Trader's Comment: Palm oil futures ended lower on weak external markets.

Palm oil futures ended lower on weak external markets. Benchmark Aug09 immediately slid to morning low of 2477 after opened at intra day high at 2501. It was well supported initially as it hovers between 2484-2499 level through out the morning session. However, second session resumed with easier tone tracking external market, it was under selling pressure through out the second session. It then slid to intra day low of 2445 in late trading before it finally settled RM20 lower at 2465. The weakness in external markets had provided some selling pressure to the local CPO market today. Asian time NYMEX crude oil traded more than $1 lower at below $72 level while eCBOT soy oil and Dalian palm also edged lower.

Breaking News-RTRS-UPDATE 1-China May soy imports slip to 3.52 mln tonnes

BEIJING, June 11 (Reuters) - China's soybean imports slipped to 3.52 million tonnes in May, from 3.71 million tonnes in April, down 5.1 percent on the month but still 1.2 percent ahead of May 2008, official Customs figures showed on Thursday.
China's soy imports in the first five months of the year rose 27 percent from a year earlier to 17.38 million tonnes, according to the General Administration of Customs.

Breaking News-RTRS-ANALYSIS-US soy markets poised for volatile summer

CHICAGO, June 10 (Reuters) - U.S. soy markets are poised for another season of volatility, with shrinking supplies and the record new crop possibly leading to price swings as extreme as they were last summer.
The U.S. Department of Agriculture on Wednesday confirmed private forecasts for domestic soybean stocks to shrink by August to their lowest level in 32 years.
But the agency also forecast a record large 2009 U.S. soy crop -- setting the stage for some wild price swings given the sharp contrast between the two.

Trader's Highlight

DJI-NEW YORK, June 11 (Reuters) - U.S. stocks racked up gains across a wide array of sectors on Thursday, aided by rising commodity prices and improving labor market conditions, along with a sharp drop in interest rates.

But stocks faded late in the session as analysts said the recent pattern of light volume has made it difficult for the S&P 500 to close above the psychologically important 950 level.

The Dow Jones industrial average <.DJI> gained 31.90 points, or 0.37 percent, to 8,770.92. The Standard & Poor's 500 Index <.SPX> rose 5.74 points, or 0.61 percent, to 944.89. The Nasdaq Composite Index <.IXIC> added 9.29 points, or 0.50 percent, to 1,862.37.

NYMEX-NEW YORK, June 11 (Reuters) - U.S. crude oil futures rallied for a third straight day and ended above $72 a barrel on Thursday, as the dollar dropped and economic recovery hopes rose on reassuring jobless benefit claims and retail sales
data.

Crude futures were in rally mode from the early going, after the Paris-based IEA earlier said 2009 oil demand will contract less than previously expected, easing worries about low consumption.

On the New York Mercantile Exchange, July crude settled up $1.35, or 1.89 percent, at $72.68 a barrel, the highest close since Oct. 20's $74.25. It traded from $71.32 to $73.23, the highest intraday since Oct. 21's $75.69.

CBOT-SOYBEANS - July up 21 cents at $12.67 a bushel; November up 10-1/2 at $10.89-3/4.

Rallies to nine-month high on tight soy stocks, weak dollar and higher crude oil. Old-crop July/new-crop November spread stays volatile, with July nearing $2 premium.

CBOT-SOYOIL - July down 0.41 cent at 38.20 cents a pound.

Weakest leg of complex amid large U.S. soyoil stocks, with strong soymeal demand fueling meal/oil spreading.

FCPO-JAKARTA, June 11 (Reuters) - Malaysian palm oil futures closed lower on Thursday after crude oil, which sparked a midday rebound, retreated from its high in Asian hours, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange fell 16 ringgit, or 0.6 percent, to 2,485 ringgit ($708.99) per tonne, after going as high as 2,519 ringgit. Overall volume was 16,718 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 11 (Reuters) - Major Southeast Asian stock markets came off their early highs on Thursday, with losses in Raffles Education and DBS Group ending a 2-day rise in Singapore while Telkom and Astra International fell in Indonesia.

Singapore's index <.FTSTI> fell 0.4 percent after a 2.5 percent gain over the past two days.Thai stocks <.JKSE> gained 0.4 percent, adding to a 4.1
percent rise over the past two days. Malaysia <.KLSE> added 0.6
percent, after a 1.04 percent rise on Wednesday.

DJI Daily: Slowly inching up

Market is inching up in a very slow manner. Thus, we maintain our upside resistance at 9000-9200. Downside support adjusted to 8600 followed by 8200.

KLSE Daily: Likely to challenge 1090-1100

Market marked another new high and looks likely to challenge 1090-1100 level in near term. While, downside support is at 1075-1070.

FKLI Daily: Believe or not

No matter you believe or not, market looks likely to continue its northern journey with upside target at 1091.5-1120. To the downside, support is pegged at 1075-1070.

FCPO Daily: Uncertain

Market direction remains uncertain as prices stuck in rangy mode. Currently, we maintain the immediate upside resistance at 2520-2525 followed by 2565-2585. To the downside, immediate support is pegged at 2441 followed by 2420-2400.