Trader's Highlught

DJI-NEW YORK, June 26 (Reuters) - The Nasdaq rose on Friday, on strong demand for Palm's Inc's Pre smartphone, while the Dow was dragged lower by sliding oil prices and strength in some financial stocks helped cushion the S&P 500's decline.

The technology-heavy Nasdaq outperformed, helped partly by gains in Palm after it posted a narrower-than-expected loss late on Thursday and said demand was strong for its new Pre smartphone.

Weighing on sentiment, a jump in the savings rate suggested that the debt-burdened U.S. consumer may not drive the economy out of recession as fast as hoped.

The Dow Jones industrial average <.DJI> dropped 34.01 points, or 0.40 percent, to 8,438.39. The Standard & Poor's 500 Index <.SPX> fell 1.36 points, or 0.15 percent, to 918.90. But the Nasdaq Composite Index <.IXIC> gained 8.68 points, or 0.47 percent, to 1,838.22.

NYMEX-NEW YORK, June 26 (Reuters) - U.S. crude oil futures fell back on Friday as oil traders took pre-weekend profits, joining investors on Wall Street who worried that a jump in the U.S. savings rate may hamper the road to economic recovery.

On the New York Mercantile Exchange, August crude settled down $1.07, or 1.52 percent, at $69.16 a barrel, trading from $68.81 to $71.29. From a week ago, the contract was down 39 cents, or 0.56 percent.

CBOT-SOYBEANS - July up 5 cents per bushel at $12.01. November down 11 cents at $9.91.

Weak U.S. dollar and tight U.S. stocks supporting old-crop values, but gains limited by weak crude oil and pressure on November from prospects for big U.S. soy acreage this year.

CBOT-SOYOIL - July down 0.46 cent per lb at 36.08 cents Crude oil down more than $1 per barrel.

FCPO-KUALA LUMPUR, June 26 (Reuters) - Malaysian palm futures dipped 0.8 percent on Friday as some investors booked profits on a rally fuelled by expectations that India would have to import more vegetable oils as monsoon rains were below normal.

The benchmark September palm oil contract on the Bursa Malaysia Derivatives Exchange settled down 19 ringgit to 2,317 ringgit ($656.4). Overall traded volume stood at 11,629 lots at 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 26 (Reuters) - Singapore climbed near a two-week high on Friday, rising for a third day and leading most other Southeast Asian stock markets higher, with low interest rates bolstering demand for regional property shares.

Investors continued to allocate more money to stocks because of the low-rate environment and the prospect of a gradual recovery in the global economy, while energy shares rose after oil went above $71 a barrel.

Markets in the region recovered part of last week's losses, led by Manila, which gained 3.3 percent on the week, reversing from a 7.7 percent drop the week before, followed by Jakarta's 2.5 percent gain and Singapore's 2 percent.

Singapore's index <.FTSTI> ended up 0.7 percent at its highest level since June 15, with Keppel Land up 2.2 percent and City Development up 1.5 percent.

Malaysia <.KLSE> eked out a small 0.2 percent gain, with lender Maybank down 1.7 percent, while palm planter Sime Darby rose 0.7 percent.

DJI Weekly: Holding in sideways

Market has been holding in sideways manner and no showing any sign of improvement. Thus, we continue to look for the resistance at 8600-8800 followed by 9000. To the downside, support is pegged at 8000.

KLSE Weekly: Steady

A long lower shadow shows that market was well adsorb after the recent sell down. Thus, we are currently looking for the downside support at 1028 followed by 1000. While, upside resistance is stood at 1095-1100.

FKLI Weekly: Not Give UP

Market rebounded and recovered after tested the support at 1031. Looks market may not give up to fight for more bullish territory. As for now, we are looking for the immediate support at 1031 followed by 1000. To the upside, resistance remains at 1092-1100.

FCPO Weekly: Enter to Consolidation zone

Market is entering a consolidation zone after it managed to defend at 2149 level. We maintain our view sideways to lower in near term market while waiting for a significant breakout either to the upside at 2350 or downside support at 2149. Violation of either way may see next upside resistance at 2400-2450. Downside support will be followed by 2100-2050.

