Trader's Comment: Palm oil futures ended mix to easier after bargain hunting and pre-weekend covering limit the losses.

Palm oil futures ended mix to easier after bargain hunting and pre-weekend covering limit the losses. Trading was rather quiet in the morning session as Benchmark Sep09 hovered between 2318-2290 after opened RM11 higher at 2310. However, it became very choppy in the afternoon session as prices broke below the recent low of 2284 and hit intra day low at 2274 and tested couple of times. Nevertheless, the emerged of bargain hunters in these oversold market coupled with pre-weekend short covering activities had defended Benchmark Sep09 from dropping further. Prices kept on bounced back from intra day low until it finally ended RM14 lower at 2285. Dalian palm ended with 118 pt losses, the gains in Asian time NYMEX crude oil & eCBOT soy oil had also manage to lend some support to the CPO market. Market talk that 1-20 June export data somewhere around 790k tonnes.

Breaking News-RTRS-UPDATE 1-China buys 100,000 T soyoil as imports climb

SINGAPORE, June 18 (Reuters) - China bought around 100,000 tonnes of soybean oil from Argentina this week, roughly half of what it imports in a month, traders said on Thursday.
The deals were signed between $860 and $880 a tonne, including cost and freight, for cargoes which are scheduled to be shipped in August and September. "The prices were attractive and buyers made use of this opportunity," said one Singapore-based trader. "Some buyers are also booking in advance as they are concerned that there might be a squeeze in supplies in August and September before the U.S. crop comes into the market."

Trader's Highlight

DJI-NEW YORK, June 18 (Reuters) - The Dow and S&P 500 gained on Thursday, breaking a three-day losing streak, as data on the job market and regional manufacturing revived hopes that the recession-hit economy is stabilizing.

The Dow Jones industrial average <.DJI> rose 58.42 points, or 0.69 percent, to 8,555.60. The Standard & Poor's 500 Index <.SPX> gained 7.66 points, or 0.84 percent, to 918.37. The Nasdaq Composite Index <.IXIC> was off just 0.34 of a point,
or 0.02 percent, at 1,807.72.

NYMEX-NEW YORK, June 18 (Reuters) - U.S. crude oil futures ended higher on Thursday, as reassuring economic data on jobless benefit claims and regional manufacturing and a buoyant Wall Street combined to keep prices above $71 a barrel.

News that Royal Dutch Shell had halted some oil production in Nigeria following an attack by militants on its pipelines in Bayelsa state in the Niger Delta was also supportive, analysts said.

On the New York Mercantile Exchange, July crude settled up 34 cents, or 0.48 percent, at $71.37 a barrel, trading from $70.22 to $71.75. The contract expires on Monday.

CBOT-SOYBEANS - July up 7-1/2 cents at $12.13-3/4 a bushel.
Choppy market fluctuated between back and forth early in session. Soybeans receiving support from stronger-than-expected export sales and concerns about tight stocks.

CBOT-SOYOIL - July down 0.15 cent at 36.95 cents a lb. Soymeal/soyoil spreading weighs on soyoil prices.

FCPO-KUALA LUMPUR, June 18 (Reuters) - Malaysian palm futures tumbled as much as 3.8 percent to hit a 10-week low on Thursday as the prospect of slower Indian demand fuelled speculative selling.

The benchmark September contract on Bursa Malaysia's Derivatives Exchange dropped as much 91 ringgit to 2,284 ringgit ($646.8), a level unseen since April 10, before settling at 2,299 ringgit. Overall volume surged to 18,192 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 18 (Reuters) - Major Southeast Asian stock markets tumbled again on Thursday, with Jakarta sliding more than 3 percent and Singapore declining for a sixth day, weighed down

Malaysia <.KLSE> fell 1.5 percent after a 1.86 percent loss over the previous two days, Thailand <.SETI> and Indonesia <.JKSE> dropped for a fourth day, down 2.7 percent and 3.7 percent respectively, while Manila <.PSI> fell for a third day,
easing 0.3 percent.

by losses in heavyweight banking shares.
from the usual 10,000 lots.

DJI Daily: Still in sideways

Market remains in sideways move. Thus, we continue to look for the immediate downside support at 8200-8000.While, immediate resistance is stood at 8600-8650

KLSE Daily: Immediate outlook turns bearish

Immediate technical landscape turns bearish as 1055 level was violated. Currently, we are looking for the immediate support at 1050-1047 followed by 1035. While, upside resistance is stood at 1075.

FKLI Daily: Sell on strength

A long black candle printed tested the support at 1052.5 had again shaken the players confident. We are now looking for the immediate support at 1050, violation of it may provide more downside potential with next support is pegged at 1035-1030. To the upside, resistance is at 1075.

FCPO Daily: More downside potential

A significant breakout from the 2350 level had dampened further the immediate technical landscape. As mention earlier, more downside potential will be seen after the violation of 2350 physiological support. As for now, we are looking for the downside support at 2240-2200 followed by 2150-2120. To the upside, resistance is at 2400-2420.

Trader's Comment: Palm oil futures tumbled sharply lower to break below 2300 level.

Palm oil futures tumbled sharply lower to break below 2300 level. Initially, trading were rather nervous with weaker tone while prices approaching the underline support level of 2350, it hovered between 2355-2370 level through out most of the sessions in rather cautious and thin volume. However, the race looks like over when 2350 support level were broken below. Technical selling and stop loss selling were evident as Benchmark Sep09 immediately slid further and easily broke below the 2300 psychological support level until it hit intra day low of 2284 before it finally settled RM76 lower at 2299. Total daliy volume increased to 18,192 contracts changed hands. The weak external factors further enhanced the selling sentiment in the local CPO market. eCBOT soy oil had edged lower in late Asian time after its earlier mix trading, while Dalian palm also ended with losses.