Trader's Comment: Palm oil futures inched higher after tight range trading.

Palm oil futures inched higher after tight range trading. Benchmark Dec09 had been hovering between 2130-2116 through out most of the sessions before it hit intra day low of 2112 in late trading and settled RM10 higher at 2115. The strong close in overnight NYMEX crude oil which gained more than USD3 had lifted BMD market to trade in positive territory today. Nevertheless, trading activity remained inactive and volume fell dramatically with only a total of 9,041 contracts traded in the market due to China market holiday in conjunction with their National Day. Asian time NYMEX crude oil eased off on profit taking after its overnight strong gains while eCBOT soy oil traded mix to steadier.

Trader's Highlight

DJI-NEW YORK, Oct 1 (Reuters) - The Dow and S&P 500 suffered their worst one-day fall in three months on Thursday after economic reports fueled fears about the recovery's strength.

The Dow Jones industrial average <.DJI> tumbled 203.00 points, or 2.09 percent, to end at 9,509.28. The Standard & Poor's 500 Index <.SPX> slid 27.23 points, or 2.58 percent, to 1,029.85. The Nasdaq Composite Index <.IXIC> lost 64.94 points, or 3.06 percent, to 2,057.48.

Bank of America Corp shares slipped 4.2 percent to $16.21 after Chief Executive Ken Lewis said he was retiring after months of being dogged by a series of government investigations into the company's acquisition of Merrill Lynch. The company did not name a successor. The news was announced late on Wednesday.

NYMEX-NEW YORK, Oct 1 (Reuters) - U.S. crude futures closed higher in a late run-up on Thursday on worries about talks between Iran and the West over its nuclear program and as follow-through buying spurred by improved demand lifted gasoline futures.

U.S. President Barack Obama said on Thursday Iran heard a unified message from the international community at talks in Geneva, and Tehran must now take steps to ensure its nuclear program is not for weapons.

On the New York Mercantile Exchange, November crude settled up 21 cents, or 0.3 percent, at $70.82 a barrel, trading from $69.13 to $71.39.

CBOT-SOYBEANS - November down 9 cents at $9.18 a bushel. Following drop in crude oil market amid thin volume. Expectations for a large crop also weigh on prices.

CBOT-SOYOIL - October up 0.28 cent at 34.25 cents per lb; December up 0.26 cent at 34.59. Some unwinding of meal/oil spreads supports market but drop in crude oil prices limits gains.

FCPO-KUALA LUMPUR, Oct 1 (Reuters) - Malaysian crude palm oil futures inched up 0.5 percent on Wednesday as a jump in crude prices the previous day lifted the market in light trade.

The benchmark December contract on the Bursa Malaysia Derivative Exchange settled up 10 ringgit to 2,115 ringgit ($611.3) per tonne after going as high as 2,130 ringgit.

REGIONAL EQUITIES-On Monday, the market fell to 2,082 ringgit, a level unseen
since Se BANGKOK, Oct 1 (Reuters) - Southeast Asian stock markets ended mixed on Thursday with Thailand outperforming on buying in banking shares while big capitalised companies such as Ayala Land, Axiata Group and Medco Energy led the way elsewhere.

Regional markets came off their days' high as trading volume declined amid caution over the pace of economic recovery. Thailand's index <.SETI> climbed 1.4 percent, Malaysia's index <.KLSE> added 0.5 percent, Indonesia's index <.JKSE> was up 0.4 percent while the Philipines <.PSI> gained 1 percent.

Indexes in Singapore <.FTSTI> and Vietnam <.VNI> drifted into a negative territoy, sliding 0.6 percent and 2.1 percent, respectively. pt. 14.

FCPO Daily: No clear direction

Market stuck in tight rangy mode above 2100 levels without any clear direction. Thus, market may continue its consolidation phase in near term. Hence, we maintain the downside support and upside resistance at 2070 and 2190-2220 levels respectively.

DJI Daily: Disappointed bulls

A sharp decline to violate the downside support at 9600 levels had weaken the overall technical outlook. Thus, upside gain is limited following prices losing ground and more room to bias downside potential in near term market. As for now, we are looking for the immediate support at 9440 to 9420 levels followed by 9300 levels. To the upside, resistance is pegged at 9820-9850 levels.

FKLI Daily: Bulls look little tiredness

Market continue to move in sideways manner defended above 1200 levels. However, bulls look little tiredness. Thus, any breakdown below the 1200 levels may weaken the overall positive momentum. We maintain the immediate downside support at 1200 followed by 1190-1185. To the upside, resistance is maintain at 1220-1225 followed by 1232.