Trader's Comment: Palm oil futures retreated from yesterday’s rebound on pre-weekend profit taking.

Palm oil futures retreated from yesterday’s rebound on pre-weekend profit taking. Traders had been selling aggressively whenever prices approaching 2350 level to book their previous profit and also some speculative selling. Benchmark immediately fell to the morning low of 2306 after opened almost unchanged at 2340. Prices went up to intra day high of 2349 after second session resumed but was unable to hold and saw speculative selling interest emerged until it hit intra day low at 2296. However, some late intra day short covering activities led Benchmark Sep09 to bounce back slightly and settled RM19 lower at 2317. The bullish external markets had lent some support to the local CPO market. Asian time NYMEX crude oil extended its overnight strong gains and traded above $71 level, while Dalian palm and eCBOT soy oil edged more than 1% higher.

Trader's Highlight

DJI-NEW YORK, June 25 (Reuters) - U.S. stocks rallied on Thursday as investors were relieved Fed Chairman Ben Bernanke withstood a barrage of pointed questions from Congress on the Bank of America-Merrill Lynch deal relatively unscathed.
president at Morgan Asset Management, in Birmingham, Alabama.

The Dow Jones industrial average <.DJI> jumped 172.54 points, or 2.08 percent, to 8,472.40, snapping a four-day losing streak. The Standard & Poor's 500 Index <.SPX> gained 19.32 points, or 2.14 percent, to 920.26. The Nasdaq Composite Index <.IXIC> advanced 37.20 points, or 2.08 percent, to 1,829.54. president at Morgan Asset Management, in Birmingham, Alabama.

NYMEX-NEW YORK, June 25 (Reuters) - U.S. crude oil futures rebounded sharply on Thursday, jumping above $70 a barrel, on supply snags in Nigeria, optimism about economic recovery fueling Wall Street and a rally in gasoline futures.

Crude oil futures bounced early from Wednesday's loss on news that a main militant group had sabotaged a Royal Dutch Shell oil pipeline in Nigeria on Thursday, the latest in a string of attacks.

On the New York Mercantile Exchange, August crude settled up $1.56, or 2.27 percent, at $70.23 a barrel, the highest settlement since June 18's $71.37. It traded from $68.11 to $70.93.

CBOT-SOYBEANS - July up 11 cents per bushel at $11.96. Led by meal after USDA reported strong export sales from last week. Tight stocks of soybeans continue to boost nearby soybean futures contracts.

U.S. Census Bureau said soy crush in May below average estimates and below year-ago.

CBOT-SOYOIL - July up 0.10 cent per lb at 36.54 cents. Spillover support from gains in soybeans, meal, with additional support from higher crude oil.

U.S. Census Bureau said U.S. soyoil stocks at the end of May above average analysts' estimates, year-ago figure.

FCPO-KUALA LUMPUR, June 25 (Reuters) - Malaysian palm oil jumped as much as 4 percent on Thursday to hit a one-week high as traders bet on more orders from India after the government said monsoon rains could be below normal for the first time in four years.

The benchmark September palm contract on the Bursa Malaysia Derivatives Exchange rose as much as 90 ringgit to 2,340 ringgit ($662.1) a tonne, a level unseen since June 18, before settling at 2,336 ringgit. Overall traded volume stood at 13,813 lots at 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 25 (Reuters) - Most Southeast Asian stock
markets rose for a second day on Thursday as gains in financials such as DBS Group, Maybank and Bank Rakyat helped push Singapore, Malaysia and Indonesia to their highest in more than a week.

A statement by the U.S. Federal Reserve after a policy meeting reinforced the view that U.S. rates would be kept at a record low for some time, boosting optimism in stocks.

"The Fed's decision to leave rates unchanged was unsurprising. More importantly, the commentary in the FOMC statement suggests tightening measures are not on the horizon," Macquarie Research Equities said in a note.

Singapore's index <.FTSTI> closed up 1.03 percent, slightly below its early rise to the highest level since June 15, with DBS Group Holdings , Southeast Asia's biggest bank, up 1.8 percent.

Malaysia's index <.KLSE> rose 1.5 percent to its highest since June 17, with Malayan Banking up 2.6 percent and Bumiputra Commerce 1.7 percent higher.

