistance at 2540 followed by 2600. To the downside, support is pegged at 2400-2385 followed by 2315-2300.