Trader's C omment: Palm oil futures recouped some of its earlier losses to end marginally lower.

Palm oil futures recouped some of its earlier losses to end marginally lower. The heavy losses in overnight CBOT soy oil saw Benchmark Aug09 to fall through out the morning session and hit intra day low at 2525. However, it started to bounce back in the second session and began to climb steadily until it hit intra day high of 2578, tracking the strong rebound of Asian time NYMEX crude oil following Goldman Sachs Group Inc. raised its crude oil price forecast for the end of 2009 to $85 a barrel from its previous target of $65 a barrel, in a research report today. At the closing bell, Aug settled at RM6 lower at 2569. External vege oil markets were rather mix as Dalian palm ended more than 1% lower while eCBOT soy oil edged higher. Daily volume improved slightly with total 13,291 contracts changed hands.

Trader's Highlight

DJI-NEW YORK, June 3 (Reuters) - U.S. stocks tumbled on Wednesday, halting a four-day winning streak, as falling oil prices hit energy shares, while less upbeat economic reports rekindled worries about recovery prospects.

The Dow Jones industrial average <.DJI> dropped 65.63 points, or 0.75 percent, to 8,675.24. The Standard & Poor's 500 Index <.SPX> shed 12.98 points, or 1.37 percent, to 931.76. The Nasdaq Composite Index <.IXIC> declined 10.88 points, or 0.59 percent, to 1,825.92.

Federal Reserve Chairman Ben Bernanke said in an appearance before the House Budget Committee he expected to see "some positive growth later this year" but not robust growth.

NYMEX-NEW YORK, June 3 (Reuters) - U.S. crude futures fell more than 3 percent on Wednesday, battered by government data showing a large, surprise increase in crude inventories and as the dollar rebounded strongly.

On the New York Mercantile Exchange, July crude settled down $2.43, or
3.54 percent, at $66.12 a barrel, trading from $64.95 to $68.95.

July crude hit an intraday high of $69.05 on Tuesday, the highest front-month price since $70.46 was reached on Nov. 5.

CBOT-SOYBEANS - July down 27 cents at $11.82 per bushel. Firm dollar, lower crude oil and drop in stock market weighed on soybean futures with profit-taking a key feature after the rally early in the week to eight-month highs.

CBOT-SOYOIL - July down 1.25 cents at 39.25 cents per lb. Lower crude oil and profit-taking weighing on soyoil futures.

FCPO-JAKARTA, June 3 (Reuters) - Malaysian palm oil futures dropped for a second day on Wednesday as investors, spooked by worries over higher production, continued to lock in profits from the recent crude oil-driven rally, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange settled down 23 ringgit to 2,575 ringgit ($739.52) per tonne. Overall volume was 9,830 lots of 25 tonnes each, less than the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, June 3 (Reuters) - Banking and building firms powered Thai shares to a 3-week high on Wednesday, while an interest rate cut triggered buying of financials and index heavyweights in Indonesia.

Singapore's index <.FTSTI> ended up 0.3 percent after a 0.2 percent loss on Tuesday, with United Overseas Bank and DBS Group , Southeast Asia's biggest bank, each gaining more than two percent.

Among decliners in the region, Malaysia's index <.KLSE> and the Philippine index <.PSI> each dropped 0.8 percent after rising in the last three sessions. Malaysia's Tenaga Nasional fell 1.95 percent, while Metrobank in Manila lost 5.4 percent.

DJI Daily: in Slow motion

Nothing much changes on the immediate technical landscape as market was moving in slow manner. We continue to look for the upside resistance at 9000-9200. To the downside, support is looking at 8200.

KLSE Daily: due for Consolidation

Market looks is entering to consolidation phase after the recent rally. To the upside, resistance is at 1072-1080. To the downside, support is adjusted to 1050-1035.

FKLI Daily: in Consolidation phase

Bulls took a breathe following market violated the immediate support at 1057. Nevertheless, the overall technical landscape remains in positive mode. As for now, we are looking for the immediate upside resistance at 1075 followed by 1080-1090. While, immediate downside support is pegged at 1040-1030.

FCPO Daily: Head n Shoulder formed

Head and Shoulder pattern had formed following another day of weak closing. Thus, market is likely to move sideways to lower in near term. As for now, we are looking for the immediate upside resistance at 2651. To the downside, support is pegged at 2530-2500 followed by 2490-2480.

Trader's Comment: Palm oil futures ended easier after a tight range movement on thin volume.

Palm oil futures ended easier after a tight range movement on thin volume. Benchmark Aug had been hovering between 2606-2574 level through out most of the sessions after it opened almost unchanged at 2601. Some late intra day liquidation saw prices slid further to 2565 but was pushed up into earlier range again and settled RM23 lower at 2575. Market were somehow uncertain as players cautiously looking for any fresh leads especially on any further clues of end stock level, while waiting for the MPOB supply & demand data which will be release by next Wednesday. External market showed some weakness today as both eCBOT soy oil and Dalian palm edged lower. Total daily volume stood at 9830 contracts changed hands.

