Trader's Comment: Palm oil futures extended its rally again to end broadly higher on good export figures and bullish external markets.

Palm oil futures extended its rally again to end broadly higher on good export figures and bullish external markets. Benchmark Aug09 initially fell to intra day low of 2594 after it gapped up RM49 higher to open at 2609. However, it failed to cover yesterday’s leftover gap as it immediately bounced back to above 2600 level and climbed steadily through out most of the sessions. The emerged of late profit-taking activities had led Benchmark Aug09 slid slightly to 2614 before it finally settled RM65 higher 2625. The end May export data released by both private cargo surveyors had managed to provide support to the prices as ITS & SGS reported an increase of 1.7% and 5.1% respectively. Furthermore, the bullish global commodities market and the spill over from strong regional equity market also enhanced the buying sentiment in the local CPO market. Dalian palm ended more than 5% higher while eCBOT soy oil and NYMEX crude oil extended their overnight gains and rallied strongly in Asian time trading.

Trader's Highlight

DJI-NEW YORK, May 31 (Reuters) - Wall Street faces a historic shake-up next week as General Motors, a pillar of American industry, heads into bankruptcy, but the market could advance further if economic data signals the worst of the recession has passed.

All eyes will be on Federal Reserve Chairman Ben Bernanke when he addresses lawmakers in Congress on Wednesday as investors will be looking for signals of the Fed's thinking on the recent surge in the supply of U.S. government debt.

Next Friday's data is expected to show unemployment rose to 9.2 percent from 8.9 percent the month before, according to Reuters data. Analysts say unemployment is expected to increase even as the economy starts to turn around as companies remain reluctant to hire.

NYMEX-NEW YORK, May 29 (Reuters) - U.S. crude oil futures ended higher for the sixth straight session on Friday, lifted by economic data from the U.S., Japan and India that reinforced perception the global recession was abating, and as the dollar
weakened to a five-month low.

On the New York Mercantile Exchange, July crude settled up $1.23, or 1.89 percent, at $66.31 a barrel, the highest settlement since Nov. 4's $70.53. It traded from $64.68 to $66.47, the highest intraday price since $70.46 on Nov. 5. From a week ago, prices are up $4.64, or 7.52 percent.

CBOT-SOYBEANS - July up 5 cents at $11.84. Fund buying, tight soybean stocks, active exports, lower dollar and higher crude oil combined to lift soybean futures.

CBOT-SOYOIL - July up 1.24 cents at 39.05. Following soybeans with extra lift from higher crude oil.

FCPO-SINGAPORE, May 29 (Reuters) - Malaysian palm oil futures climbed nearly 2 percent on Friday, lifted by strengthening crude oil prices although expectations of a rebound in production this month capped gains.

The benchmark August contract on Bursa Malaysia's Derivatives Exchange closed up 47 ringgit, or 1.9 percent, to 2,552 ringgit ($731) per tonne. Overall volume climbed to 16,098 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, May 29 (Reuters) - Surging oil prices pushed most
Southeast Asian stock markets higher on Friday, with energy and commodities firms such as Malaysia's Sime Darby and Singapore's Wilmar International leading the way.

Singapore's Straits Times index <.FTSTI> rose 1.57 percent to its highest close since October 2008. Malaysian shares <.KLSE> climbed 0.28 percent, snapping a three-day losing streak, while Thai stocks <.SETI> rose 0.9 percent to a near eight-month high.

Weekly DJI: Not much improved

Market looks not much improving. Resistance and support maintain at 8600-8800 and 8000-7700 level respectively.

Weekly KLSE: More upside room

No sign of turning as bulls remained strong. Currently, we continue to look for the upside resistance at 1070-1080. To the downside, support is stood at 1000.

Weekly FKLI: Topless?

Market looks topless as bulls still remains its strength to maintain the upward momentum. As for now, we continue to look for the upside resistance at 1080-1090. While, downside support is pegged at 1000.

Weekly FCPO: Finding Support

Market rebounded after the recent sharp fall to the low of 2350. Bulls look may continue to find for support as the current posture was not good enough to change the negative technical outlook. As for now, we are looking for the upside resistance at 2648-2665 followed by 2799. To the downside, support is pegged at 2300-2295 followed by 2060-2020.

Trader's Comment: Palm oil futures ended broadly higher on pre-weekend covering.

Palm oil futures ended broadly higher on pre-weekend covering. Benchmark Aug09 initially slid to intra day low of 2492 after opened RM8 higher at 2513 but was well supported as it immediately bounced back and climbed steadily through out the morning session. The sudden emerged of short covering activities when second session resumed had led prices to surge higher and hit intra day high at 2585. It then eased off slightly and traded between 2575-2538 level before it finally settled RM55 higher at 2560. The continuous strong rally in Asian time NYMEX crude oil which traded more than $1 higher after its overnight’s strong closed, coupled with eCBOT soy oil which edged higher had also helped to fuel the bullish sentiment in the local CPO market.