FCPO ended down for three straight days

Another black day for CPO futures as overnight crude oil futures in NYMEX slumped another USD5 to close below USD130 at USD129.29 a barrel. Benchmark Oct 08 plunged to 3358 before it recover and rebound to settle RM 43 lower at 3392.

Still look bullish or bearish in FCPO?

Its look bearish to me. A long black candle violated the triangle zone has brought a new direction to the market. This is the end of the consolidation in FCPO as shown in the weekly chart. Market may continue to move lower in near term. Look for the 1st support at 3280-3290 followed by 3170-3150. For upside, resistance at 3590-3600.

Market tone: weak

Do you see any bull in the weekly FKLI?

No, i don't. Big head and shoulder coupled with weak closing for the week with a long black candle printed. Bear is likely to continue its marathon in near term. We continue to look for the underline support at 1045.5. For upside, resistance is at 1140.0-1145.0

Market view: hold short

KLSE close at the week low

KLSE close at the week low with a big head and shoulder. Downside move likely to continue and may target the underline support at 1090.39 in near term.

Market tone: weak

RTRS - Indonesia may cut August palm oil export tax to 15% from 20% in July - Industry Official

FCPO tumbles

FCPO tumbles after 3,400 levels failed to defend. Market may continue to move lower and target the gap left over earlier May 08 at 3342-3352. While, resistance is at 3405-3433 (gap left over this morning).

KLSE fresh year low

KLSE hit fresh year low in midday break. Market may target 1090.39 in near term.

Lack of follow through buying interest in FKLI

Lack of follow through buying interest support saw prices easing off after the opening gap up.

Market view: Sell stop triggered. Turn short with buy stop at 1125-1130.

Long for FKLI following supportive overnight DJI

Market view: turn long with sell stop at 1098.5-1096.0

Trader's Highlight

DJI-NEW YORK, July 17 (Reuters) - U.S. stocks soared on Thursday on a sharp drop in oil and several unexpectedly strong earnings reports, but the rally may not hold into Friday, given disappointing results from Google, Microsoft and Merrill Lynch after the bell.

The Dow Jones industrial average <.DJI> surged 207.38 points, or 1.85 percent, to 11,446.66, in its largest two-day percentage gain since Oct. 15, 2002, when it had a two-day gain of 5.2 percent. The Standard & Poor's 500 Index <.SPX> rose 14.96 points, or 1.20 percent, to 1,260.32. The Nasdaq Composite Index <.IXIC> climbed 27.45 points, or 1.20 percent, to 2,312.30.

NYMEX-NEW YORK, July 17 (Reuters) - U.S. crude oil futures ended down for the third straight day on Thursday, dropping to the lowest level in six weeks.Trading was volatile as demand worries persisted after Wednesday's government data showed unexpectedly large increases in crude and product stocks. August crude settled down $5.31, or 3.95 percent, at $129.29 a barrel.

CBOT-SOYBEANS - August down 52 cents at $15.21. Pressured by favorable growing conditions for soybeans and the Argentine Senate's rejection of an export tax hike on soy exports. Drop in crude oil also weighs.

SOYOIL - September down 0.67 cent at 63.42 cents per lb. Spillover selling from soybeans. Crude oil falls more than $4 per barrel.

FCPO-KUALA LUMPUR (Dow Jones)--Crude palm oil futures fell to a 10-week low Thursday as selling pressure swept through several commodity markets and investors rushed to take profits amid weak demand in the physical trade. The benchmark October contract on Bursa Malaysia Derivatives ended down MYR31 at MYR3,435 a metric ton after reaching a low of MYR3,418 - levels not seen since May 8.

Regional equities-July 17 (Reuters) - Most Southeast Asian stocks edged higher on Thursday, helped by a surge in U.S. banking shares and easing crude prices. Singapore <.FTSTI> rose 1 percent and Vietnam <.VNI> gained 0.7 percent, while Malaysian stocks <.KLSE> edged up 0.2 percent despite ongoing political tensions following the arrest of a leading opponent of the government.

DJI rebound for two straight days

DJI rebound for two straight days after hit the recent low had cushioned the market downside momentum.

KLSE recouped from year low

KLSE hit year low at 1111.62 in intra-day basis but not closing. Market may consolidate in near term.