The Jakarta index <.JKSE> climbed 2.4 percent to its highest level since June 16, with Bank Rakyat adding 5.7 percent and Bank Central Asia rising 4.8 percent.

DJI Daily: Sideways likely to continue

Market is likely to extend its sideways move in near term. We maintain the downside support at 8200-8000. To the upside, resistance is at 8600-8800.

KLSE Daily: Firm

Market gaped up with another long white candle had beautified the overall immediate technical landscape. As for now, resistance is stood at 1075-1080 followed by 1095. For downside, support is pegged at 1064-1059 (gap left over on 25/6/2009) followed by 1046-1044 (gap left over on 24/6/2009.

FKLI Daily: looking Good

Market violated the resistance at 1065-1070 and stayed firm had added strength to the upside move. As for now, we are looking for the upside resistance at 1080-1092. Downside support is pegged at 1050-1040.

FCPO Daily: remains in Consolidation phase

Market remains in consolidation phase still looking for a significant breakout either to the downside at 2149 or the upside resistance at 2350.

Trader's Comment: Palm oil futures recovered from yesterday’s losses to end broadly higher on India monsoon concern.

Palm oil futures recovered from yesterday’s losses to end broadly higher on India monsoon concern. News that India’s monsoon rain, a lifeline to its farmers for irrigation, are expected to be below normal for the first time in four years led Benchmark Sep09 to rally through out the day to settle RM86 higher at 2336, as traders speculate on more imports from India. On the other side, the results of 1-25 June export data released by both private cargo surveyors showed slightly improved from last month corresponding period and this had also lent some support to the CPO prices. External markets were supportive as both Dalian palm and eCBOT soy oil were up more than 1% while Asian time NYMEX crude oil clawed back its earlier losses to inch higher in late trading.

Breaking News-RTRS-Palm oil set to boost share of total oils demand

LONDON, June 24 (Reuters) - Palm oil is well-placed to raise its share of total world oils and fats consumption as it has higher yields than other oilseeds, a long productive life, and is cheap to produce, delegates told a conference on Wednesday.
Paul Nellens, a member of the executive committee of SIPEF N.V., a palm oil producer, told the Public Ledger's Edible Oils 2009 conference that palm oil output had surged to 43 million tonnes in 2008 from around 2 million tonnes 30 years ago.
He said palm oil had increased its share of the consumption of the world's leading 17 oils and fats to 27.5 percent in 2008/09 from 13.9 percent in 1990/91, which he attributed to the high yields per hectare of palm oil compared to alternatives.

Breaking News-RTRS-UPDATE 1-Edible oils demand rise dented but defiant

LONDON, June 24 (Reuters) - The global economic crisis is dragging on demand for edible oils but production and consumption are expected to increase markedly over the longer term, an industry analyst said on Wednesday.
"Edible oil consumption is growing but with a temporary slowdown," said Vito Martielli, industry analyst with Rabobank.
"Confidence and economic recovery are key to a recovery in demand," he told The Public Ledger's Edible Oils 2009 conference.

Breaking News-RTRS-Indian trade body calls for import tax on veg oils

NEW DELHI, June 24 (Reuters) - India, the world's biggest vegetable oil buyer after China, should tax imports of cooking fat to check a surge in overseas purchases, a leading trade body said on Wednesday.
"We have strongly recommended to the government to revisit the import duty structure," Ashok Sethia, president of the Solvent Extractors' Association of India (SEA), said in a statement.
The SEA said the government should slap an import tax of at least 20 percent on crude palm oil, 30 percent on RBD palmolein, 25 percent on crude soyoil.

Trader's Highlight

DJI-NEW YORK, June 24 (Reuters) - The Dow fell for the fourth day and other indexes ended well off the day's highs on Wednesday after the Federal Reserve reiterated concerns about the economic outlook at the end of its policy meeting.

The Fed, as expected, left the benchmark fed funds rate at almost zero. The bond market sold off on disappointment that the Fed did not announce an acceleration or increase of its purchases of Treasury and mortgage-related debt.

The Fed's words on the economic outlook were mixed. The central bank said the economy was likely to remain weak for a time, but the contraction's pace was slowing.

