Trader's Comment: Palm oil futures extended its overnight gains on the back of strong external markets.

Palm oil futures extended its overnight gains after prices gapped up and stayed higher through out the day on the back of strong external markets. Benchmark Oct09 immediately gapped up RM42 to open at 2165 and thereafter hovering between 2175-2144 through out most of the sessions. Buying support was generally due to the strong external markets in the Asian time trading as NYMEX crude oil and Dalian palm had continued to edge higher through out the day while eCBOT soy oil also recovered from its earlier losses and gained higher. Benchmark Oct09 surged further to hit intra day high of 2184 in the second session but some intra-day profit taking activities saw prices retreated back into earlier range again and settled RM39 higher at 2162 with total volume stood at 13,460 contracts changed hands.

Trader's Highlight

DJI-NEW YORK, July 20 (Reuters) - U.S. stocks jumped on Monday, driving the S&P 500 to an eight-month closing high, after CIT Group Inc was thrown a lifeline to avoid bankruptcy, and investors bet corporate America would log another strong set of earnings this week.

CIT , a lender to nearly 1 million small- and mid-sized U.S. companies, reached a deal with bondholders for $3 billion in emergency financing, a source familiar with the situation said. CIT's shares soared 78.6 percent to $1.25.

Investors were encouraged by signs that the CIT rescue was a private-sector measure instead of a government bailout.

The Dow Jones industrial average <.DJI> shot up 104.21 points, or 1.19 percent, to 8,848.15. The Standard & Poor's 500 Index <.SPX> gained 10.75 points, or 1.14 percent, to 951.13. The Nasdaq Composite Index <.IXIC> rose 22.68 points, or 1.20 percent, to 1,909.29.

NYMEX-NEW YORK, July 20 (Reuters) - U.S. crude oil futures ended higher on Monday after seesawing, extending last week's strong gains as a weak dollar and optimism reflected in stronger equities markets kept oil moving up.

On the New York Mercantile Exchange, August crude rose 42 cents, or 0.66 percent, to settle at $63.98 a barrel, trading from $63.19 to $64.90.

CBOT-SOYBEANS - August up 23-1/2 cents at $10.33 a bushel

Tight soy stocks, gains in equities and weak dollar, which makes U.S. commodities a better buy for importers, combine to lift soy futures. Prices continue to rebound from last week's sell-off.

CBOT-SOYOIL - August up 0.52 cent at 35.34 cents per lb. Following soybeans. Strength in equities markets combined with weak dollar also lifting market.

FCPO-KUALA LUMPUR, July 20 (Reuters) - Malaysian crude palm oil futures rose 1.8 percent on Monday, extending the previous week's gains as Asian festival demand strengthened and other vegetable oil markets gained.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange settled up 39 ringgit to 2,162 ringgit ($610.9) per tonne. Overall volume stood at 13,460 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, July 20 (Reuters) - Stock markets in Singapore and
Malaysia extended their gains into a fifth day on Monday, leading most other Southeast Asian bourses higher, with optimism over quarterly earnings spurring demand for financials and big caps.

Singapore <.FTSTI> rose 1.04 percent to its highest since Sept. 25, with developer CapitaLand up 2.1 percent, while Malaysia <.KLSE> added 1.6 percent to its highest since Aug. 5, with power firm Tenaga Nasional up 3.1 percent.

Elsewhere, the Philippine index <.PSI> rose 1.3 percent on resuming trade after a typhoon caused the cancellation of Friday's session, while Vietnam <.VNI> bucked the trend, ending down 3.7 percent.

DJI Daily: 8800 tested

Market tested the immediate resistance at 8800 and looks may want to challenge 9000 mark. To the downside, support is maintain at 8000. We are still waiting for a significant breakout either way of 9000 level or 8000 level to identify a more clearer direction in near term.

KLSE Daily: still more room to the upside

Bull run looks likely to extend in near term as overall technical landscape maintain in bullish posture. To the upside, resistance is now at 1150-1165 followed by 1180-1190. While, downside support is pegged at 1100-1095.

FKLI Daily: Non-stop rallied

A non-stop bull rallied violated the immediate resistance at 1140 had further beautified the overall bullish picture. To the upside, immediate resistance is now looking at 1150-1170 followed by 1200. While, downside support is pegged at 1110-1115.

FCPO Daily: Improved

Immediate technical outlook has been improved following market extended gains. Nevertheless, more effort is still needed to escape from the current technical correction phase. As for now, we are now looking for the immediate downside support at 2144-2123 (gap left over on 20/7/2009). To the upside, immediate resistance is at 2200-2250.

