Trader's Comment: Positive external factors led CPO futures to end generally higher.

Positive external factors led CPO futures to end generally higher. Higher soy prices in eCBOT couple with steady Dalian palm had contributed some supportive tone for today’s market. Initially it hit the intra day low at 1836 after opened RM20 higher at 1855. Thereafter, Benchmark may09 started to trade steadily through out most of the sessions. It hit intra day high of 1892 in the afternoon session before it hovered between 1885-1860 level and later settled RM45 higher at 1880. Generally, the “bull” was in upper hand today due to lack of aggressive selling. With last week good export numbers, market players believe that February inventory are likely to drawn down due to expecting lower production. The strong rebound in regional equity market also provided some friendly sentiment to CPO market.

Breaking News-RTRS-INTERVIEW-Malaysia port sees delay in key palm oil storage tank

KOTA KINABALU, Malaysia Feb 23 (Reuters) - A port in Malaysia's eastern Sabah state will see delays in building a 600,000 tonne palm oil storage tank till year-end while the country's top palm growing region suffers from supply bottlenecks, a government official said on Monday.

Breaking News-RTRS-UPDATE 2-Argentine farmers call anti-government strike

BUENOS AIRES, Feb 19 (Reuters) - Argentine farmers will halt sales of grains and livestock in a renewed protest against a tax on soy exports and other government agricultural policies, farm leaders said on Thursday.

Trader's Highlight

DJI-NEW YORK, Feb 20 (Reuters) - U.S. stocks tumbled on Friday, with the Dow industrials ending at a 6-1/2-year low, on fears the government may be forced to nationalize some big banks.

Uncertainty about how Washington will rescue beleaguered banks persisted even as the White House issued its most direct statement yet on banks, saying it supported a privately held banking system.

The S&P 500 had plunged close to a 12-year low before the White House statement.

Citigroup and Bank of America , which were buffeted by rumors that they were candidates for nationalization, finished down 22.3 percent and 3.6 percent,
respectively. They had been down more than 35 percent before the White
House comments.

The Dow Jones industrial average <.DJI> fell 100.28 points, or 1.34 percent, to close at 7,365.67. The Standard & Poor's 500 Index <.SPX> ended down 8.89 points, or 1.14 percent, at 770.05. The Nasdaq Composite Index <.IXIC> dipped 1.59 points, or 0.11 percent, to 1,441.23.

NYMEX-NEW YORK, Feb 20 (Reuters) - U.S. crude oil futures fell on Friday, after shooting up 14 percent on Thursday, on persistent demand concerns amid a weak economy and as traders liquidated positions on the front-month March contract, which expired at the close.

On the New York Mercantile Exchange, March crude expired and settled down 54 cents, or 1.37 percent, at $38.94 a barrel, trading from $36.91 to $39.50.
April crude ended down 15 cents, or 0.37 percent, at $40.03, trading from $37.54 to $40.13.

CBOT-SOYBEANS - March down 22 at $8.62-1/2 per bushel.

Economic worries weigh, pushing soy to two-month low. Softening Brazilian basis on harvest pressure coupled with talk that China may have canceled 4 to 6 cargoes of U.S. soy, rolling them to Brazil, weigh on CBOT prices. Late short-covering and weakening dollar helped soy close above the day's lows.

Rains in Argentina also to weigh and market shrugging off news Argentine farmers planning to strike.

CBOT-SOYOIL - March down 0.20 cent per lb to 30.22 cents. Declining soy, crude and stock markets weighing on soyoil.

FCPO-JAKARTA, Feb 20 (Reuters) - Malaysian palm futures fell to a 2-week low on Friday, extending a five-day losing streak, on fears over weak demand and supportive weather condition in rival soy producing country Argentina, traders said.

The benchmark May contract fell 25 ringgit, or 1.34 percent, to 1,835 ringgit ($499) per tonne, the lowest finish since Feb. 4, having gone up as high as 1,889 ringgit early.