The Dow Jones industrial average <.DJI> was down 23.05 points, or 0.28 percent, at 8,299.86. But the Standard & Poor's 500 Index <.SPX> was up 5.84 points, or 0.65 percent, at 900.94. The Nasdaq Composite Index <.IXIC> was up 27.42 points, or 1.55 percent, at 1,792.34.

NYMEX-NEW YORK, June 24 (Reuters) - U.S. crude oil futures ended lower on Wednesday after the dollar extended gains following the U.S. Federal Reserve's decision to keep interest rates unchanged, as expected.

On the New York Mercantile Exchange, August crude settled down 57 cents, or 0.82 percent, at $68.67 a barrel, trading from $68.06 to $69.86.

CBOT-SOYBEANS - July up 6 cents per bushel at $11.85. November up 3-1/2 cents at $10.08. Tight soy supplies continue to give soybean market a boost. Hot, dry conditions in U.S. crop belt seen removing some of the market's weather premium.

CBOT-SOYOIL - July down 0.49 cent per lb at 36.44 cents.

FCPO-KUALA LUMPUR, June 24 (Reuters) - Malaysian palm futures fell 1.6 percent on Wednesday, retreating from the previous day's surge as weakening soyoil prices prompted some investors to take profits.

Sentiment remained buoyant as Malaysian palm oil shipments were expected to show improvement in the June 1-25 reporting period in data from cargo surveyors Intertek Testing Services and Societe Generale de Surveillance that is due on Thursday.

The benchmark September palm oil contract on the Bursa Malaysia Derivatives Exchange settled down 36 ringgit at 2,250 ringgit ($637) per tonne, having closed six percent higher the previous day.

Overall traded volume stood at 11,380 lots of 25 tonnes each. Open interest dropped to 68,421 lots, from 73,086 lots on Tuesday.

REGIONAL EQUITIES-BANGKOK, June 24 (Reuters) - Major Southeast Asian stock markets rose on Wednesday, ending two days of falls, with financials and energy heavyweights leading the way ahead of news from a U.S. Federal Reserve policy meeting.

Malaysia's index <.KLSE> gained 1.3 percent, recouping most of a two-day fall of 1.42 percent, with palm planter IOI Corp up 2.2 percent and Malayan Banking up 2.7 percent.

Singapore's index <.FTSTI> climbed 2.4 percent, erasing a 2.1 percent loss over the previous two days, with outperformers including United Overseas Bank , which surged 3.3 percent, and Singapore Airlines , which jumped 4.1
percent.

Trader's Comment: Palm oil futures eased off from yesterday’s strong rebound to close lower in a tight range trading.

Palm oil futures eased off from yesterday’s strong rebound to close lower in a tight range trading. Benchmark Sep09 opened RM11 lower at 2275 and immediately fell to intra day low of 2231, tracking the early losses in eCBOT soy oil. It then bounced back slightly and started to hover between a tight range of 2233-2270 level through out most of the sessions until it finally settled RM36 lower at 2250. External markets were rather mix with no signs of major movement seen. Dalian palm inched higher today while eCBOT soy oil gave up some of its overnight gains to edge lower. Asian time NYMEX crude oil was slightly down to below $69 level. Market talk of 1-25 June export data which is scheduled to release tomorrow may improve to about last month figure. 1-20 June export was down 3%-4% compared with corresponding period (1-20 May) reported by both surveyor ITS & SGS. Daily volume reduced significantly to only 11,380 contracts changed hands.

KLSE Daily: still Firm

Market rebounded and recovered for the 2nd day had helped to strengthen the market momentum. As for now, resistance is stood at 1060-1065. For downside, support is pegged at 1046-1044 (gap left over on 24/6/2009.

FKLI Daily: remains Supportive

Market tested the resistance at 1055-1060 had strengthened further the immediate outlook. Thus, we continue to look for the immediate support at 1040-1030. To the upside, resistance is at 1065-1070.

FCPO Daily: Searching for direction

Market is searching for direction after a strong rebound. Thus, market may extend its consolidation phase until it shows a significant breakout either to the downside at 2149 or the upside resistance at 2350.