Market tone: weak

FKLI close in positive territory

Short covering activities were evident after prices hit the intra-day low at 1098.5 and stayed firm despite KLSE hit fresh year low. Market may consolidate in near term before downtrend resume. For now, look for the immediate resistance at 1125-1130. For downside, immediate support is at 1096 followed by 1083.

Market view: cover short position

FCPO broke support level between 3430-3435 level

Prices broke its support level between 3430-3435 in afternoon session. This had painted bearish picture in already weaken chart. Immediate target looks heading to 3306.

Short covering on FKLI

FKLI looks firm despite KLSE drop to year low at 1111.62.

Market view: cover short position

FCPO losing ground

FCPO erased early gains to end lower in midday break. Market momentum weakened further. As for now, continue to look for the support at 3430-3435, while upside resistance at 3521-3535 (gap left over on 16th July, 2008).

Fresh year low for KLSE

KLSE hourly hit fresh year low at 1115.20

Market tone: weak

FKLI remains under pressure

FKLI hourly off high.

Market view: hold short with buy stop adjusted to 1120-1125

Breaking news-Crude palm oil prices to rise in 2008/09-analyst

LONDON, July 16 (Reuters) - Crude palm oil prices should rise during 2008/09 with consumption growing at a faster pace than production, Standard Chartered analyst Abah Ofon said in a report on Wednesday.Ofon said production increases in Indonesia and Malaysia however, that tight export supplies of other edible oils such as sunflower oil and soyoil and the wide price discount for CPO boosted exports during the first half of 2008.
"In the near term, high energy prices and freight costs will provide some support as will spillover gains from the soy complex on account of tight stocks in the US and crush delays in Argentina," he said. Ofon said biodiesel demand could now be the weakest part in the overall demand picture with the rising cost of edible oils slowing biodiesel output growth in a number of producers, including Europe.

Trader's Highlight

DJI-NEW YORK, July 16 (Reuters) - U.S. stocks jumped on Wednesday after strong results at Wells Fargo fueled a powerful rally in the battered banking sector and an unexpected leap in U.S. crude supplies led oil prices to fall sharply.The Dow Jones industrial average <.DJI> rose 276.74 points, or 2.52 percent, to 11,239.28. The Standard & Poor's 500 Index <.SPX> gained 30.43 points, or 2.50 percent, to 1,245.34. The Nasdaq Composite Index <.IXIC> added 69.14 points, or 3.12 percent, at 2,284.85.

Data showed U.S. consumer price inflation accelerated to an annual rate of 5 percent in June -- the biggest year-on-year rise since 1991 and well above economists' forecasts -- and U.S. government debt prices fell sharply.

NYMEX-NEW YORK, July 16 (Reuters) - U.S. crude oil futures ended lower for the second day in a row on Wednesday as government inventory data showed surprise increases in crude and gasoline stocks and a larger-than-expected build in distillates. August crude was down $4.14, or 2.98 percent, at $134.60 a barrel, trading between $132, which was the lowest price since June 25, and $139.30.

CBOT-SOYBEANS - August up 31 at $15.73 per bushel,new-crop November up 32 at $15.48.Turned higher on trade talk of forecasts indicating possible hotter and drier weather in the U.S. Midwest that may hamper growth and development of the 2008 soy crop. Support also from concern about Argentine farm protests tied to the government's soy export tax. Market oversold and due for a short-covering bounce.

SOYOIL - August up 1.06 cents per lb at 64.09 cents per lb. Following soybeans in volatile Midwest weather market.

FCPO-KUALA LUMPUR, July 16 (Reuters) - Malaysian crude palm oil futures lost 2.6 percent on Wednesday as investors fretted over the lack of momentum in export growth while crude oil fell overnight.

Regional equities-July 16 (Reuters) - Most Southeast Asian stock markets eased on Wednesday, dented by worsening global economic conditions and a sharp pullback in oil prices which weighed on energy shares such as Thailand's PTT PCL .Malaysia <.KLSE> edged 0.7 percent lower and the Philippine index <.PSI> fell 1.6 percent, but Singapore <.FTSTI> and Indonesia <.JKSE> performed better, inching 0.2 percent up.