Other traded contracts were mixed. Overall volume was at 12,374 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Feb 20 (Reuters) - Southeast Asian stocks fell on
Friday in markets dogged by global economic fears, with Singapore hitting a three-month low and Indonesia a two-month low, led by financials such as Singapore's UOB and Indonesia's Bank Rakyat.

Malaysian and Thai stocks hovered at two-week lows, with Malaysia <.KLSE> off 1.1 percent, pulled down by a 5.4 percent drop in lender Malayan Banking and Thailand <.SETI> down 1.6 percent, with Bangkok Bank 2 percent lower.
Elsewhere, the Philippines <.PSI> lost 0.9 percent and Vietnam <.VNI> fell 0.9 percent to its lowest since August 2005.

DJI Weekly: More downside room

More downside room to comes as market violated the recent low at 7449. We are now looking for downside support at 7197 (low since 13/10/2002) followed by 6971 (2/11/1997). For upside, resistance is at 7900-8000.

KLSE Weekly: Limited upside

Upside looks limited following a black candle printed for the week. We are now looking for the upside resistance at 910-920. Downside support is pegged at 867-878

FKLI Weekly: Weakening

Market dampened with a long black candle closing for the week. Market looks tiredness after few weeks effort tried hard to sustain above 900 mark. As for now, we look at the resistance at 925-928. While, downside support is at 860-865.

FCPO Weekly: Market facing tough resistance at 2058

Market tested 2000 mark but failed to sustain. Market looks may enter to its consolidation phase in near term with upside resistance at 2058. For downside, support is remained at 1740-1720.

Trader's Comment: Palm oil futures gave back all its earlier gains to end lower.

Palm oil futures gave back all its earlier gains to end lower after a tight range trading. The emerged of long liquidation activities in late trading sent Benchmark May09 to tumble to intra day low at 1832. It initially opened RM20 higher at 1880, following the release of better than expected 1-20 export data by private cargo surveyors. It was holding steadily and hovering between the narrow range of 1870-1885 through out most of the trading session. However lack of follow through buying coupled with long liquidation ahead of weekend saw Benchmark may09 prices tumbled to 1832 and settled RM25 lower at 1835. Weather forecast that there will be showers in Argentina this weekend prompted some speculative selling activities. Bearish sentiment in regional equity market has some influence on BMD as well.

Palm Oil Export 2008 vs 2007

Exports for the year 2008 have improved as compared to year 2007. Export for the year 2007 is at 13,744,752 mt and increased to 15,823,233 mt in year 2008, up 12%.

*source: MPOB

CPO Production 2008 vs 2007

Production for the year 2008 is seen to have significantly increased from year 2007. The total production for the year 2008 is 17,734,716 mt compare 15,823,233 mt in year 2007, up 12%.

*source: MPOB

RTRS-ANALYSIS-Malaysia stimulus seen too little, too late

KUALA LUMPUR, Feb 20 (Reuters) - Malaysia's attempts to boost its faltering economy will likely fail as the drag of falling demand for its main exports of electronics, commodities and oil is too large for any domestic expansion programme to offset.
"I do not think we should expect much out of this (second) package," said Mohamed Ariff, executive director of the Malaysian Institute of Economic Research (MIER), an influential think-tank.
The government has not signaled how big the second package will be, saying only it will be larger than the first, but analysts predict it will be worth around 7 billion-10 billion ringgit ($1.92 billion-$2.74 billion).

Breaking News-RTRS-Indonesia Jan palm stocks down 14 pct from Dec - industry

JAKARTA, Feb 19 (Reuters) - Indonesia's crude palm oil stocks at the end of January eased 14 percent from the previous month as output fell, an industry official said on Thursday.
Stocks for the world's top producer of the commodity dropped to 1.8 million tonnes in January, from 2.1 million tonnes in December, said Sahat Sinaga, executive director of Indonesian vegetable oil federation, GIMNI.

Breaking News-RTRS-Chinese soy buyers may cancel US soy on poor margins

BEIJING, Feb 19 (Reuters) - Some buyers in China, the world's top soybean importer, may cancel some U.S. soy imports, including cargoes that are already afloat, after a sharp fall in soymeal prices wiped out crushing margins, traders said on Thursday.

