Trader's Comment: Palm oil futures ended mix to easier after trapped in narrow range trading

Palm oil futures ended mix to easier after trapped in narrow range trading through out most of the afternoon session. Benchmark Aug09 initially opened RM30 lower at 2471 following the losses in overnight CBOT soy oil, but immediately bounced back again and hit intra day high at 2519 in the morning session. Some profit taking activities emerged in the early second session saw prices eased off slightly to 2484 and then began to hover between 2516-2484 level until it finally settled RM16 lower at 2485. The losses in Dalian palm had given some minor impact today as Asian time NYMEX crude oil continued to rally strongly after its overnight strong gains, while eCBOT soy oil also rebounded slightly. Meanwhile, potential buying interest for the upcoming Ramadhan festive season which fall in the 3rd week of Aug may have also lend some support to the local CPO market.

Breaking News-RTRS-Rains ease drought in China's largest soy area

BEIJING, June 10 (Reuters) - Rains this week have eased a drought in China's largest soy growing area of Heilongjiang province, agricultural officials said on Wednesday.
As farmers began replanting corn, soy seedlings were emerging and were largely unaffected by the drought, they said.

Trader's Highlight

DJI-NEW YORK, June 10 (Reuters) - U.S. stocks fell on Wednesday on worries that rising interest rates could put a damper on consumer and business spending, but stocks pared losses late in the session to finish off the day's lows.

The Dow Jones industrial average <.DJI> fell 24.04 points, or 0.27 percent, to 8,739.02. The Standard & Poor's 500 Index <.SPX> slid 3.28 points, or 0.35 percent, to 939.15. The Nasdaq Composite Index <.IXIC> dropped 7.05 points, or 0.38 percent,
to 1,853.08.

In its latest Beige Book survey of the economy, the Federal Reserve said U.S. economic conditions were weak or worsened through May, but some areas of the country saw signs the contraction was moderating.

NYMEX-NEW YORK, June 10 (Reuters) - U.S. crude oil futures settled at the highest level in seven months on Wednesday, gaining sharply on government data showing a
larger-than-expected drawdown in crude oil inventories last week.

Prices rose for a second day in a row, but pared gains after surging to the intraday high of $71.79 as the dollar rebounded against the euro and Wall Street dipped on worries surging oil prices could weaken the economic recovery.

On the New York Mercantile Exchange, July crude settled up $1.32, or 1.89 percent, at $71.33 a barrel, the highest close since Oct. 20's $74.25. It traded from $70.43 to $71.79, the highest intraday price for a front-month contract since Oct. 22's $71.80.

CBOT-SOYBEANS - July up 2-1/2 cents at $12.46 a bushel.

Bullish U.S. soy stocks data in USDA's June supply/demand report supports market but gains slowed by downturn in stock market and firming dollar.

USDA forecast U.S. old-crop soy ending stocks at 110 million bushels, below average estimate for 114 million, and new-crop soy ending stocks 210 million, slightly below estimates for 211 million.

CBOT-SOYOIL - July down 0.84 cent at 38.61 cents a lb. USDA raised 2009/10 soyoil end stocks estimate by 265 million lbs.

FCPO-JAKARTA, June 10 (Reuters) - Malaysian palm oil futures rose 1.5 percent on Wednesday, as a rally on crude oil, soybean and equity markets outweighed bearish data on palm oil exports and stocks, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange rose 36 ringgit to 2,501 ringgit ($716.0) per tonne, after going as low as 2,451. Overall volume was 18,440 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 10 (Reuters) - Singapore led other Southeast
Asian stock markets higher on Wednesday, with Singapore's CapitaLand, Malaysia's Malayan Banking, Indonesia's Indocement and Thailand's PTT among the region's outperformers.

An auction of 10-year U.S. Treasury notes and the latest data from the U.S. Federal Reserve would set the direction for U.S. and global equities, Warut Siwasariyanon, head of research at Finansa Securities said.

Singapore's index <.FTSTI> rose 1.8 percent, with CapitaLand , Southeast Asia's biggest developer, surging 6 percent and palm oil planter Wilmar International adding 3.1 percent.

Malaysia's index <.KLSE> rose 1.04 percent o its highest level since September 4, with Malayan Banking Bhd , the country's biggest lender, adding 3.7 percent.

KLSE Daily: Cheers

Market continue to draw a bullish picture after violated the recent high. Thus, we are now looking for the upside resistance at 1082-1090. While, downside support is at 1070 followed by 1066-1063 (gap left over on 5/6/2009).

FKLI Daily: Another day of bull rallied

Another day of bull rallied. A long white candle printed is proved to us that bulls remains strong and steady. As mention earlier, a breakout from the recent high at 1082 is likely to extend its upward move in near term. As for now, we adjusted our upside resistance at 1090-1100. To the downside, support is pegged at 1075-1070 followed by 1060.

FCPO Daily: Directionless

2400 mark is still cushioning well following prices reversed from its losing streak to end at day high. However, this was not enough to change the immediate negative technical landscape. Thus, we maintain our view sideways to lower in near term. Currently, we maintain the immediate upside resistance at 2501-2525. To the downside, immediate support is pegged at 2420-2400 followed by 2350.