Trader's Comment: Palm oil futures surrendered its earlier gains to lower on pre-weekend profit taking activities.

Palm oil futures surrendered its earlier gains to lower on pre-weekend profit taking activities. Prices initially showed some strong moves in the early trading following Private Cargo Surveyors ITS released its friendly export data that reported an increase of 1.7% for the period of 1-15 May. Benchmark July09 opened RM36 higher at 2720 and surged to intra day high of 2753 before morning close at 2740. However, the release of news during lunch break that the first case of A (H1N1) infection confirmed by Malaysia’s Health Ministry had given traders the excuse to sell aggressively for the remaining session. This sent Benchmark July09 to the intra day low of 2655 in late trading before it finally ended RM21 lower at 2665. External market turn mix in late Asian time trading. Dalian palm gave up its earlier gains to end lower while eCBOT soy oil inched slightly higher.

Breaking News-RTRS-UK firms struggle to sell "green" palm oil -AAK

KUALA LUMPUR, May 14 (Reuters) - The British unit of Swedish oils and fats manufacturer AarhusKarlshamn (AAK) may have to offer discounts on a consignment of eco-friendly palm oil that is too expensive for consumers, an official said on Thursday.
The slow uptake of palm oil sourced from estates in top producers Malaysia and Indonesia that do not clear rainforests and destroy wildlife reflects the difficulty in persuading price conscious shoppers to think green in the global economic crisis.
And manufacturers who want to use palm oil certified by the Roundtable for Sustainable Palm Oil (RSPO) have to additionally invest in building separate storage tanks and processors, said Judith Murdoch, marketing controller for AAK UK.

Trader's Highlight

DJI-NEW YORK, May 14 (Reuters) - U.S. stocks rose on Thursday as investors returned to financial and technology shares on bets the recent rally could have more room to grow after a brief pullback.

The Dow Jones industrial average <.DJI> added 46.43 points, or 0.56 percent, to 8,331.32. The Standard & Poor's 500 Index <.SPX> gained 9.15 points, or 1.04 percent, to 893.07. The Nasdaq Composite Index <.IXIC> climbed 25.02 points, or 1.50
percent, to 1,689.21.

Data showed the number of U.S. workers filing new claims for jobless benefits rose more than expected in the latest week, pushed up by plant shutdowns related to Chrysler's bankruptcy.

NYMEX-NEW YORK, May 14 (Reuters) - U.S. crude oil futures ended higher on Thursday as U.S. and European equities rose on hopes that a global recession may have bottomed, outweighing worries arising from a further downward revision by the International Energy Agency of its 2009 oil demand forecast.

On the New York Mercantile Exchange, June crude settled up 60 cents, or 1.03 percent, at $58.62 a barrel, trading from $56.55 to $59. Tuesday's $60.08 intraday peak was the highest since $62.28 was hit on Nov. 11.

CBOT-SOYBEANS - May expired up 16 cents at $11.66. July up 19-1/2 at $11.47-1/2.

Rallied to 7-1/2 month high as big export sales of U.S. soy and dwindling supplies continue to boost soybean futures in addition to support from low soy yields in drought-stricken South America,

NOPA April soybean crushings 134.115 million bushels versus March 137.257 million and above average estimate for 132.1 million.

CBOT-SOYOIL - May expired down 0.30 cent at 38.60. July down 0.32 at 38.84.

Pressured by big soyoil stocks in NOPA's April crush report, meal/soyoil spreading and lower crude oil market.

NOPA April soyoil stocks 2.710 billion lbs versus March 2.593 billion.

FCPO-KUALA LUMPUR, May 14 (Reuters) - Malaysian palm futures fell 3.8 percent on Thursday, retreating from a nine-month top hit the previous day, as investors booked profits on fears that palm oil would outpace soyoil prices due to supply concerns.

The benchmark July contract settled down 105 ringgit at 2,684 ringgit ($757.1) per tonne. Overall volume jumped to 17,659 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, May 14 (Reuters) - Singapore shares hit a one-week
low on Thursday, leading other Southeast Asian bourses lower in a market unsure about the global recovery, and Thailand ended an eight-day winning streak after MSCI cut its investment weighting.

Singapore's index <.FTSTI> closed down 2.9 percent at 2122.11, its lowest since May 6. Thailand's SET index <.SETI> dropped 4.7 percent, erasing part of a 16.9 percent surge over the past eight days. Malaysia <.KLSE> and Indonesia <.JKSE> ended at their lowest since May 6, falling 1.1 percent and 3.6 percent respectively.

DJI Daily: Struggling

Market was struggled to survive at 8000 mark. Thus, we remains cautious to the immediate technical outlook as violation of 8000 mark may turn the immediate outlook bias to downside potential. To the upside, resistance is maintain at 8600-8700.

KLSE Daily: Losing ground

Market losing ground a little and likely to move in sideways in near term. We now looking for the resistance at 1020-1030. To the downside, support is maintain at 1000.

FKLI Daily: Technically overbought

Market ended with a black candle after the recent rally due to technically overbought. Thus, consolidation phase likely to continue in near term. As for now, we are looking for the immediate upside resistance at 1013-1016 (gap left over on 14/5/2009). To the downside, we are looking for the physiological support at 1000 followed by 998-993.5 (gap left over on 4/5/2009).

FCPO Daily: Bull took a breathe

Market reversed from its previous day gains to end at day low after cover the downside gap leftover at 2738-2736. Bull looks may take a short term break to build up more energy for a sustainable rally. As for now, we are now looking for the upside resistance at 2799. To the downside, support is pegged at 2650 followed by 2620-2600.