Breaking News-RTRS-Argentine farmers call anti-government strike

BUENOS AIRES, Feb 19 (Reuters) - Argentine farmers said on Thursday they will hold a commercial strike beginning Friday against government agricultural policies.
Farmers will halt sales of grains and some other agricultural products starting Friday until Tuesday, farm leaders said in a press conference.

Trader's Highlight

DJI-NEW YORK, Feb 19 (Reuters) - U.S. stocks fell on Thursday, with the Dow setting a new bear market low, as signs of a worsening U.S. economy unsettled investors while concerns over global stimulus spending sent government debt prices lower.

The number of U.S. workers drawing unemployment aid jumped to a record high of nearly 5 million and a surprisingly sharp drop in manufacturing in the mid-Atlantic states reinforced fears that the deepening slump would hurt corporate profits.

The Dow Jones industrial average <.DJI> slid to its lowest level in six years, sliding past the bear market low of Nov. 21. Technology companies led the Dow lower, but Bank of America and Citigroup again grabbed headlines with sharp declines in thin, but choppy trading volume.

The Dow Jones industrial average <.DJI> closed down 89.68 points, or 1.19 percent, at 7,465.95. The Standard & Poor's 500 Index <.SPX> fell 9.48 points, or 1.20 percent, at 778.94. The Nasdaq Composite Index <.IXIC> shed 25.15 points, or 1.71 percent, at 1,442.82.

NYMEX-NEW YORK, Feb 19 (Reuters) - U.S. crude oil futures surged more than 14 percent on Thursday, lifted by a surprise drawdown in domestic crude stocks and short-covering ahead of the front-month contract's expiration on Friday.

On the New York Mercantile Exchange, March crude settled up $4.86, or 14.04 percent, at $39.48 a barrel, trading from $34.59 to $39.85.

CBOT-SOYBEANS - March down 3 cents to $8.84-1/2 a bushel. Ended mixed with nearby contracts down and deferred months higher on unwinding of bull-spreads. Rumor China and/or EU canceling soy contracts also weighed on nearby month.

CBOT-SOYOIL - March unchanged at 30.42 cents a lb. Following late mixed trend in soy.

FCPO-JAKARTA, Feb 18 (Reuters) - Malaysian palm futures closed lower for the fourth day in a row on Thursday, on fears it may track the decline in soybean prices, traders said.

The benchmark May contract fell 15 ringgit, or 0.8 percent, to 1,860 ringgit ($509) per tonne, having fallen as low as 1,830 ringgit, a level not seen since February 6.

Other traded contracts were mixed. The overall volume was 22,439 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Feb 19 (Reuters) - Southeast Asian stocks were mixed
on Thursday, with Singapore touching a near 3-month low on broad selling of big caps such as CapitaLand and SingTel while Malaysia rose after three days of falls, with MayBank among the advancers.

Elsewhere in the region, the Thai stock index <.SETI> rose for a second day, adding 0.5 percent, Indonesia's index <.JKSE> fell 0.5 percent, the Philippines gained 0.4 percent and Vietnam <.VNI> inched down 0.09 percent.

DJI Daily: Hits 6-year low

Market failed to hold ground and violated the underlined support at 7449 to hit 6-year low. Market likely to continue its downside move with support is looking at 7197 (low since 31/10/2002). For upside, resistance is at 7800-7900.

KLSE Daily: Remain in sideways..

Market tested 900 mark in intra-day basis but not at closing. We maintain resistance at 900-905, while support is pegged at 893-891 followed by 884-880.

FKLI Daily: 900 mark can come?

Market tried hard to challenge the 900 mark but it looks tough. We continue to look for the support at 880-878 (gap left over on 6/2/2009) followed by 860-865. While, resistance maintain at 900-905.

FCPO Daily: Directionless...

Market close in negative territory after covered the full upside gap at 1887-1892. Overall technical outlook remained cloudy and directionless. Thus, consolidation phase likely to continue in near term. We are now looking for the resistance at 1920-1950. Support is maintain at 1800-1790 followed by 1740-1720.