Trader's Comment: Palm oil futures rebounded strongly from yesterday’s losses to end sharply higher

Palm oil futures rebounded strongly from yesterday’s losses to end sharply higher after a choppy trading day. Benchmark Aug09 immediately surged to the morning high of 2487 after opened almost unchanged at 2425. It was well supported closed at 2481 for morning break. Prices then began to hover between 2470-2500 level through out the second session before it finally surged further to 2507 and settled RM75 higher at 2505. External markets were mix today as eCBOT soy oil edged higher while Dalian palm ended to inch lower during Asian time trading. Overall market was encountering some technical rebound after yesterday’s aggressive selling activities and may want to consolidate further in near future.

Breaking News-RTRS-INTERVIEW-Malaysia May palm oil stocks may hit 23-month low

RTRS-MALAYSIA MAY PALM STOCKS MAY GO LOWER TO 1.26-1.27 MLN TONNES -INDUSTRY ANALYST

RTRS-MALAYSIA '09 PALM OIL OUTPUT SEEN FLAT AT AROUND 17.8 MILLION TONNES-INDUSTRY ANALYST

RTRS-MALAYSIAN '09 PALM OIL EXPORTS SEEN FLAT AT AROUND 16 MILLION TONNES-INDUSTRY ANALYST

Breaking News-RTRS-UPDATE 1-China May soy imports seen at record 4.29 mln T-MofCom

BEIJING, May 25 (Reuters) - China's Commerce Ministry expects the country's soybean imports to hit a record 4.29 million tonnes in May and to remain high in June, with 4.11 million tonnes expected to arrive.
The preliminary estimates from the ministry's latest twice-monthly report sharply revised its earlier forecasts of 3.66 million tonnes in May and 2.8 million tonnes in June. The preliminary figures were in line with traders' projections.
China, the world's largest soy importer, imported 3.71 million tonnes in April.

Breaking News-RTRS-INTERVIEW-Indonesia palm exports to India seen up 25 pct

JAKARTA, May 26 (Reuters) - Indonesian exports of palm oil to India are forecast to jump 25 percent this year, driven by higher consumption in the world's second-biggest edible oils buyer and tight supply of rival soybean oil, an industry official said. Indonesia,

Trader's Highlight

DJI-NEW YORK, May 26 (Reuters) - U.S. stocks climbed more than 2 percent on Tuesday as data showing the biggest monthly jump in consumer confidence in six years lifted hopes of an economic rebound, and a brokerage upgrade of Apple Inc drove sharp gains
on the Nasdaq.

The Dow Jones industrial average <.DJI> rose 196.17 points, or 2.37 percent, to finish at 8,473.49. The Standard & Poor's 500 Index <.SPX> was up 23.33 points, or 2.63 percent, at 910.33. The Nasdaq Composite Index <.IXIC> was up 58.42 points,
or 3.45 percent, at 1,750.43.

NYMEX-NEW YORK, May 26 (Reuters) - U.S. crude oil futures ended more than 1 percent higher on Tuesday after hitting a fresh 2009 intraday high, as a report of higher consumer confidence bolstered hopes of improved oil demand.

On the New York Mercantile Exchange, July crude settled up 78 cents, or 1.26 percent, at $62.45, the highest close since $65.30 on Nov. 5. It traded from $59.53 to $62.50, the highest intraday price since $65.56 on Nov. 10.

CBOT-SOYBEANS - July up 19-1/2 cents per bushel at $11.85-1/2. Tight stocks of soy and equities rally boosted soybean futures.

Trade expecting USDA late on Tuesday to show soy plantings at 45 to 50 percent complete, down from the five-year average of roughly 67 percent.

CBOT-SOYOIL - July down 0.35 cent per lb at 37.75. Profit-taking and soymeal/soyoil spreading weighed on soyoil futures.

FCPO-KUALA LUMPUR, May 26 (Reuters) - Malaysian palm futures dropped 0.6 percent on Tuesday but bounced off 5-week lows hit earlier in the session after talk of stronger export demand for Southeast Asian palm oil lifted sentiment.

The benchmark August contract on Bursa Malaysia's Derivatives Exchange settled down 15 ringgit at 2,430 ringgit ($696.7) after going as low as 2,350 ringgit, a level unseen since April 21. Overall volume more than doubled to 23,485 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, May 26 (Reuters) - Most Southeast Asian stocks fell
on Tuesday as tensions over North Korea's nuclear and missile test offset recent optimism about a recovery in the global economy.

Markets in the region dipped following a report that North Korea would launch more short-range missiles, further raising tensions after its nuclear test on Monday.

The MSCI index of Asia-Pacific stocks outside Japan <.MIAPJ0000PUS> was down 1.05 percent as of 0945 GMT but analysts said they believed the market impact will be short-lived in a region growing accustomed to Pyongyang's actions.

Singapore's index <.FTSTI> slid 1.26 percent, with Southeast Asia's top lender DBS Group falling 1.7 percent, casino operator Genting International down 2.3 percent and shipbuilder COSCO Corp lost 3.25 percent.

Indonesia <.JKSE> shed 1.77 percent after a 0.3 percent rise a day earlier. Thai shares <.SETI> erased early gains to close down 1.4 percent, extending falls for a second day.

Malaysian stocks <.KLSE> eased 0.14 percent ahead of a decision by the country's central bank to leave interest rates unchanged at 2 percent, as expected.