Trader's Comment: Palm oil futures ended easier after a tight range movement on thin volume.

Palm oil futures ended easier after a tight range movement on thin volume. Benchmark Aug had been hovering between 2606-2574 level through out most of the sessions after it opened almost unchanged at 2601. Some late intra day liquidation saw prices slid further to 2565 but was pushed up into earlier range again and settled RM23 lower at 2575. Market were somehow uncertain as players cautiously looking for any fresh leads especially on any further clues of end stock level, while waiting for the MPOB supply & demand data which will be release by next Wednesday. External market showed some weakness today as both eCBOT soy oil and Dalian palm edged lower. Total daily volume stood at 9830 contracts changed hands.

Breaking News-RTRS-U.S. 2009/10 soy crop to rise sharply-Oil World

HAMBURG, June 2 (Reuters) - The U.S. is likely to harvest 88.5 million tonnes or 3.25 billion bushels of soybeans in 2009/2010 (Sept/Aug), up from 80.54 million in 2008/09 as farmers expand plantings, analysts Oil World said on Tuesday.

Breaking News-RTRS-UPDATE 1-China seen selling small amount of soy reserves

BEIJING, June 2 (Reuters) - China's state grains agency Sinograin is likely to release a small amount of its imported soybean reserves under a rotation programme to profit from rising soybean prices, dealers said on Tuesday.
Dealers were not clear on the amount but said some port warehouses holding reserves of imported soybeans planned to release a small volume because the cost of imported soybeans was expected to pick up this month after a price rise on the Chicago Board of Trade

Trader's Highlight

DJI-NEW YORK, June 2 (Reuters) - U.S. stocks rose for a fourth straight day on Tuesday as an upbeat report on home sales bolstered hopes for an economic recovery as well as shares in construction companies.

But a sell-off in financials on worries about the dilutive impact of recent stock offerings limited a broader advance. An index of pending sales of previously owned U.S. homes shot up 6.7 percent in April, the biggest monthly gain in 7-1/2 years, according to the National Association of Realtors.

The Dow Jones industrial average <.DJI> added 19.43 points, or 0.22 percent, to 8,740.87. The Standard & Poor's 500 Index <.SPX> gained 1.87 points, or 0.20 percent, to 944.74. The Nasdaq Composite Index <.IXIC> rose 8.12 points, or 0.44 percent, to 1,836.80.

NYMEX-NEW YORK, June 2 (Reuters) - U.S. crude oil futures fell further in post-settlement trading on Tuesday after the American Petroleum Institute's inventory data showed that domestic crude stocks fell less than expected last week.

On the New York Mercantile Exchange at 5:05 p.m. EDT (2105 GMT), July crude was down 35 cents, or 0.51 percent, at $68.23. It earlier settled down 3 cents, or 0.04 percent, at $68.55, trading from $67.50 to $69.05, the highest intraday since prices hit $70.46 on Nov. 5.

CBOT-SOYBEANS - July down 9-1/2 cents at $12.09. Profit-taking after the surge on Monday to new eight-month high. USDA pegged U.S. soy seedings near low end of trade estimates but there is plenty of time to sow the 2009 crop.

CBOT-SOYOIL - July up 0.05 cent at 40.50 cents per lb. Turned firm following late upturn in crude oil and on light fund buying.

FCPO-JAKARTA, June 2 (Reuters) - Malaysian palm oil futures dropped 1 percent on Tuesday, easing from a two-week closing high, amid profit-taking as a retreat in crude oil dented market sentiment, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange settled down 27 ringgit to 2,598 ringgit ($745.05) per tonne, after going as high as 2,651 ringgit. Overall volume was 9,386 lots of 25 tonnes each, less than the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, June 2 (Reuters) - Shares in Singapore and Thailand
fell on Tuesday, snapping a 2-day rally as investors took profits from soaring commodity stocks and other index heavyweights late in the trading session.

Stock markets elsewhere in Southeast Asia ended mixed as demand for shares faded along with easing oil prices, analysts said.

Singapore's Straits Times Index <.FTSTI> edged down 0.2 percent after surging to a fresh 8-month high in early trade. Developer CapitaLand slid 0.5 percent after a 5.5 percent rise on Monday.

Palm plantation firm Wilmar International fell 3.6 percent on easing Malaysian palm oil futures and a retreating crude oil price.

Malaysia's index <.KLSE> eked out a slim 0.2 percent gain to near a 9-month high. Maybank rose 3.8 percent, building on a 5 percent gain on Monday, while Public Bank
advanced 0.6 percent.

DJI Daily: inching up slowly

Market crawled up slowly after escape from its range bound territory. We continue to look for the upside resistance at 9000-9200. To the downside, support is looking at 8200.

KLSE Daily: still strong

we continue to look for the upside resistance at 1072-1080. To the downside, support is adjusted to 1050.

FKLI Daily: remains Bullish

Bulls retreated after hit another fresh high. However, overall daily technical landscape remains bullish. We continue to look for the immediate upside resistance at 1080-1090. While, immediate downside support is pegged at 1057 followed by 1040-1030.

FCPO Daily: Potential of head n shoulder formation

Market close in negative territory after failed to defend at 2600 mark. This had chart in a potential of head and shoulder formation if market continue to lose ground. As for now, we are looking for the immediate upside resistance at 2651-2665 followed by . To the downside, support is pegged at 2586-2585 (gap left over since 1/6/2009) followed by 2530-2500.