KLSE in lacklustre trade

Nothing much changes on the immediate daily technical landscape as market traded in range bound mode. Market tested the year low at 1064 in intra-day basis but not closing. Thus, we continue to look for the underline support at 1064.11-1049.88. For upside, resistance remained at 1090.

FCPO remained its yoyo pattern

Market swung up and down after prices failed to sustain at 2500 mark. We look for the downside support at 2406-2351. Upside resistance is at 2600.

FKLI in range trading

Market continue its range trading between 1045.5-1083 in near term.

KLSE in rangy mode

KLSE is in rangy mode and defended at the 1064.85 (year low). Immediate upside resistance is at 1080-1083.

Breaking News-RTRS-Latin American palm oil output rising-Oilworld

HAMBURG, Aug 26 (Reuters) - Central and South American palm oil production is rising rapidly but high domestic consumption is curbing exports, Hamburg-based oilseeds analysts Oil World said on Tuesday.

Trader's Highlight

DJI-NEW YORK, Aug 26 (Reuters) - The Dow and S&P 500 rose on Tuesday as hurricane fears lifted oil prices and boosted energy shares, blunting the effect of a report that showed a growing number of problem U.S. banks.

The Dow Jones industrial average <.DJI> was up 26.62 points, or 0.23 percent, at 11,412.87. The Standard & Poor's 500 Index <.SPX> was up 4.66 points, or 0.37 percent, at 1,271.50. The Nasdaq Composite Index <.IXIC> was down 3.62 points, or 0.15 percent, at 2,361.97.

NYMEX-NEW YORK, Aug 26 (Reuters) - U.S. crude oil futures ended higher for a second day in a row on Tuesday as oil companies began preparing against Hurricane Gustav, which is forecast to enter the U.S. Gulf of Mexico as a major storm this weekend.

On the New York Mercantile Exchange, October crude settled up $1.16, or 1.01 percent, at $116.27 per barrel, trading from $112.36 to $117.89, above the 20-day moving average of $117.46.

CBOT-SOYBEANS - September down 1-3/4 cents at $13.37-1/2 per bushel, November down 2-1/2 at $13.44-1/2.Strong dollar weighs along with declines in Asian vegoil markets. Market underpinned by dry U.S. crop weather, declining crop ratings and upturn in crude oil.

SOYOIL - September down 0.60 cent at 53.92 cents per lb.Pressured by strong dollar and drop in Malaysian palm oil.But upturn in crude oil lending support.

USD-NEW YORK, Aug 26 (Reuters) - The dollar climbed to six-month highs against the euro on Tuesday, boosted by a jump in U.S. consumer confidence and expectations of euro-zone interest rate cuts as investors braced for a possible recession in the region.

FCPO-BANGKOK, Aug 26 (Reuters) - Malaysian crude palm oil futures fell 7.3 percent to a one-week low on Tuesday as fears of defaults by Chinese buyers amid rising supply encouraged players to sell contracts heavily, traders said.

The benchmark November palm oil contract fell 191 ringgit, or 7.3 percent, to finish at 2,409 ringgit ($710) per tonne, the lowest since Aug. 19.

REGIONAL EQUITIES-SINGAPORE, Aug 26 (Reuters) while fears of slowing economic growth continued to plague most other Southeast Asian markets.Singapore <.FTSTI> gave up 1 percent. Indonesia <.JKSE> slid 0.9 percent, and Malaysia <.KLSE> dropped 0.8 percent.

The Philippine index <.PSI> shed 0.6 percent but Vietnam<.VNI> defied the trend to rise a fourth straight day, by 2.5 percent.

DJI moves in sideway

DJI remained in sideways move. We continue to look for the support at 11221-11210. For upside, resistance is at 11690-11700.

Trader's Comment: CPO futures sunk further as influence by external weak market.

