FCPO prices fell to a fresh 11-month low

CPO futures prices fell to a fresh 11-month low on weaker crude oil prices. Benchmark Oct 08 initially opened RM 8 lower at 2663. Speculative selling interest emerged once prices failed to hold at the intra-day high of 2675. The already weak market momentum again hammered down to a fresh year low at 2628 before recover to close at 2660 in midday break.Heavy selling activities continue to pressure the market momentum once 2600 level was unable to hold and saw Oct 08 dropped to settle at fresh year low at 2561, down RM 110. Total volume stood at 15,424 contracts changed hands.

FKLI close at day low

FKLI close at day low and broke the immediate support at 1108-1106.5. Market is slowly covered the remaining gap left over at 1106.5-1103.5. We now look for the support at 1086-1083. Resistance at 1133.

KLSE violated 1120 and eyeing gap at 1116-1112

1120 immediate support violated and looks may want to cover the gap left over on end-Jul, 2008 at 1116-1112. Immediate resistance at 1133-1138.

FCPO fell to a fresh 10-month low

FCPO fell further to a fresh 10-month low at 2628. We continue to look for the support at 2600-2520. While for upside, resistance is at 2728-2779 (gap left over yesterday).

FKLI hourly losing ground

FKLI hourly losing ground after market failed to hold at 1125.5. It tested the neckline support again at 1117. Looks may target the support at 1108-1106.5 followed by 1106.5-1103.5 (remaining gap left over on end-Jul, 2008). Resistance is at 1133-1132.5

KLSE tested again the immediate support at 1120

1120 immediate support tested again. We look for immediate support at 1116-1112.5 (gap left over on end-July, 2008). Immediate resistance is at 1128-1129.

Breaking news-RTRS-Refiners balk at China soyoil reserve sale-Traders

BEIJING, Aug 11 (Reuters) - Large refiners in China have turned down Beijing's offer to sell them crude soyoil from state reserves, since the offer price was higher than plummeting market prices, traders said on Monday.

Breaking news-RTRS-Indonesia sees '09 palm oil output of 19.4 mln tonnes

JAKARTA, Aug 11 (Reuters) - Indonesia expects its crude palm oil output to rise to 19.4 million tonnes in 2009, up more than 4 percent on producer's forecasts for this year, as more trees mature and the cultivation area expands, Agriculture Minister Anton Apriyantono said on Monday.

Breaking news-RTRS-SEC emergency short sale will expire Tuesday

(USD) SEC emergency orders enacted on July 15 that require short sellers of stock in 19 major financial services firms will expire Tuesday. The SEC is slated issue new proposal this week, protecting publicly traded companies from abusive naked short selling.

Trader's Highlight

DJI-NEW YORK, Aug 11 (Reuters) - U.S. stocks rose on Monday as oil prices closed lower for a sixth day, improving prospects for consumer and business spending.

The Dow Jones industrial average <.DJI> rose 48.03 points, or 0.41 percent, to 11,782.35, while the Standard & Poor's 500 Index <.SPX> gained 9.00 points, or 0.69 percent, to 1,305.32. The Nasdaq Composite Index <.IXIC> jumped 25.85 points, or 1.07 percent, to 2,439.95.

NYMEX-NEW YORK, Aug 11 (Reuters) - U.S. crude oil futures fell for the sixth day in row on Monday as concerns about slowing global demand and a stronger dollar combined to knock down crude prices, despite the conflict between Russia and Georgia.

On the New York Mercantile Exchange, September crude settled down 75 cents, or 0.65 percent, at $114.45 a barrel, trading from $112.72, its lowest since May 2, to $116.90.

CBOT-SOYBEANS - Up 16 cents per bushel to down 6, with August up 16 at $12.15 per bushel.Short-covering noted ahead of the release early on Tuesday of USDA's August crop production reports.

Traders expect USDA late on Monday to show a 1 to 2 percentage point improvement in corn and soy conditions.

Average analyst estimate for 2008 U.S. soy production seen at 3.001 billion bushels, basically unchanged from USDA's July forecast for 3.0 billion. U.S. soy 2008/09 ending stocks seen at 141 million bushels vs USDA July forecast of 140 million.

SOYOIL - Up 0.02 to down 0.05 cent per lb, with August up 0.02 at 50.41 cents per lb.
Gains in soy supportive, but decline in crude oil adding pressure.

FCPO-KUALA LUMPUR, Aug 11 (Reuters) - Malaysian crude palm oil futures fell as much as 4.3 percent to a new 10-month low on Monday, as faltering energy and vegetable oil markets encouraged a sell-off, despite good export data from cargo surveyors.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange fell as much as 120 ringgit to 2,659 ringgit a tonne ($805), a level not seen since Oct. 11, 2007. The contract then settled down 108 ringgit at 2,671 ringgit.

REGIONAL EQUITIES-Asian stocks rose as oil prices briefly dipped below $115 a barrel and on a growing view that the U.S. dollar's decline is nearing an end.

