Trader's Comemnt: Palm oil futures recovered from its earlier losses to edge higher on strong external markets.

Palm oil futures recovered from its earlier losses to edge higher on strong external markets. Initially, market sentiment was weak in the morning session as Benchmark Dec09 fell to intra day low of 2013 after opened RM4 higher at 2046. However, as Asian time NYMEX crude oil and eCBOT soy oil began to improve in second session saw CPO prices followed suit. Benchmark Dec09 started to climb steadily on some bargain hunting covering activities. Prices surged further in late trading as no sign of easing off and supported well. This prompted aggressive intra day short covering and push prices to settle RM20 higher at 2062 after hitting intra day high at 2068. The positive external markets had lent strong support to BMD. Both crude oil and soy oil were seen to trade 1% higher during late Asian time trading. Daily volume was more than doubled the usual level with a total of 26,782 contracts traded in the market.

Trader's Highlight

DJI-NEW YORK, Oct 6 (Reuters) - U.S. stocks rose on Tuesday amid signs the global economy was recovering and optimism that corporate earnings reports will beat expectations.

Australia became the first G20 country to raise interest rates since the onset of the financial crisis, saying that the worst danger for the economy had passed, which underscored for many that the global economy was on the mend.

The Dow Jones industrial average <.DJI> was up 131.50 points, or 1.37 percent, at 9,731.25. The Standard & Poor's 500 Index <.SPX> was up 14.26 points, or 1.37 percent, at 1,054.72. The Nasdaq Composite Index <.IXIC> was up 35.42 points, or 1.71 percent, at 2,103.57.

NYMEX-NEW YORK, Oct 6 (Reuters) - U.S. crude oil futures rose slightly in post-settlement trading on Tuesday after industry data showed a surprise, if small, drawdown in crude stocks last week.

The U.S. Energy Information Administration will follow with its own report on Wednesday at 10:30 a.m. EDT.

A British newspaper report that Gulf Arab states were in secret talks to abandon the U.S. currency in oil trade added pressure to the dollar. But top officials of Saudi Arabia and Russia, speaking on the sidelines of International Monetary Fund meetings in Istanbul, denied there were such talks.

On the New York Mercantile Exchange, at 5 p.m. EDT (2100 GMT) November crude was up 79 cents, or 1.12 percent, at $71.20 a barrel. It had settled up 47 cents, or 0.67 percent, at $70.88, trading from $70.06 to $71.97.

CBOT-SOYBEANS - November up 25 cents at $9.10 a bushel. Broke above $9 on concerns of U.S. harvest delays, crop immaturity, following the strength in corn. Rally in crude and falling dollar also support.

CBOT-SOYOIL - October up 0.41 cent at 33.94 cents; December up 0.41 cent at 34.26. Spillover support from gains in soy and crude oil.

FCPO-JAKARTA, Oct 6 (Reuters) - Malaysia's crude palm oil futures rose 1 percent on Tuesday, climbing from a 12-week low hit in early trade, supported by stronger crude oil and soybean prices, traders said.

The benchmark December contract on the Bursa Malaysia Derivative Exchange settled up 20 ringgit, or 1.0 percent, to 2,062 ringgit ($600.55) a tonne, after going as low as 2,013 ringgit, a level not seen since July 13. Trade volumes were at 26,787 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Oct 6 (Reuters) - Singapore shares rose 1 percent on
Tuesday as CapitaLand hit a three-week high following its shopping mall arm listing plan while Indonesia surged to near 19 month highs, with Astra International jumping after an upgrade.

Thailand <.SETI> ended up 1.8 percent, the Philippines <.PSI> gained 2.3 percent and Vietnam <.VNI> rose 0.6 percent. But Malaysia <.KLSE>, which traded in negative territory throughout the session, ended off 0.3 percent.

FCPO Daily: still weak

Prices rebounded to end off the high after hit the fresh low at 2013. Market momentum remains weak despite prices trying hard to defend at 2000 levels. Thus, we continue to look for the immediate downside support at 2000 followed by 1980-1960. To the upside, resistance is pegged at 2100-2130.

DJI Daily: Correction phase is likely to extend

Correction phase is likely to extend in near term. Thus, we maintain the immediate support at 9430-9400 levels followed by 9300 levels. To the upside, resistance is pegged at 9820-9850 levels.

FKLI Daily: 1200 supported well

Market momentum strengthen further following prices rebounded for consecutive three trading days after found some support at 1200 levels. Hence, market may continue to consolidate in the range of 1200 to 1232 in near term.