Trader's Comment: CPO futures furiously broke above 2500 level on late trading and rallied strongly to 7 month high.

CPO futures furiously broke above 2500 level on late trading and rallied strongly to 7 month high with triple digit gains on record volume. Benchmark July09 initially climbed slowly after second session opened but gradually became more aggressive. 2500 level was then easily broken and this triggered a wave of panic covering activities. Buyers became more furious and pushed Benchmark July09 to the high of 2586 before it finally settled RM105 higher at 2580. External vege oil market also follow suit as they erased their early losses to trade higher in late trading. Daily volume had hit the all time high with 33,490 contracts changed hands.

Breaking News-RTRS-Russian palm imports to halve on higher tax -trade

KUALA LUMPUR, April 22 (Reuters) - Russia, a rising vegetable oil buyer, may halve imports of palm oil to 420,000 tonnes this year after it doubles an import tariff from June to protect domestic producers, Malaysian traders said on Wednesday.
The Russian Dairy Union had earlier said imports of tropical oils were usually above 900,000 tonnes over the last five years, with palm oil comprising the bulk of the shipments.

Breaking News-RTRS-Argentine soy output seen at 36.2 mln T - exchange

BUENOS AIRES, April 22 (Reuters) - Argentina's 2008/09 soy harvest is seen falling to 36.2 million tonnes, less than the previous estimate of 37 million tonnes, Buenos Aires Grains Exchange said on Wednesday.

Trader's Highlight

DJI-NEW YORK, April 22 (Reuters) - The Dow and S&P fell on Wednesday after Morgan Stanley revived concerns about the banking sector and the wider economy after it posted its second straight quarterly loss and slashed its dividend.

The Dow Jones industrial average <.DJI> dropped 82.99 points, or 1.04 percent, to 7,886.57. The Standard & Poor's 500 Index <.SPX> slid 6.53 points, or 0.77 percent, to 843.55. The Nasdaq Composite Index <.IXIC> gained 2.27 points, or 0.14 percent, to 1,646.12.

NYMEX-NEW YORK, April 22 (Reuters) - U.S. crude oil futures ended higher on Wednesday, taking a cue from Wall Street, which gained on positive corporate outlooks and as energy traders shrugged off government data showing a larger-than-expected build in domestic crude stocks last week.

On the New York Mercantile Exchange, front-month June crude settled up 30 cents, or 0.62 percent, at $48.85 a barrel, trading from trading from $47.70 to $49.09.

CBOT-SOYBEANS - May up 8 cents at $10.46 a bushel.

Old-crop contracts boosted by strong Chinese buying of U.S. soy and disappointing Argentine soy harvest. New-crop contracts, with November down 7 cents at $9.24, on prospects for U.S. soybean acres to increase at the expense of corn.

Buenos Aires Grain Exchange lowered estimate of Argentina's 2009 soy crop to 36.2 million tonnes, down from previous estimate for 37 million.

U.S. Census Bureau to issue monthly crush data on Thursday.

CBOT-SOYOIL - May down 0.04 cent at 36.09 cents per lb. Down in choppy trade but underpinned by strength in old-crop soybeans.

FCPO-KUALA LUMPUR, April 22 (Reuters) - Malaysian crude palm oil futures rose 1.6 percent on Wednesday to the highest close in a week, rebounding from falls a day earlier as worries about tight global vegetable oil supplies re-surfaced, traders said.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange gained 40 ringgit to 2,475 ringgit ($679.39), the highest closing level since April 14.

Other traded months rose between 21 and 237 ringgit.<0#KPO:> Overall volume was more than double the usual level at 21,098 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, April 22 (Reuters) - Southeast Asian shares were mixed on Wednesday, as investors sold banking shares led by Singapore's DBS Group and Thailand's Bangkok Bank on fears of more pain in the U.S. banking sector.

Singapore's Straits Times Index <.FTSTI> led the decline with a 2.3 percent fall, while Thailand <.SETI> dipped 1.2 percent and Indonesian shares <.JKSE> ended 0.8 percent lower. The Malaysian index <.KLSE> gained 0.2 percent while Vietnam
<.VNI> added 2.9 percent.

Trader's Comment: CPO futures hovering at higher level today on the back of some supportive external factors.

CPO futures hovering at higher level today on the back of some supportive external factors. The strong close of overnight NYMEX crude oil and CBOT soy oil saw Benchmark July09 opened RM18 higher at 2453 and thereafter hovering between 2463-2439 level on the remaining morning session. Prices turned slightly weaker during second session opening as it suddenly slid to intra day low of 2423. However, it was quick to bounce back again and continue trading in the earlier range. Some late covering sent Benchmark to intra day high pf 2481 before it finally settled RM40 higher at 2475. The positive external market had provided steady support to CPO market. eCBOT soy oil extended overnight’s gains to inched higher today while Dalian palm also rose steadily. On the other side, Oilworld had also forecasted Argentina’s 2009 soybean harvest to reduce by 3 million tones due to dry weather. Meanwhile, there was news that Russia may halve their palm oil import to 420k tones this year as they had doubled their import tariff from June.

FCPO Daily: in consolidation mode

Market likely to extend its consolidation mode to move in sideways manner. Thus, we maintain the upside resistance at 2540. To the downside, support is remains at 2315-2300 followed by 2280-2250.

FKLI Daily: show little tiredness mode

Profit taking activities were evident after hitting a fresh new high at 980. Market looks little tiring with the recent sharp rise. We are now looking for the upside resistance at 980-985. While, downside support is pegged at 955-950.

KLSE Daily: maintain upward posture

Market maintained its upward posture as resistance at 969-970 was tested. As for now, we are looking for upside resistance 980-985. Meanwhile, downside support is pegged at 968-966 followed by 957-953.

DJI Daily: losing ground

Market continue to lose ground after fail to sustain at 8000 mark. We continue to look for the resistance at 8100-8200. While, downside support is pegged at 7700 followed by 7500-7400 level.