Breaking News-RTRS-U.S. 2009/10 soy crop to rise sharply-Oil World

HAMBURG, June 2 (Reuters) - The U.S. is likely to harvest 88.5 million tonnes or 3.25 billion bushels of soybeans in 2009/2010 (Sept/Aug), up from 80.54 million in 2008/09 as farmers expand plantings, analysts Oil World said on Tuesday.

Breaking News-RTRS-UPDATE 1-China seen selling small amount of soy reserves

BEIJING, June 2 (Reuters) - China's state grains agency Sinograin is likely to release a small amount of its imported soybean reserves under a rotation programme to profit from rising soybean prices, dealers said on Tuesday.
Dealers were not clear on the amount but said some port warehouses holding reserves of imported soybeans planned to release a small volume because the cost of imported soybeans was expected to pick up this month after a price rise on the Chicago Board of Trade

Trader's Highlight

DJI-NEW YORK, June 2 (Reuters) - U.S. stocks rose for a fourth straight day on Tuesday as an upbeat report on home sales bolstered hopes for an economic recovery as well as shares in construction companies.

But a sell-off in financials on worries about the dilutive impact of recent stock offerings limited a broader advance. An index of pending sales of previously owned U.S. homes shot up 6.7 percent in April, the biggest monthly gain in 7-1/2 years, according to the National Association of Realtors.

The Dow Jones industrial average <.DJI> added 19.43 points, or 0.22 percent, to 8,740.87. The Standard & Poor's 500 Index <.SPX> gained 1.87 points, or 0.20 percent, to 944.74. The Nasdaq Composite Index <.IXIC> rose 8.12 points, or 0.44 percent, to 1,836.80.

NYMEX-NEW YORK, June 2 (Reuters) - U.S. crude oil futures fell further in post-settlement trading on Tuesday after the American Petroleum Institute's inventory data showed that domestic crude stocks fell less than expected last week.

On the New York Mercantile Exchange at 5:05 p.m. EDT (2105 GMT), July crude was down 35 cents, or 0.51 percent, at $68.23. It earlier settled down 3 cents, or 0.04 percent, at $68.55, trading from $67.50 to $69.05, the highest intraday since prices hit $70.46 on Nov. 5.

CBOT-SOYBEANS - July down 9-1/2 cents at $12.09. Profit-taking after the surge on Monday to new eight-month high. USDA pegged U.S. soy seedings near low end of trade estimates but there is plenty of time to sow the 2009 crop.

CBOT-SOYOIL - July up 0.05 cent at 40.50 cents per lb. Turned firm following late upturn in crude oil and on light fund buying.

FCPO-JAKARTA, June 2 (Reuters) - Malaysian palm oil futures dropped 1 percent on Tuesday, easing from a two-week closing high, amid profit-taking as a retreat in crude oil dented market sentiment, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange settled down 27 ringgit to 2,598 ringgit ($745.05) per tonne, after going as high as 2,651 ringgit. Overall volume was 9,386 lots of 25 tonnes each, less than the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, June 2 (Reuters) - Shares in Singapore and Thailand
fell on Tuesday, snapping a 2-day rally as investors took profits from soaring commodity stocks and other index heavyweights late in the trading session.

Stock markets elsewhere in Southeast Asia ended mixed as demand for shares faded along with easing oil prices, analysts said.

Singapore's Straits Times Index <.FTSTI> edged down 0.2 percent after surging to a fresh 8-month high in early trade. Developer CapitaLand slid 0.5 percent after a 5.5 percent rise on Monday.

Palm plantation firm Wilmar International fell 3.6 percent on easing Malaysian palm oil futures and a retreating crude oil price.

Malaysia's index <.KLSE> eked out a slim 0.2 percent gain to near a 9-month high. Maybank rose 3.8 percent, building on a 5 percent gain on Monday, while Public Bank
advanced 0.6 percent.

DJI Daily: inching up slowly

Market crawled up slowly after escape from its range bound territory. We continue to look for the upside resistance at 9000-9200. To the downside, support is looking at 8200.

KLSE Daily: still strong

we continue to look for the upside resistance at 1072-1080. To the downside, support is adjusted to 1050.

FKLI Daily: remains Bullish

Bulls retreated after hit another fresh high. However, overall daily technical landscape remains bullish. We continue to look for the immediate upside resistance at 1080-1090. While, immediate downside support is pegged at 1057 followed by 1040-1030.

