Trader's Comment: Palm oil futures fell sharply lower on late intra day liquidation.

Palm oil futures fell sharply lower to new recent low level on late intra day liquidation. Benchmark Aug09 initially managed to bounce back from its morning low of 2478 and hit intra day high at 2531 in the afternoon session on the back of some positive export figures released by both private cargo surveyors. ITS and SGS had reported an increase of 0.6% and 4.7% respectively on the 1-25 May export data. However, lack of follow through buying and some intra day liquidation in late trading led prices to fall again. The weak Dalian palm did not provide any buying support to the local CPO market while, eCBOT were closed during Asian time trading due to US public holiday. Benchmark Aug09 finally settled RM76 lower at the day low of 2445 with total daily volume stood at 13,230 contracts changed hands.

CPO Tender Summary and Delivery Location as at May 2009

Breaking News-RTRS-China soy imports stay thin on high CBOT prices-survey

BEIJING, May 22 (Reuters) - China's demand for imported soybeans remained low this week after the Chicago Board of Trade (CBOT) soy prices surged to a fresh 8-month high, making imports expensive, according to a survey of an official think-tank.
In addition, a rise in freight rate had turned imported soybeans expensive or more than 4,000 yuan ($586.2) per tonne, higher than the domestic crop for the first time this year, the China National Grain and Oils Information Centre (CNGOIC) said in a report.

Trader's Highlight

DJI-NEW YORK, May 22 (Reuters) - U.S. stocks fell for a fourth day on Friday on persistent worries about the U.S. budget deficit, with U.S. Treasuries and the dollar losing ground.

The Dow Jones industrial average <.DJI> dropped 14.81 points, or 0.18 percent, to 8,277.32. The Standard & Poor's 500 Index <.SPX> fell 1.33 points, or 0.15 percent, to 887.00. The Nasdaq Composite Index <.IXIC> lost 3.24 points, or 0.19 percent, to 1,692.01.

NYMEX-NEW YORK, May 22 (Reuters) - U.S. crude futures ended higher on Friday, spurred by pre-holiday short-covering, after earlier being listless as traders weighed weak fundamentals against the falling dollar.

News that bad weather had forced the Louisiana Offshore Oil Port to cancel offloading of tankers for a second day was supportive.

On the New York Mercantile Exchange, July crude settled up 62 cents, or 1.02 percent, at $61.67 a barrel, trading from $60.50 to $61.98.

CBOT-SOYBEANS - July down 9 cents at $11.66. November up 8 at $10.31-1/2.

Profit-taking of the July/November bull spread pressured July and boosted November. Market had rallied to near fresh eight-month high on shrinking stocks of soy, big export sales of U.S. soybean stocks and low yields in South America. China continues to buy soybeans.

CBOT-SOYOIL - July up 0.12 cent at 38.10. Weak dollar and higher crude oil contributing support.

FCPO-JAKARTA, May 22 (Reuters) - Malaysian palm futures rose nearly 1 percent on Friday, rebounding from a three-week low a day earlier, but fears over supplies in the world's number-two producer and a strong ringgit capped gains, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange rose 23 ringgit, or 0.9 percent, to 2,522 ringgit ($723.05) per tonne, after posting its biggest day-fall in more than three weeks on Thursday.

REGIONAL EQUITIES-BANGKOK, May 22 (Reuters) - Southeast Asian stock markets mostly recovered from early falls on Friday, with energy-related shares among the advancers, including Singapore's Golden Agri, Malaysia's Tenaga, Thai PTTEP and Indonesia's Adaro Energy.

Singapore's index <.FTSTI> climbed 1.6 percent, recouping a loss of almost 1 percent in morning trade, Malaysia <.KLSE> gained 0.9 percent after earlier slipping 0.5 percent, and Thai stocks <.SETI> rose almost 1 percent after dropping 1 percent.

Indonesia <.JKSE> eased 0.2 percent on resuming trade after closing on Thursday for a market holiday.

DJI Weekly: Sideways

Nothing much changes on the immediate weekly outlook as market remains in its consolidation mode. Resistance maintains at 8600 followed by 8800-9000. Downside support is pegged at 8000-7800

KLSE Weekly: More upside room

Weekly chart looks more convincing for more upside room as a good closing for the week with fresh high. As for now, we are looking for the upside resistance at 1070-1080. To the downside, support is stood at 1000.

FKLI Weekly: Bulls likely to march higher

We had evident the power of bull for the entire week. Bull looks likely to march higher in near term. To the upside, resistance is at 1080-1090. Downside support is pegged at 1000-995.

FCPO Weekly: Sideways to Lower

Market retreated since after hitting the recent high at 2799. The overall weekly technical outlook losing ground further following 2600 mark was failed to defend. Thus, market looks may continue to move sideways to lower in near term. Violation of 2400-2390 may provide more room to downside potential. To the upside, resistance is maintain at 2799.