Soyoil in e-CBOT tumbled and loss 170 points which Dalian palm and soyoil both closed limit down. Re-emerge talks that China may cut import taxes for cooking oil prompted the selling in Dalian commodity exchange. Generally market sentiment still weak as players concerns over higher production and to be peak in October. Traditionally, weather in USA also ideal for the crop. Technical selling resumed after last week's rebound from 2351 to 2753 and unable to sustain. This had given the bear to reclaim the selling.

FCPO erased all its earlier gains

FCPO surrendered all its earlier gains with a long black candle printed. Looks may want to test the recent low at 2351. For upside, resistance is at 2675-2688.

FKLI looking for firm support at 1045.5-1048

Underline support at 1045.5-1048 was holding firm and looks may continue to cushion the market downside momentum. For upside, resistance is at 1080-1083.

KLSE managed to defend from lower end?

The overall daily technical landscape remained bearish and market is trying to defend. We look for the underline support at 1064.58-1049.88. For upside, resistance is at 1090.

Breaking News-RTRS-Indonesian palm exporters re-negotiating contracts after market fall, defaults minimal

JAKARTA, Aug 26 (Reuters) - Indonesian palm oil exporters are re-negotiating prices of export contracts signed before the sharp price fall and large-scale defaults are unlikely, the executive chairman of the country's leading palm oil industry body said on Tuesday.

Derom Bangun of the Indonesian Palm Oil Producers' Association said the country's overall palm oil exports were likely to rise by 10 percent in 2008, from last year's 13 million tonnes, despite the volatility in the market.

"Biodiesel producers are building up stocks now, after the market crash. If crude oil rises a bit more, biodiesel producers will find it profitable to resume production," Bangun told Reuters in an interview.

Breaking News-DJ INTERVIEW: CPO Prices MYR2,400-MYR2,800 Sep-Dec '08 -Exec

KUALA LUMPUR (Dow Jones)--Crude palm oil prices will likely hover between MYR2,400 and MYR2,800 a metric ton over the next four months as large inventories are currently weighing on the market, a senior industry executive said Monday.

FCPO losing ground as failed to sustain at higher end

Market is losing ground after prices failed to sustain at higher end. Prices gap down and ended weak. Market may continue to look for a range to consolidate in near term. We look for the upside resistance at 2675-2688 (gap left over yesterday). For downside, support is pegged at 2513.

FKLI extended its consolidation phase

Market is facing overhead resistance at 1089.5-1083 and support is pegged at 1048-1046.5. Consolidation phase likely to continue in near term.

KLSE in range bound mode

Market may continue to trade in range between 1096 to 1064.5 in near term.

Breaking News-RTRS-Interview-India seeks 900,000 T vegoils in Sept, Oct

* India may import 900,000 tonnes of vegoils in Sept, Oct

* India soy output may exceed 10 mln T if monsoon revives

* Country may re-impose import tax on vegoils from mid-Oct

RTRS-M'sia palm could slide to 2,200 ringgit -Mistry

KUALA LUMPUR, Aug 25 (Reuters) - Malaysian crude palm oil futures could slide as far as 2,200 ringgit per tonne before triggering fresh demand, as ideal weather extends the main growing season, a leading industry analyst said on Monday

But Dorab Mistry cautioned that the forecast only applied if struggling oil prices stabilise around $100 a barrel.

Breaking News-DJ INTERVIEW:Pakistan Wants More Malaysian Crude Palm Oil -Exec

KUALA LUMPUR (Dow Jones)--Pakistan is seeking a larger supply of palm oil in crude form from Malaysia instead of refined palm olein due to the creation of fresh domestic refining capacity, Karachi-based Inam Bari, director of Dalda Foods, said Monday.

Breaking News-RTRS-Interview-KL Kepong to plant 10,000 ha of oil palm yearly in Indonesia

-KL Kepong to plant 10,000 ha of oil palm yearly in Indonesia
-Invested 200 mln ringgit in biofuel softening plant
-Defers $300 mln bond issue due to bad market conditions