Trader's Comment: Palm oil futures slid down further as it continued losing its momentum in a very quiet trading day.

Palm oil futures slid down further as it continued losing its momentum in a very quiet trading day. Benchmark Apr09 immediately hit the morning low of 1755 after a mix start at 1786. Easier eCBOT coupled with gloomy market sentiment sent prices to slid lower to 1755 before it bounced back to close at 1776 for the morning break. Prices continue to be under pressure but trading in thin and lack luster mood. It hovered mostly between 1750 to 1760 before a late selling activity emerged and sent Benchmark Apr09 to intra day low at 1739 before it finally settled RM37 lower at 1745. Total daily volume remains thin as many traders were still away for the Chinese New Year holiday.

Trader's Highlight

DJI-NEW YORK, Jan 28 (Reuters) - U.S. stocks rose on Wednesday, capping the S&P 500's longest winning streak since November, as financial stocks soared on optimism the Obama administration was making progress on a plan to relieve banks of money-losing assets.

Stocks initially added gains following the Federal Reserve's statement that it is prepared to buy long-term U.S. government debt, but the boost faded upon the realization that the Fed's purchases won't be made any time soon.

The Dow Jones industrial average <.DJI> finished up 200.72 points, or 2.46 percent, at 8,375.45. The Standard & Poor's 500 Index <.SPX> climbed 28.38 points, or 3.36 percent, to 874.09. The Nasdaq Composite Index <.IXIC> ended up 53.44 points, or 3.55 percent, at 1,558.34.

When trading resumes on Thursday, investors are also likely to focus on the U.S. House of Representatives' approval late Wednesday of an $825 billion economic stimulus bill. The House voted 244 to 188 to pass the bill containing President
Barack Obama's program for emergency spending and tax cuts. The measure next goes to the U.S. Senate for debate, starting probably sometime next week.

NYMEX-NEW YORK, Jan 28 (Reuters) - U.S. crude futures ended higher on Wednesday, supported by a rally in refined product futures and despite U.S. government data showing a much larger-than-expected weekly build in oil stocks.

On the New York Mercantile Exchange, March crude settled up 58 cents, or 1.39 percent, at $42.16 a barrel, trading from $40.60 to $43.60. Tuesday's 9.08 percent loss was the steepest in percentage terms since prices dropped 12.25
percent on Jan. 7.

CBOT-SOYBEANS - March up 6-1/2 cents at $9.82-1/2 a bushel; May up 6-1/4 at $9.90. Technical buying after slipping below $10 on Tuesday. Worries about smaller South American crop despite recent rains in Argentina, third largest soy exporter, and forecasts for more, weigh.

Paraguay estimated its 2008/09 soybean crop at 3.8 million tonnes, 43 percent below the previous harvest of 6.8 million due to drought.

Brazil soy crop revised down to 57.7 million tonnes-AgRural.

Analysts expect U.S. Census Bureau to report December soy crush at 139.8-141.5 million bushels, versus 144.6 million in November. [

CBOT-SOYOIL - March up 0.14 cent at 32.91 cents per lb. Turned up with soybeans. Crude also firmer, rebounding from Tuesday's big drop on outlooks for government to report bigger weekly crude and gasoline stocks.

FCPO-KUALA LUMPUR, Jan 28 (Reuters) - Malaysian crude palm oil futures slid 2.6 percent on Wednesday in light post-holiday trading after crude oil slumped and a cargo surveyor reported slower sales, fanning demand concerns.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled down 48 ringgit at 1,782 ringgit($497.1) a tonne.

Other traded contracts fell between 34 ringgit and 50 ringgit. Overall volume dropped to 6,079 lots

REGIONAL EQUITIES-BANGKOK, Jan 28 (Reuters) - Singapore shares closed at their
highest in two weeks and Malaysian shares rose almost one percent on Wednesday after a two-day holiday, with Singapore's financials and Malaysia's plantation firms leading gainers.