Breaking News-RTRS-POLL-Asian palm oil prices seen lower in 2009, firming in 2010

KUALA LUMPUR, July 17 (Reuters) - Average palm oil prices
will fall 23 percent this year and only edge higher in 2010 as
better demand prospects give way to concerns over a build-up in
global vegetable oil supply, a Reuters poll showed on Friday.
Malaysian palm oil is forecast to average 2,200 ringgit a
tonne in 2009, 8.9 percent higher than 2,020 ringgit by
Thursday's close, as analysts pointed to an inflow of rival
soyoil from the upcoming U.S. soy harvest and higher palm oil
stocks curbing any gains.
The poll of 17 analysts covering top palm oil producers
Indonesia and Malaysia put 2010 prices at 2,275 ringgit, up 3.4
percent from this year's forecast, based on a more convincing
recovery in the global economy even though a better supply
scenario will dominate.

Trader's Highlight

DJI-NEW YORK, July 17 (Reuters) - U.S. stocks closed out their best week in four months on Friday on a flat note as strong earnings from IBM softened the blow of disappointing results from General Electric Co .

The Dow Jones industrial average <.DJI> gained 32.12 points, or 0.37 percent, to 8,743.94. But the Standard & Poor's 500 Index <.SPX> dipped just 0.36 of a point, or 0.04 percent, to 940.38. And the Nasdaq Composite Index <.IXIC> added 1.58 points, or 0.08 percent, to 1,886.61.

NYMEX-NEW YORK, July 17 (Reuters) - U.S. crude oil futures ended higher on Friday, sparked by better-than-expected housing starts data, with more lift provided by renewed protests in Iran and a tropical wave in the Atlantic.

On the New York Mercantile Exchange, August crude rose $1.54, or 2.48 percent, to settle at $63.56 a barrel, trading from $61.04 to $63.99.

CBOT-SOYBEANS - CBOT August up 33-1/2 cents per bushel at $10.09-1/2.

Fund buying and short-covering following the plunge on Thursday to a 3-1/2-month low
on news China to sell soy from state grain reserves next week. Good U.S. crop weather limiting gains.

Average of analysts' estimates peg end 2009 soy price slightly below current levels.

CBOT-SOYOIL - CBOT August up 1.02 cents per lb at 34.82.

Short-covering bounce after the drop of prices on Thursday with additional support from higher crude oil.

FCPO-JAKARTA, July 17 (Reuters) - Malaysian palm oil futures jumped 5.1 percent on Friday as investors bet on high export figures due out on Monday, with a rise in rival soybean oil price gave a further boost, traders said.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange rose 103 ringgit to finish at the day's high of 2,123 ringgit ($595.85) a tonne, a level not seen since July 6. Overall volume was 15,575 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, July 17 (Reuters) - Most major Southeast Asian stock
markets rose on Friday, with Singapore closing at the day's high as developers extended gains and late buying of banks and property shares boosting Bangkok.

The Indonesian market fell after bombs ripped through two luxury hotels in Jakarta but ended down just 0.6 percent.

Singapore's index <.FTSTI> climbed 1.3 percent to 2,430.96, its highest level of the day, with CapitaLand adding 3 percent and City Developments up 4.5 percent as data showing strong home sales for June bolstered sentiment.

Malaysia <.KLSE> rose for a fourth day, adding 1.1 percent, with Bumiputra Commerce up 2.6 percent and national power company Tenaga Nasional and lender Maybank each up 2.5 percent.

Vietnam <.VNI> dropped 1.1 percent, with Vietnam Dairy down 5 percent and VietinBank falling another 5 percent after its poor debut on Thursday.

The Philippine Stock Exchange suspended its regular half-day trading session due to typhoon Molave, which dumped rain on the capital and the north of the country.

DJI Weekly: Sideways

We are still waiting for a significant breakout either to the upside of 8800-9000 or downside support at 8000 for a more clearer direction in near term.

Trader's Comment: Palm oil futures recouped yesterday’s losses to end sharply higher.

Palm oil futures recouped yesterday’s losses to end sharply higher. Benchmark Oct09 merely hit intra day low of 2028 after opened RM15 higher at 2035 and since then began to surge steadily through out the day until it settled at the intra day high at 2123, up RM 103 with total volume stood at 15,575 contracts changed hands. Buying sentiment was strong as other vege oil markets also gained momentum and continued to be supportive. Both eCBOT soy oil and Dalian palm edged higher during Asian time trading. Pre-weekend short covering activities had also helped to further push up the price in late trading.

KLSE Weekly: Bullish

Market continue to march higher and overall technical landscape remains in bullish view. To the upside, resistance is at 1130-1140 followed by 1160-1165. While, downside support is pegged at 1095-1085 followed by 1065-1060.

FKLI Weekly: Up-trend remains intact

Bull looks enjoying to waltz higher without any sign of tiredness. Thus, we maintain bullish view towards the near term market. To the upside, immediate resistance is at 1140-1150 followed by 1170-1200. While, downside support is pegged at 1090-1080.

FCPO Weekly: Technical correction

Market rebounded and recovered to close at the weekly high had helped to cushion a little from the recent sell down. However, overall technical landscape remains in bearish atmosphere. Thus, market may due for a technical correction in near term. As for now, we are now looking for the immediate downside support at 1964. To the upside, immediate resistance is at 2150-2200 followed by 2295-2300.

