Trader's Comment: CPO futures managed to minimized its losses as it recouped most of the losses on late covering.

CPO futures managed to minimized its losses as it recouped most of the losses on late covering. The overnight tumble in NYMEX crude oil prices and the sharp losses in CBOT soy oil saw Benchmark July09 gap down RM56 to open at 2390. Market sentiment remained uncertain as prices then began to hover between 2420-2385 level through out most of the sessions. Although Dalian palm had been trading at limit down prices the whole trading day and eCBOT soy oil inched lower, the concerns on supply tightness had limit the effect of weak external factors. Traders were confident that stock levels were still at relatively low level. The emerged of intra day short covering activities in late trading sent Benchmark July09 to bounced back again and hit intra day high at 2442 before it finally settled RM11 lower at 2435.

Trader's Comment: CPO futures surrendered some of its gains to end marginally higher after a volatile trading day.

CPO futures surrendered some of its gains to end marginally higher after a volatile trading day. Benchmark July09 was initially well supported as it bounced back from the low of 2393 and surged to intra day high at 2501 following the released of 1-20 April export data by private cargo surveyor ITS who reported and increased of 4.2%. However, market became more choppy after the second private cargo surveyor SGS reported an increase of merely 0.8% of the same period export data. It climbed to 2495 after opened lower in second session, but retreated to 2439 again and finally settled RM11 higher at 2446. Market sentiment had been uncertain especially after both private cargo surveyors released the export data that is within market expectations. External factors were also weak as Dalian palm edged slightly higher after giving up its earlier gains while eCBOT soy oil edged lower today.

Breaking News-RTRS-China looks at Indonesia to boost palm oil stocks

KUALA LUMPUR, April 20 (Reuters) - China, the world's top vegetable oil consumer, is looking to boost its palm oil inventories as stocks have slipped below the usual 400,000 tonne level, traders said on Monday.
China, however, would be buying more palm oil products from Indonesia, the world's top producer as regular supplier Malaysia is facing a supply squeeze.

Breaking News-RTRS-Asian buyers rush for palm oil cargoes as stocks drop

KUALA LUMPUR, April 20 (Reuters) - Buyers are on the hunt for palm oil cargoes, traders and industry officials said on Monday, as fears of a supply squeeze in Malaysia mounts.

Breaking News-RTRS-UPDATE 1-India PEC scraps 12,000 T palm oil import tender

NEW DELHI, April 20 (Reuters) - Indian state-run trading firm PEC Ltd on Monday scrapped a tender to import 12,000 tonnes of crude palm oil due to a poor response, government sources said.
"Only one bid was received," a government official, who did not wish to be identified, told Reuters, adding that PEC normally awards a contracts if at least three bidders are in the fray.
A Malaysian firm offered to supply crude palm oil at $680 per tonne at the eastern port of Kakinada, another official said.
Indian traders said the cancellation of the tender may have weakened the market sentiment.
"This could be one of the main reasons for prices closing at a lower level from the day's high," said B.V. Mehta, executive director at the Solvent Extractors' Association of India (SEA), a leading trade body.

Trader's Highlight

DJI-NEW YORK, April 20 (Reuters) - U.S. stocks slid more than 3 percent on Monday after weak results from Bank of America reignited concerns over the state of the banking industry and the economy.

The Dow Jones industrial average <.DJI> dropped 289.60 points, or 3.56 percent, to 7,841.73. The Standard & Poor's 500 Index <.SPX> tumbled 37.21 points, or 4.28 percent, to 832.39. The Nasdaq Composite Index <.IXIC> fell 64.86 points, or 3.88 percent, to 1,608.21.

Fueling more bank concerns were comments from J.P. Morgan Securities, which said it estimates U.S. banks to incur $400 billion more in losses from the credit crisis and expects there will be a need for more capital for certain institutions.

NYMEX-NEW YORK, April 20 (Reuters) - U.S. crude oil futures ended nearly 9 percent lower on Monday, pressured by economic concerns that caused a sharp drop on Wall Street and as the U.S. dollar rallied on safe-haven bids.

On the New York Mercantile Exchange, May crude , which is expiring on Tuesday, settled down $4,45, or 8.84 percent, at $45.88 a barrel, trading from $45.50, the lowest since $43.62 was hit on March 16, to $50.31.

CBOT-SOYBEANS - May down 32-1/2 cents per bushel at $10.18-1/2 per bushel.

Falling stock market, firm dollar and lower crude oil weighs on soy with market underpinned by big China soy buying and declining soy yields in South American harvest.

CBOT-SOYOIL - May down 1.32 cents per lb at 35.45 cents per lb.

Following soybeans as lower crude oil and falling stock market combined with firm dollar pressuring soyoil.

FCPO-JAKARTA, April 20 (Reuters) - Malaysian palm futures closed slightly firmer on Monday, giving up most of the day's gains, as the market consolidated after last week's supply tightness-inspired rally, traders said.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange rose 11 ringgit, or 0.45 percent, to 2,446 ringgit ($673.83), after going as high as 2,501 ringgit and as low as 2,393 ringgit.

Other traded months rose between 5 and 41 ringgit <0#KPO:>. Overall volume was heavy at 18,303 lots of 25 tonnes each, nearly doubled the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, April 20 (Reuters) - Southeast Asian stocks ended
mixed on Monday, with Singaporean banks retreating after adverse rating news while commodity-linked shares pushed the Thai market to three-month highs even though investors fled domestic sectors.

Malaysia <.KLSE> gained 0.3 percent, Indonesia <.JKSE> rose for a sixth day, up 1.7 percent, the Philippines <.PSI> lost 0.4 percent and Vietnam <.VNI> dropped 4.6 percent.

DJI Daily: Peakish

Market formed a round top following prices losing ground at 8000 mark. Thus, market likely to enter to a correction mode in near term. To the upside, resistance is at 8100-8200. Downside support remains at 7700 followed by 7500-7400 level.

KLSE Daily: Defended well

Immediate daily technical landscape remains positive as prices continue to defend well. As for now, we are looking for the immediate resistance at 969-970. Meanwhile, downside support is pegged at 953-942 followed by 925-922 (gap leftover on 10/4/2009).

FKLI Daily: toppish

Daily technical landscape looks little toppish. Thus, market may due for correction in near term market. We are now looking for the upside resistance at 974. while, downside support is pegged at 946.5 followed by 931-928.5 (gap left over on 10/4/2009).

FCPO Daily: shows tiredness

Market shows a little tiredness mode after few days of defend at above 2400 mark. Thus, correction mode is likely to extend in near term. We remain the upside resistance at 2540. To the downside, support is pegged at 2315-2300 followed by 2280-2250.