Trader's Comment: Palm oil futures eased further after it surrendered its earlier gains.

Palm oil futures eased further after it surrendered its earlier gains. Benchmark Aug09 hit intra day high of 2611 after it gapped up RM33 higher to open at 2602, tracking the strong closed in overnight NYMEX crude oil and CBOT soy oil. However, due to lack of follow through buying activities, prices then began to fell lower for the rest of the day until it finally settled at the intra day low of 2520. External markets were mix as Dalian palm ended off high while eCBOT soy oil inched lower. News that India may cutback on palm oil imports in the second half of this year due to their huge edible oils reserves and a possible re-imposition of import duties on vege oils, had also provided some pressure on the local CPO prices.

Breaking News-RTRS-US soy oil stocks 3.159 bln lbs in April - Census

WASHINGTON, June 4 (Reuters) - U.S. soybean oil stocks
totaled 3.159 billion lbs in April, compared to 3.101
billion lbs in March, the U.S. Census Bureau said on Thursday.
The data were released as part of the Census Bureau's
monthly Fats & Oils Production and Stocks report.

Trader's Highlight

DJI-NEW YORK, June 4 (Reuters) - U.S. stocks rose on Thursday as a brokerage's upbeat view on U.S. banks drove a run-up in financials, while soaring prices of oil and other commodities lifted natural resource companies on bets the economic slump is waning.

The Dow Jones industrial average <.DJI> gained 74.96 points, or 0.86 percent, to 8,750.24. The Standard & Poor's 500 Index <.SPX> climbed 10.70 points, or 1.15 percent, to 942.46. The Nasdaq Composite Index <.IXIC> rose 24.10 points, or 1.32 percent, to 1,850.02.

While Thursday's economic reports generally supported expectations that the economy is starting to improve, disappointing May sales reported by major retailers showed that consumers are still holding onto their wallets.

Government data showed U.S. non-farm productivity rose by 1.6 percent in the first quarter, much stronger than initially estimated.

Investors are cautious about what Friday's report on U.S. employment might reveal as they look for more definitive signs that the recession that begun in December 2007 is easing. Since hitting a 12-year low on March 9, the S&P 500 has risen nearly 40 percent.

NYMEX-NEW YORK, June 4 (Reuters) - U.S. crude futures ended more than 4 percent higher on Thursday, rallying on news that the number of U.S. workers filing new jobless benefit claims fell for the third straight week, which reinforced hopes that the recession was easing.

On the New York Mercantile Exchange, July crude settled up $2.69, or 4.07 percent, at $68.81 barrel, the highest settlement since $70.53 on Nov. 4. It traded from $65.92 to $69.60, the highest front-month price since $70.46 was reached on Nov. 5.

CBOT-SOYBEANS - July up 48 cents per bushel at $12.30. Support from higher crude oil and tight soybean stocks. Soy attempting to consolidate and rebound after the sharp decline of futures on Wednesday.

CBOT-SOYOIL - July up 1.09 cents per lb at 40.34. Firm crude oil supportive in addition to gains in soybeans.

FCPO-JAKARTA, June 4 (Reuters) - Malaysian palm oil futures ended little changed on Thursday as a rebound in crude oil prices provided support amid expectations for higher stocks, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange closed down 6 ringgit at 2,569 ringgit ($736.10) per tonne. Overall volume was 7,837 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 4 (Reuters) - Most Southeast Asian indices rose
on Thursday, tracking a late rebound in Hong Kong shares and U.S. futures.

Thailand's main index reached its highest level since October as government stimulus plans fuelled more buying of banking and building firms such as Bank of Ayudhya and Siam Cement.

Hong Kong shares <.HSI> and U.S. stock index futures rose as markets awaited rate-setting meetings at the European Central Bank and the Bank of England.

Thailand's stock index <.SETI> climbed 2 percent to its highest level since October 3, after Wednesday's 1.4 percent rise.

Malaysia <.KLSE> gained 0.8 percent, Indonesia <.JKSE> rose 1.1 percent and the Philippines <.PSI> advanced 0.9 percent. Vietnam <.VNI> extended its gains for a fourth day, adding 3 percent, to its highest level since October 2.

DJI Daily: Slow n Steady

Chart wise was remains unchanged as market extended its upside move in slow and steady manner. We continue to look for the upside resistance at 9000-9200. To the downside, support is pegged at 8200.

KLSE Daily: Up-trend remains intact

Market remains in positive outlook with downside support maintain at 1055-1050. While, to the upside, resistance is at 1072-1080.

FKLI Daily: Gaining ground

Market recouped from its early losses to end higher. Bulls look defended well at 1050 level and likely to continue its bulls run after re-charged energy. Therefore, we continue to look for the immediate upside resistance at 1075 followed by 1080-1090.

FCPO Daily: 2500 mark helped to cushion the downside momentum

Market remains under pressure following a formation of head and shoulder. However,2500 mark had helped to cushion the downside momentum. Thus, market may move sideways in near term. As for now, we are looking for the immediate upside resistance at 2600-2610 followed by 2650-2665. To the downside, immediate support is pegged at 2525-2500.