Breaking News-(BN) Indonesian Rupiah Declines 0.4% on Reports of Hotel Bombing

By Lilian Karunungan
July 17 (Bloomberg) -- The Indonesian rupiah declined 0.4 percent to 10,155 per dollar on reports that two hotels were bombed in Jakarta.
The facade of the Ritz-Carlton hotel was blown off in one blast Friday morning, the Associated Press reported, citing police. Another explosion hit the Marriott hotel. An Associated Press reporter saw three injured taken away from the Ritz, the agency said.

Trader's Comment: Palm oil futures lose its grip in late trading and settled at the intra day low of 2020

Palm oil futures lose its grip in late trading and settled at the intra day low of 2020 after the earlier sideways movement and mix trading. Market was quite uncertain initially due to the “battle” between speculative buyers who believe that the uptrend is still intact and the profit takers who had started to book their profit from the 2-day rally. New Benchmark Oct09 had been hovering in a tight range between 2100-2067 through out most of the sessions. However, as external markets turned weaker in late trading, intra day liquidation began to emerge in the BMD and saw prices to slid further until closing. Both Asian time NYMEX crude oil and eCBOT soy oil had edged more than 1% lower.

Breaking News-RTRS-UPDATE 2-China to sell soy reserves, may get few buyers

BEIJING, July 16 (Reuters) - China plans sales of corn and soybeans from state reserves from next week, its first from massive purchases of 2008 crops, but high prices are likely to deter buyers in a market already flooded with imported soybeans.
Traders told Reuters the soybeans are likely to be priced at 3,750 yuan ($549) a tonne, about $40-$50 above import prices, while they said the corn sale comes too close to the start of the new harvest.

Trader's Highlight

DJI-NEW YORK, July 16 (Reuters) - U.S. stocks rallied for a fourth day on Thursday after JPMorgan's strong results fed growing optimism about the quarterly earnings season and technology shares rose in anticipation of more good news.

The Dow Jones industrial average <.DJI> rose 95.61 points, or 1.11 percent, to 8,711.82.

The Standard & Poor's 500 Index <.SPX> gained 8.06 points, or 0.86 percent, to finish at 940.74, and has climbed 7 percent for the week so far. The Nasdaq Composite Index <.IXIC> advanced 22.13 points, or 1.19 percent, to 1,885.03.

NYMEX-NEW YORK, July 16 (Reuters) - U.S. crude oil futures ended a seesaw session higher on Thursday, bouncing late with equities markets after conflicting data about economic recovery kept trading choppy.

On the New York Mercantile Exchange, August crude rose 48 cents, or 0.78 percent, to settle at $62.02 a barrel. Trading ranged from $60.29 to $62.18.

CBOT-SOYBEANS - August down 44-1/2 cents at $9.76 a bushel

Soybean futures fall to 3-1/2 month low on pressure from good crop weather in the United States and news China selling soy from reserves next week.

China confirms sales of 500,000 tonnes of soybean reserves next week, may get few buyers.

CBOT-SOYOIL - August down 0.32 cent at 33.80 cents per lb.

Spillover selling pressure from falling soybeans. Drop in crude oil also weighs on prices Overall volume was 22,903 lots of 25 tonnes each, more than double the usual 10,000 lots.

FCPO-JAKARTA, July 16 (Reuters) - Malaysian palm oil futures tumbled on Thursday as investors locked in profits after the market jumped nearly 6 percent in the previous two sessions, with weak outside markets fueling the selling mood, traders said. The benchmark October contract on Bursa Malaysia's Derivatives Exchange, the new third month contract, dropped 65 ringgit, or 3.1 percent, to 2,020 ringgit ($565.98) a tonne, after going as high as 2,100 ringgit.

REGIONAL EQUITIES-BANGKOK, July 16 (Reuters) - Major Southeast Asian stock
markets rose for the third day on Thursday, with buying of property shares pushing Singapore to its highest level in 10 months and economic optimism lifting the mood elsewhere.

Singapore <.FTSTI> gained 0.5 percent, earlier rising as much as 1.9 percent to its highest since September last year. Analysts said China's higher-than-expected economic growth and a jump in U.S. stocks in reaction to upbeat corporate results buoyed sentiment in the region.

Malaysia's index <.KLSE> added 1.1 percent, rising as much as 2.1 percent to its highest since Aug. 13, with telecommunications firm Axiata Group up 5.6 percent and Malayan Banking , the biggest lender, up 0.9 percent.

DJI Daily: May challenge 8800-9000 level

Market continue to gain ground and may want to challenge 8800-9000 level in near term. Downside support maintain at 8200.

KLSE Daily: Uptrend likely to continue

Market looks may want to challenge 1130-1140 level in near term. To the downside, support is pegged at 1095.

FKLI Daily: Bull run likely to extend

Market looks may likely to extend its bull run in near term with upside resistance at 1130-1150. Downside support is pegged at 1090.