Vietnam stocks <.VNI> gained 2.4 percent, while the Philippine index <.PSI> added 2.8 percent, but the Jakarta index<.JKSE> declined 2.8 percent.Singapore stocks <.FSTI> and Malaysia <.KLSE> both edged 0.6 percent higher.

DJI inching higher violated the double top formation

DJI inching higher violated the double top formation. Looks may want to challenge the immediate resistance at 11924. Immediate support at 11521.

Trader's comment: CPO futures extended its losses to hit fresh year low

CPO futures extended its losses to hit fresh year low, dragged down by heavy losses in crude oil and soyoil prices. Official Jul 08 supply and demand data released by MPOB was basically view as neutral figure; July production up 6.2% at 1.56 million tonnes whereas end-stock draw down 2.8% to 1.98 million tonnes. Private cargo surveyors's 1-10 August 08 export figures were more or less within expectation. SGS put 1-10 Aug export at 401,800 vs 326,109 in the same period in July. At closed, Oct 08 settled RM 108 lower at 2671.

FCPO another fresh year low

Another fresh year low as market violated the physiological support at 2700 levels. Bear led all the way and saw prices sank to close with triple digit losses with a long black candle. We now put 2520-2600 as immediate support. For upside, resistance is at 2728-2779 (gap left over today).

FKLI in consolidation phase

FKLI in consolidation phase as prices stuck between the overhead resistance 1140 and support at 1108-1106.5.

KLSE supported at 1120

Looks like 1120 pretty supported after tested few times yet manage to defend. We continue to look for the gap left over 1116-1112.5 (gap left over on end-July, 2008). Resistance remained at 1140-1150.

Can you see the bottom in FCPO hourly?

I can't see it yet. We now look for the immediate support at 2520-2600. For upside, immediate resistance at 2728-2779 (gap left over this morning).

FKLI hourly broke the upper band of triangle

FKLI hourly broke the upper band of the triangle and triggered the buy stop at 1125. Looks market defended well at 1106.5-1108.0 after last week tested few times but yet to break. For upside, we look for the resistance at 1143-1143.5.

USD/MYR broke the overhead resistance at 3.280

USD/MYR broke the overhead resistance at 3.280 easily and appears in the up-swing mode, likely to challenge the overhead resistance at 3.35-3.36 level.

Trader's Highlight

DJI-NEW YORK, Aug 8 (Reuters) - U.S. stocks soared on Friday rounding out their best week in more than three months, as oil plunged below $115 a barrel, easing inflation concerns and improving prospects for business and consumer spending.

The Dow Jones industrial average <.DJI> rose 302.89 points, or 2.65 percent, to 11,734.32, while the Standard & Poor's 500 Index <.SPX> jumped 30.25 points, or 2.39 percent, to 1,296.32. The Nasdaq Composite Index gained 58.37 points, or 2.48 percent, to 2,414.10.

NYMEX-NEW YORK, Aug 8 (Reuters) - U.S. crude oil futures closed nearly $5 lower on Friday as the dollar rallied on concerns about slowing European and Asian economies, feeding worries about lower oil demand.

On the New York Mercantile Exchange, September crude settled down $4.82, or 4.02 percent, at $115.20 a barrel, after trading between $114.90 and $120.08. The settlement was the lowest since May 1's $112.52 and the day's low was the lowest since crude hit $111.78 on May 2.

CBOT-SOYBEANS - August down 44 cents at $11.99 per bushel;new-crop November down 58-1/2 at $11.80-1/2.

Nearly ideal crop weather in the U.S., rallying dollar and falling crude oil to weigh on market. Traders hesitant to hold a position in the market before weekend and Aug. 12 USDA crop report.

Ahead of Aug. 12 crop report, the average analyst estimate for 2008 U.S. soy production seen at 3.001 bln bushels, basically unchanged from USDA's July forecast for 3.0 bln. U.S. soy 2008/09 ending stocks seen at 141 mln bushels vs USDA forecast of 140 mln bushels.

SOYOIL - August down 1.70 cents at 50.39 cents per lb.Pressed by weakness in crude, palm oil.

FCPO-JAKARTA, Aug 8 (Reuters) - Malaysian crude palm oil futures tumbled more than 2 percent on Friday as faltering crude oil dimmed prospects for vegetable oil-based biofuels, heightening concerns about slowing demand, dealers said.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange ended 66 ringgit down, or 2.32 percent, at 2,779 ringgit ($842) a tonne on Friday.

REGIONAL EQUITIES-Aug 8 (Reuters) - Most Southeast Asian markets fell on Friday.

Singapore <.FTSTI> and Malaysia <.KLSE> edged 0.9 percent lower, while Jakarta <.JKSE> dipped 0.1 percent.But the Philippines <.PSI> and Vietnam <.VNI> bucked the trend to rise 0.3 and 1.2 percent respectively.

DJI Weekly: Soared to close in best week for more than three months

DJI soared to close in best week for more than three months with a long white candle. We continue to look for the resistance and support at 11924.19 and 11125-11157 level respectively in near term.