Traders said investors were pumping cash into Singapore financials amid hopes that U.S. President Barack Obama's new stimulus package may help ease the credit crisis.

DJI Daily: 8000 mark defended well

Market spike up after stuck in range trading for quite sometimes. 8000 mark so far provide a good support. Resistance is now looking at 8600.

KLSE Daily: in steady move

Market remains calm and steady. Currently, we look for the resistance at 888-889 (gap left over on 20/1/2009). Downside support is at 868-867.

FKLI Daily: gaining ground

Market gaining ground following a long white candle printed after cover gap at 883.5-887 had brighten up the immediate technical outlook. As for now, we look for the upside resistance at 902.5-907 (gap left over since 14/1/2009). downside support is pegged at 872-870.5 (gap left over on 28/1/2009).

FCPO Daily: 1800 mark violated

Market continue to lose ground after 1800 mark failed to hold. We now looking for the downside support at 1738-1723. While, upside resistance at 1815-1825 (gap left over on 28/1/2009).

Trader's Comment: CPO futures declined after the Lunar New Year break

CPO futures declined after the Lunar New Year break following a sharp fall of more than USD 3/barrel in NYMEX crude oil and losses in CBOT soyoil prices. Weak exports data for 1-25 day released by private cargo surveyors had added pressure to the market momentum. ITS reported at 952,478 (-29%) whereas SGS pegged at 1.016.477 (-24%) compare the same period in last month. News on Oil World cuts South American 2009 soy crop forecast following Argentine soy crop hit badly by the worst drought had lending some support to the local front. Benchmark Apr 09 prices bounced back from the intra-day low at 1770 to close at 1803, down RM 27 by midday break. However, late liquidation activities emerged once prices unable to sustain further at 1800 mark. Apr 09 then dipped to settle at 1782, down RM 48. Trading remained in dull mode and thin as lack of participant due to most players still away for Lunar New Year holiday. Total daily volume stood at 6,079 contracts changed hands.

DJI Weekly: remains in cautious mode

Overall technical landscape remains cautious as prices were hanging above 8000 mark closely. Failure to hold at 8000 mark again may see bear taking place more aggressively. Resistance is now looking at 8300-8360. Downside support is pegged at 7900-7880 level.

KLSE Weekly: Losing strength

Market looks losing strength as prices failed to hold. Currently, we look for the upside resistance at 900. Downside support is pegged at 835.

FKLI Weekly: Market momentum weaken further

Market momentum weakened further following another black candle printed. As for now, we are looking for the resistance at 900. Downside support is pegged at 831.

FCPO Weekly: moving Sideways

Market was in sideways move after the recent rebound yet 1800 mark was tried to defend. We are now looking for the upside resistance at 1897-1902. While, downside support is pegged at 1738-1723.

RTRS-Malaysia to hike palm tax threshold -paper

KUALA LUMPUR, Jan 23 (Reuters) - Malaysia is expected to raise the windfall tax threshold for crude palm oil next month as planters face high production costs, the Edge Financial Daily reported on Friday, quoting an unidentified source.
The paper said the threshold could be raised to around 2,600-2,800 ringgit ($718-$774) per tonne from 2,000 ringgit now, with a finance ministry decision expected by February.
"The authorities are coming up with a compromise between the planters and the government for the long term," the source was quoted as saying.

Breaking News-RTRS-UPDATE 1-Argentina declares agricultural drought emergency

BUENOS AIRES, Jan 26 (Reuters) - Argentina's President Cristina Fernandez on Monday declared an agricultural emergency in areas affected by the worst drought to hit the country in four decades.
The state of emergency will allow farmers in affected areas to defer some tax payments for one year, Fernandez said.
The exchange on Friday cut its estimate for Argentina's 2008/09 soy plantings to 17.9 million hectares (44.2 million acres) from 18.2 million hectares (45.0 million acres) previously, citing the drought.

