Trader's Comment: Palm oil futures extended its overnight gains on the back of strong external markets.

Palm oil futures extended its overnight gains after prices gapped up and stayed higher through out the day on the back of strong external markets. Benchmark Oct09 immediately gapped up RM42 to open at 2165 and thereafter hovering between 2175-2144 through out most of the sessions. Buying support was generally due to the strong external markets in the Asian time trading as NYMEX crude oil and Dalian palm had continued to edge higher through out the day while eCBOT soy oil also recovered from its earlier losses and gained higher. Benchmark Oct09 surged further to hit intra day high of 2184 in the second session but some intra-day profit taking activities saw prices retreated back into earlier range again and settled RM39 higher at 2162 with total volume stood at 13,460 contracts changed hands.

Trader's Highlight

DJI-NEW YORK, July 20 (Reuters) - U.S. stocks jumped on Monday, driving the S&P 500 to an eight-month closing high, after CIT Group Inc was thrown a lifeline to avoid bankruptcy, and investors bet corporate America would log another strong set of earnings this week.

CIT , a lender to nearly 1 million small- and mid-sized U.S. companies, reached a deal with bondholders for $3 billion in emergency financing, a source familiar with the situation said. CIT's shares soared 78.6 percent to $1.25.

Investors were encouraged by signs that the CIT rescue was a private-sector measure instead of a government bailout.

The Dow Jones industrial average <.DJI> shot up 104.21 points, or 1.19 percent, to 8,848.15. The Standard & Poor's 500 Index <.SPX> gained 10.75 points, or 1.14 percent, to 951.13. The Nasdaq Composite Index <.IXIC> rose 22.68 points, or 1.20 percent, to 1,909.29.

NYMEX-NEW YORK, July 20 (Reuters) - U.S. crude oil futures ended higher on Monday after seesawing, extending last week's strong gains as a weak dollar and optimism reflected in stronger equities markets kept oil moving up.

On the New York Mercantile Exchange, August crude rose 42 cents, or 0.66 percent, to settle at $63.98 a barrel, trading from $63.19 to $64.90.

CBOT-SOYBEANS - August up 23-1/2 cents at $10.33 a bushel

Tight soy stocks, gains in equities and weak dollar, which makes U.S. commodities a better buy for importers, combine to lift soy futures. Prices continue to rebound from last week's sell-off.

CBOT-SOYOIL - August up 0.52 cent at 35.34 cents per lb. Following soybeans. Strength in equities markets combined with weak dollar also lifting market.

FCPO-KUALA LUMPUR, July 20 (Reuters) - Malaysian crude palm oil futures rose 1.8 percent on Monday, extending the previous week's gains as Asian festival demand strengthened and other vegetable oil markets gained.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange settled up 39 ringgit to 2,162 ringgit ($610.9) per tonne. Overall volume stood at 13,460 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, July 20 (Reuters) - Stock markets in Singapore and
Malaysia extended their gains into a fifth day on Monday, leading most other Southeast Asian bourses higher, with optimism over quarterly earnings spurring demand for financials and big caps.

Singapore <.FTSTI> rose 1.04 percent to its highest since Sept. 25, with developer CapitaLand up 2.1 percent, while Malaysia <.KLSE> added 1.6 percent to its highest since Aug. 5, with power firm Tenaga Nasional up 3.1 percent.

Elsewhere, the Philippine index <.PSI> rose 1.3 percent on resuming trade after a typhoon caused the cancellation of Friday's session, while Vietnam <.VNI> bucked the trend, ending down 3.7 percent.

DJI Daily: 8800 tested

Market tested the immediate resistance at 8800 and looks may want to challenge 9000 mark. To the downside, support is maintain at 8000. We are still waiting for a significant breakout either way of 9000 level or 8000 level to identify a more clearer direction in near term.

KLSE Daily: still more room to the upside

Bull run looks likely to extend in near term as overall technical landscape maintain in bullish posture. To the upside, resistance is now at 1150-1165 followed by 1180-1190. While, downside support is pegged at 1100-1095.

FKLI Daily: Non-stop rallied

A non-stop bull rallied violated the immediate resistance at 1140 had further beautified the overall bullish picture. To the upside, immediate resistance is now looking at 1150-1170 followed by 1200. While, downside support is pegged at 1110-1115.

FCPO Daily: Improved

Immediate technical outlook has been improved following market extended gains. Nevertheless, more effort is still needed to escape from the current technical correction phase. As for now, we are now looking for the immediate downside support at 2144-2123 (gap left over on 20/7/2009). To the upside, immediate resistance is at 2200-2250.