Trader's C omment: Palm oil futures recouped some of its earlier losses to end marginally lower.

Palm oil futures recouped some of its earlier losses to end marginally lower. The heavy losses in overnight CBOT soy oil saw Benchmark Aug09 to fall through out the morning session and hit intra day low at 2525. However, it started to bounce back in the second session and began to climb steadily until it hit intra day high of 2578, tracking the strong rebound of Asian time NYMEX crude oil following Goldman Sachs Group Inc. raised its crude oil price forecast for the end of 2009 to $85 a barrel from its previous target of $65 a barrel, in a research report today. At the closing bell, Aug settled at RM6 lower at 2569. External vege oil markets were rather mix as Dalian palm ended more than 1% lower while eCBOT soy oil edged higher. Daily volume improved slightly with total 13,291 contracts changed hands.

Trader's Highlight

DJI-NEW YORK, June 3 (Reuters) - U.S. stocks tumbled on Wednesday, halting a four-day winning streak, as falling oil prices hit energy shares, while less upbeat economic reports rekindled worries about recovery prospects.

The Dow Jones industrial average <.DJI> dropped 65.63 points, or 0.75 percent, to 8,675.24. The Standard & Poor's 500 Index <.SPX> shed 12.98 points, or 1.37 percent, to 931.76. The Nasdaq Composite Index <.IXIC> declined 10.88 points, or 0.59 percent, to 1,825.92.

Federal Reserve Chairman Ben Bernanke said in an appearance before the House Budget Committee he expected to see "some positive growth later this year" but not robust growth.

NYMEX-NEW YORK, June 3 (Reuters) - U.S. crude futures fell more than 3 percent on Wednesday, battered by government data showing a large, surprise increase in crude inventories and as the dollar rebounded strongly.

On the New York Mercantile Exchange, July crude settled down $2.43, or
3.54 percent, at $66.12 a barrel, trading from $64.95 to $68.95.

July crude hit an intraday high of $69.05 on Tuesday, the highest front-month price since $70.46 was reached on Nov. 5.

CBOT-SOYBEANS - July down 27 cents at $11.82 per bushel. Firm dollar, lower crude oil and drop in stock market weighed on soybean futures with profit-taking a key feature after the rally early in the week to eight-month highs.

CBOT-SOYOIL - July down 1.25 cents at 39.25 cents per lb. Lower crude oil and profit-taking weighing on soyoil futures.

FCPO-JAKARTA, June 3 (Reuters) - Malaysian palm oil futures dropped for a second day on Wednesday as investors, spooked by worries over higher production, continued to lock in profits from the recent crude oil-driven rally, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange settled down 23 ringgit to 2,575 ringgit ($739.52) per tonne. Overall volume was 9,830 lots of 25 tonnes each, less than the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, June 3 (Reuters) - Banking and building firms powered Thai shares to a 3-week high on Wednesday, while an interest rate cut triggered buying of financials and index heavyweights in Indonesia.

Singapore's index <.FTSTI> ended up 0.3 percent after a 0.2 percent loss on Tuesday, with United Overseas Bank and DBS Group , Southeast Asia's biggest bank, each gaining more than two percent.

Among decliners in the region, Malaysia's index <.KLSE> and the Philippine index <.PSI> each dropped 0.8 percent after rising in the last three sessions. Malaysia's Tenaga Nasional fell 1.95 percent, while Metrobank in Manila lost 5.4 percent.

DJI Daily: in Slow motion

Nothing much changes on the immediate technical landscape as market was moving in slow manner. We continue to look for the upside resistance at 9000-9200. To the downside, support is looking at 8200.

KLSE Daily: due for Consolidation

Market looks is entering to consolidation phase after the recent rally. To the upside, resistance is at 1072-1080. To the downside, support is adjusted to 1050-1035.

FKLI Daily: in Consolidation phase

Bulls took a breathe following market violated the immediate support at 1057. Nevertheless, the overall technical landscape remains in positive mode. As for now, we are looking for the immediate upside resistance at 1075 followed by 1080-1090. While, immediate downside support is pegged at 1040-1030.

FCPO Daily: Head n Shoulder formed

Head and Shoulder pattern had formed following another day of weak closing. Thus, market is likely to move sideways to lower in near term. As for now, we are looking for the immediate upside resistance at 2651. To the downside, support is pegged at 2530-2500 followed by 2490-2480.