Breaking News-RTRS-Oil World cuts S.American 2009 soy crop forecasts

HAMBURG, Jan 27 (Reuters) - Forecasts for 2009 soybean crops in key exporters Argentina and Brazil were sharply cut because of drought, Hamburg-based oilseeds analysts Oil World said on Tuesday.
It now estimates Argentina will harvest 44.0 million tonnes of soybeans in early 2009, down from its previous estimate of 48.8 million and down from the 2008 harvest of 46.7 million.
It has cut its forecast of Brazil's 2009 crop to 57.50 million tonnes from its previous estimate of 59 million and down from 60.02 million tonnes harvested by Brazil in 2008.

Breaking News-RTRS -UPDATE 1-Indonesia keeps Feb palm oil export tax at zero

JAKARTA, Jan 27 (Reuters) - Indonesia is maintaining its zero percent palm oil export tax in February, while raising the crude palm oil base export prices to $482 a tonne from $418 a tonne in January, a trade ministry official said on Tuesday.

Trader's Highlight

DJI-NEW YORK, Jan 27 (Reuters) - Better-than-expected corporate results lifted U.S. stocks on Tuesday, but oil prices plunged 9 percent as news of a fall in U.S. consumer confidence to a record low and tumbling home prices stirred concerns about demand.

Wall Street rallied for a third session in a row on hopes that despite the drumbeat of negative news, government efforts to stabilize the flagging U.S. economy will start to work.

The Dow Jones industrial average <.DJI> rose 58.70 points, or 0.72 percent, at 8,174.73. The Standard & Poor's 500 Index <.SPX> gained 9.14 points, or 1.09 percent, at 845.71. The Nasdaq Composite Index <.IXIC> added 15.44 points, or 1.04 percent, at 1,504.90.

NYMEX-NEW YORK, Jan 27 (Reuters) - U.S. crude futures remained sharply lower in post-settlement trading on Tuesday after data from the industry group American Petroleum Institute showed a small increase in domestic crude and gasoline supplies.

On the New York Mercantile Exchange, March crude at 5:15 p.m. EST (2215 GMT), last traded down $3.75, or 8.2 percent, at $41.98 a barrel. Earlier, it settled down $4.15, or 9.08 percent, at $41.58, trading from $41.41 to $47.49. The day's percentage loss was the steepest since prices dropped 12.25 percent on Jan. 7.

CBOT-SOYBEANS - March down 33 cents to $9.76 a bushel. Forecast for rain in drought-stricken Argentina, lower crude oil and firm dollar weigh on soybeans.

CBOT-SOYOIL - March down 1.00 cent to 32.77 cents a pound. Weak crude oil and lower soybeans weigh on soyoil.

FCPO-JAKARTA, Jan 23 (Reuters) - Malaysian crude palm oil futures fell 2.1 percent on Friday as traders took profit from a recent rally ahead of the Chinese New Year holiday, traders said.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange closed 40 ringgit lower, or 2.1 percent, at 1,830 ringgit a tonne ($505).

Other traded contracts fell between 35 ringgit and 45 ringgit. Overall volume was at 10,048 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Jan 27 (Reuters)-Thai shares closed at their highest in two weeks on Tuesday, lifted by gains in oil and shipping stocks, while Indonesian shares rallied to a one-week high on buying into big caps such as Bumi Resources.

Overall, regional markets tracked gains in the United States, although many major bourses remained closed for the Lunar New Year holiday.

Singapore <.FTSTI> and Malaysia <.KLSE> will resume trading on Wednesday, and Vietnam <.VNI> on Friday.

Trader's Comment: FCPO market gave up some of its gains to end lower.

FCPO market gave up some of its gains to end lower. Benchmark Apr 09 initially opened lower at 1840 as tracking losses in overnight CBOT soyoil prices. Trades were thin and move in tight range between 1840 to 1879 in most of the session. However, some intra-day liquidation activities comes in late session and saw prices dropped to the day low at 1825 before settling RM 40 lower at 1830. Total daily volume stood at 10,048 contracts changed hands.