FCPO Daily: Potential of head n shoulder formation

Market close in negative territory after failed to defend at 2600 mark. This had chart in a potential of head and shoulder formation if market continue to lose ground. As for now, we are looking for the immediate upside resistance at 2651-2665 followed by . To the downside, support is pegged at 2586-2585 (gap left over since 1/6/2009) followed by 2530-2500.

Trader's Comment: Palm oil futures ended lower after a choppy trading.

Palm oil futures ended lower after a choppy trading. Benchmark Aug09 initially fell to the morning low of 2603 after opened RM13 higher at 2638 but was quick to bounce back again and managed to close at 2640 before morning break. However, it immediately gapped down again when second session resumed trading and began to hover between 2619-2586 level before it finally settled RM27 lower at 2598. External markets were rather mix today as eCBOT soy oil inched lower while Dalian palm ended slightly higher. Traders were still cautiously waiting for any fresh clues on the end May stock level, even though the USDA attache in KL had highlighted in their report, stating that a small increase in CPO output could not offset the sharp reduction in carry-in stocks and resulted in lower level of stock.

Breaking News-RTRS-UPDATE 1-Chinese buyers wash out 3 U.S. soy cargoes-traders

SINGAPORE/BEIJING, June 1 (Reuters) - Chinese soybean importers have agreed with suppliers to scrap deals for two to three 60,000-tonne U.S. cargoes in the past week as prices rally and inventories pile up, two traders said on Monday.
Two of the estimated three cargoes due to have been shipped from New Orleans have instead been resold on the domestic U.S. market, where CBOT soybean futures rose to an eight-month top last week.

Trader's Highlight

DJI-NEW YORK, June 1 (Reuters) - U.S. stocks rose on Monday, sending the S&P 500 to its highest close in seven months, as reassuring economic data reinforced hopes that demand will stabilize, while General Motors' long-expected bankruptcy filing ended uncertainty about the automaker's fate.

Data showing that the U.S. manufacturing sector contracted in May at a slower rate than expected fueled hopes the U.S. recession that began in December 2007 is moderating.

Investors were also encouraged by signs of manufacturing stabilization from China, with demand from emerging markets for commodities and other resources seen leading a revival of global growth.

The Dow Jones industrial average <.DJI> shot up 221.11 points, or 2.60 percent, to 8,721.44. The Standard & Poor's 500 Index <.SPX> gained 23.73 points, or 2.58 percent, to 942.87. The Nasdaq Composite Index <.IXIC> jumped 54.35 points, or 3.06 percent, to 1,828.68.

NYMEX-NEW YORK, June 1 (Reuters) - U.S. crude futures settled at a near seven-month high on Monday as upbeat economic reports lifted global stocks and Wall Street while a weakened dollar attracted investors to oil and other commodities.

"The strength of the stock market and the weakness of the dollar are combining to support crude futures.

On the New York Mercantile Exchange, July crude settled up $2.27, or 3.42 percent, at $68.58 a barrel, the highest settlement since Nov. 4's $70.53. It traded from $66.23 to $68.68, the highest intraday price since $70.46 on Nov. 5.

CBOT-SOYBEANS - July up 34-1/2 cents per bushel at $12.18-1/2.

Rallies to eight-month high on shrinking soy supplies, slow plantings, falling dollar, gains in equities and higher crude oil.

CBOT-SOYOIL - July up 1.40 cents per lb at 40.45. Support from stronger crude oil and soybeans, falling dollar as equities rise.

FCPO-JAKARTA, June 1 (Reuters) - Malaysian palm oil futures rose 2.5 percent to their highest close in nearly two weeks, supported by a rally in crude oil and rival soybean prices, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange settled up 65 ringgit to 2,625 ringgit ($756.48) per tonne, the highest closing level since May 19. Overall volume was 12,801 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 1 (Reuters) - Singapore shares <.FTSTI> surged
more than 2 percent to close near an 8-month high on Monday, leading rallies on other Southeast Asian stock markets propelled by higher oil prices, analysts said.

Malaysia's index <.KLSE> rose 1.7 percent to close near a 9-month high, with Maybank up 5 percent and mobile phone company Axiata Group 4.4 percent higher.

Singapore's Straits Times Index <.FTSTI> rose 2.2 percent to its highest since October 2, with developer CapitaLand surging 5.5 percent and lender DBS Group Holding climbing 2.5 percent.

DJI Daily: Ends of Conslidation

Market eked out from the range trading show that consolidation phase has come to the end. We are now looking for the upside resistance at 9000-9200. To the downside, support is looking at 8200.

KLSE Daily: Bulls Waltz higher

Bull was enjoying to Waltz higher. Currently, we continue to look for the upside resistance at 1070-1080. To the downside, support is adjusted to 1050.

FKLI Daily: Bulls run likely to continue

Bulls run looks likely to continue following a fresh high was achieved. As for now, we are eyeing for the upside resistance at 1080-1090. While, downside support is pegged at 1060-1050.