Trader's Comment: Palm oil futures recovered from yesterday’s losses on late covering after choppy trading in earlier session.

Palm oil futures recovered from yesterday’s losses on late covering after choppy trading in earlier session. Prices were very volatile in the morning session as Benchmark July immediately retreated sharply to intra day low of 2413 after opened at 2479. It managed to bounce back to 2457 but was further sold down again and closed at 2414 before lunch break. Price movement became more “friendly” in the afternoon session as Benchmark July09 open slightly higher at 2444 and started to hover between 2450-2470 level. The emerged of late covering activities pushed prices to intra day high of 2490 before it finally settled RM24 higher at 2480. Traders were still cautiously waiting for tomorrow’s end-April export data although there had been market talk that export figure could be around 1.2 million tones. Dalian palm regained from earlier losses to end higher while eCBOT soy oil also edged higher today. Daily volume remained good with 24,260 contracts changed hands.

Breaking News-RTRS-Oil World cuts Argentine, Brazil soy crop forecast

HAMBURG, April 28 (Reuters) - Hamburg-based oilseeds analysts Oil World again cut its forecasts for soybean crops in Argentina and Brazil on Tuesday which it said would raise global demand for U.S. supplies.
Argentina's 2009 soybean crop was now forecast at 36.50 million tonnes from 46.7 million tonnes in 2008.
This is down 0.5 million tonnes from its estimate on April 21 and down by 3.5 million tonnes from its April 14 estimate.

Trader's Highlight

DJI-NEW YORK, April 28 (Reuters) - U.S. stocks fell on Tuesday as fresh worries that major banks may need to raise more money offset more reassuring economic data that suggested the worst may be over and a big dividend boost from IBM.

Worries also lingered over the economic impact from the threat of a flu pandemic, as New Zealand and Israel were the latest countries to confirm cases of a new strain of flu linked to dozens of deaths in Mexico.

The Dow Jones industrial average <.DJI> slipped 8.05 points, or 0.10 percent, to 8,016.95. The Standard & Poor's 500 Index <.SPX> dropped 2.35 points, or 0.27 percent, to 855.16. The Nasdaq Composite Index <.IXIC> declined 5.60 points, or 0.33 percent, to 1,673.81.

NYMEX-NEW YORK, April 28 (Reuters) - U.S. crude oil futures were down in post-settlement trading on Wednesday after inventory data from the American Petroleum Institute showed domestic crude stocks rose much more than expected last week.

On the New York Mercantile Exchange at 1700 p.m. EDT (2100 GMT), June crude was down 85 cents, or 1.7 percent, at $49.29 a barrel. It earlier settled down 22 cents, or 0.44 percent, at $49.92, trading from $48.55 to $50.19.

CBOT-SOYBEANS - May down 15-1/4 cents at $9.89-1/2 per bushel.

Talk of slowdown in U.S. export sales of soybeans including talk China backing away from U.S. soy weighing on market in addition to unwinding of old-crop/new-crop spreads.

Talk China cancelled 4-5 cargoes of U.S. soy.

USDA said 3 percent of the U.S. soybean crop had been seeded, below the 5 percent five-year average but in line with trade expectations for 3 percent.

CBOT-SOYOIL - May down 0.64 cent at 34.90 cents per lb. Pressured by lower soybeans and lower crude oil.

FCPO-KUALA LUMPUR, April 28 (Reuters) - Malaysian crude palm oil futures dropped 1 percent on Tuesday as weaker vegetable oil markets priced in fears that the outbreak of swine flu in Mexico would reduce demand for meat and grains.

Palm oil prices made strong gains earlier in the trading session, crossing the 2,500 ringgit ($690.6) level as expectations of strong demand and tight supplies lifted the market.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange fell 25 ringgit to settle at 2,456 ringgit ($678.4) per tonne by after going as high as 2,530 ringgit.

REGIONAL EQUITIES-BANGKOK, April 28 (Reuters) - Singapore shares fell for a third day to near three-week lows on Tuesday, leading declines in Southeast Asian stocks in a market unnerved by worries about the potential economic fallout from a swine flu outbreak.

Singapore's benchmark index <.FTSTI> eased 0.6 percent, recovering some of an earlier 1.5 percent loss to its lowest since April 8, while Malaysia's stock index <.KLSE> dropped 1.5 percent and Thailand's SET index <.SETI> slid 0.5 percent.

Asian stocks elsewhere declined for a second day, with investors fretting not only about swine flu but also the results of U.S. bank stress tests, especially after a report that Bank of America and Citigroup might need still more capital.

DJI Daily: too little

Market continue its sideways move. Thus, we continue to look for the resistance at 8100-8200. While, downside support is pegged at 7700 followed by 7500-7400 level.

KLSE Daily: Say bye bye to 1000 mark

Immediate daily technical landscape hurt by straight two days losses. Market looks have to say goodbye to 1000 mark and correction likely to extend in near term. We are now looking for upside resistance at 996. Meanwhile, downside support is pegged at 958-950.

FKLI Daily: Bearish reversal confirmed

Another day of sharp losses had dampened the early bullish picture. Thus, market is likely to move sideways to downside potential in near term following bearish reversal sign is confirmed. As for now, we look for the upside resistance at 1003. While, downside support is pegged at 960-950

FCPO Daily: Losing upward momentum

Upward momentum weakened further after market fail to cover the full upside gap left over at 2514-2535 and close in negative territory. Thus, market may move sideways to downside potential in near term. As for now, we are looking for the upside resistance at 2530-2535 (unfill gap left over since 27/4/2009). To the downside, immediate support is pegged at 2420-2400 followed by 2320-2300.