Trader's Highlight

DJI - NEW YORK, Jan 22 (Reuters) - U.S. stocks slid on Thursday, after Microsoft's proposed job cuts and disappointing earnings shook investors, while economic data showed further deterioration in the labor and housing markets.

The Dow Jones industrial average fell 105.30 points, or 1.28 percent, to 8,122.80. The Standard & Poor's 500 Index dropped 12.74 points, or 1.52 percent, to 827.50. The Nasdaq Composite Index slumped 41.58 points, or 2.76 percent, to 1,465.49.

NYMEX - NEW YORK, Jan 22 - U.S. oil futures surged late to end higher on Thursday, as investors took heart after the Obama White House said it must move quickly on an economic stimulus package.

The energy market's bounce from the lows followed Wall Street, which pared losses after the White House announcement.

On the New York Mercantile Exchange, March crude settled up 12 cents. or 0.28 percent, at $43.67 a barrel, trading from $40.41 to $45.10.

CBOT-SOYBEANS - March down 8-1/2 cents at $10.12 a bushel.

Setting back after Wednesday's rally due to drought worries in Argentina, the world's third largest soy producer. Forecast for rains this weekend triggering profit taking.

CBOT-SOYOIL - March down 0.42 cent per lb at 33.53 cents.

Pressured by weakness in soybeans and crude oil.

FCPO - JAKARTA, Jan 22 - Malaysian crude palm oil futures rose 3.4 percent on Thursday to end at a one-week high, fuelled by rising crude oil prices and short-covering in late trade, traders said.

The market had been quiet for most of the day as a holiday mood settled in ahead of Chinese New Year holiday before the short-covering activities kicked in, they said.

The Bursa Malaysia Derivatives Exchange will be closed next Monday and Tuesday.

"We suddenly saw a lot of short-covering activities in the second half of the day due to the strength in crude oil and soyoil prices," a trader at a Kuala Lumpur-based brokerage said.

Another said active deals in the cash market during the day also lifted buying. "It is really unusual. I had expected a very slow day," the trader said.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange rose 61 ringgit, or 3.4 percent, to 1,870 ringgit ($518) per tonne, the highest finising since Jan. 15.

REGIONAL EQUITIES - BANGKOK, Jan 22 - Singapore's stock market ended off the highs on Thursday after the annual budget failed to dispel concern about the economy, while Thailand's index hit its highest in a week as firm oil lifted energy stocks.

Singapore's Straits Times Index ended 0.25 percent higher after rising 1.9 percent earlier. Big caps ended mixed, with developer CapitaLand falling 4.2 percent and Oversea-Chinese Banking Corp down 0.6 percent.

Other Southeast Asian stock markets were helped by jumps in U.S. stocks on Wednesday, with Malaysia up 0.64 percent, Indonesia gaining 0.44 percent, the Philippines climbing 1.3 percent and Vietnam adding 0.36 percent.

Analysts said the regional stock market rally looked set to be short-lived as poor economic data would depress investors.

Trader's Comment: CPO futures reversed previous day losing streak to end generally higher.

CPO futures reversed previous day losing streak to end generally higher. Position squaring activities ahead of Chinese New Year holiday were evident in late trading session. Earlier trades were in dull mode stuck in the range of 1821-1838 with midday volume at 1,108 contracts which far below the average of 3000-4000. Surprise move came in late session boosted by position squaring activities. Benchmark Apr 09 pushed to the intra-day high at 1881 before settling RM 61 higher at 1870. Total daily volumes accelerated to 12,483 contracts changed hands. Another reason of position squaring may due to the higher initial margin charged for CPO futures which increase to RM 10,700 from RM 7,250 effective by today.

FCPO Daily: Cheer up a little

Market violated the support at 1860-1870 has cheer up a little the recent bored trading. Chart wise, consolidation phase may extended in near term. We continue to look for downside support at 1800-1790. Upside resistance is now looking at 1890-1900.