Trader's Comment: Continuous profit taking led palm oil futures to end lower after its earlier mix trading.

Continuous profit taking led palm oil futures to end lower after its earlier mix trading. Benchmark July09 was well supported initially as prices climbed slowly until it hit intra day high of 2731 in the afternoon session. Nevertheless, today’s buying sentiment was not as strong as the previous days. The emerged of profit taking activities saw Benchmark July09 came off from the high and slid to intra day low at 2603, fully covered yesterday’s left over gap. It finally ended RM77 lower at 2625. External markets were rather mix today as eCBOT soy oil eased off slightly while Dalian palm ended higher. Trading volume also reduced slightly with 22,092 contracts changed hands.

Trader's Highlight

DJI-NEW YORK, May 4 (Reuters) - U.S. stocks rallied on Monday, driving the S&P 500 into positive territory for the year as investors bet banks' capital shortfalls may be manageable and housing data fueled hopes the recession is easing.

Aside from reports suggesting bank balance sheets need less shoring up than feared just a few months ago, White House comments that the Obama administration did not see a need right now to ask Congress for more bank bailouts also pushed the sector higher.

The Dow Jones industrial average <.DJI> rose 214.33 points, or 2.61 percent, to 8,426.74. The Standard & Poor's 500 Index <.SPX> gained 29.72 points, or 3.39 percent, to 907.24 -- its first close above the 900 level since early January. The Nasdaq Composite Index <.IXIC> climbed 44.36 points, or 2.58 percent, to 1,763.56.

Although final stress test results are expected to be released on Thursday, investors bet they will show banks do not need a larger financial cushion. That outcome would minimize the dilution of current shareholders' equity and avoid giving the government a bigger stake in the banks.

NYMEX-NEW YORK, May 4 (Reuters) - U.S. crude oil futures ended higher for the fourth session in a row on Monday, notching the highest settlement for the year, as optimism about an economic recovery that lifted Wall Street also supported oil markets.

On the New York Mercantile Exchange, June crude settled up $1.27, or 2.39 percent, at $54.47 a barrel, the highest settlement since Nov. 24, 2008, when prices closed at $54.50. June crude traded from $52.56 to $54.55, the highest since intraday prices hit $54.66 on March 26.

CBOT-SOYBEANS - May up 13-1/4 cents at $11.15-1/4 a bushel; new-crop November down 1/2 at $9.70-1/2.

Soy rallies to fresh seven-month top on tight U.S. stocks and strong technicals. Supported by talk Argentina's soybean crop this year may fall as low as 31.0 million tonnes, below the Buenos Aires Grain Exchange's latest forecast for 34.0 million.

CBOT-SOYOIL - May up 0.51 cent at 37.94 cents per lb. Following soybeans.

FCPO-JAKARTA, May 4 (Reuters) - Malaysian palm futures hit a 38-week intraday high on Monday, tracking soy which soared on fears of tight global vegetable oil supplies, but gave up some gains in late selling, traders said.

The benchmark July contract rose 107 ringgit, or 4.1 percent, to 2,702 ringgit per tonne ($765.66), after going as high as 2,798 ringgit, the strongest intraday level since August 8 last year.

Other traded months rose between 104 and 203 ringgit. <0#KPO:>. Overall volume more than tripled the usual at 36,748 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, May 4 (Reuters) - Southeast Asian stocks hovered
around seven-month highs on Monday as growing optimism over a global economic recovery fuelled buying of top lenders such as DBS Group, Maybank, Bank Rakyat and Bangkok Bank.

Hopes that the United States economy was starting to stabilise and confidence the global economy was recovering faster than expected attracted investors back to stocks and helped Asian markets extend last week's gains.

In Kuala Lumpur, the stock index <.KLSE> climbed 1.9 percent to its highest since Oct. 6, with top lender Maybank rising 2.8 percent and number two Bumiputra-Commerce gaining 6.2 percent.

In Indonesia, Southeast Asia's best performer this year, the index <.JKSE> jumped 3.4 percent to its highest since Sept. 29, with state-owned Bank Rakyat surging 6.8 percent and number five Bank Danamon up 9.4 percent.

Singapore's index <.FTSTI> jumped 5.7 percent to its highest since Oct. 15, with heavyweight bank DBS Group , United Overseas Bank and Oversea Chinese Banking Corp all posting hefty gains of more than 10 percent.

Trader's Comment: Bull was still fiercely in charge as CPO futures easily broke above 2700 level and almost tested 2800 mark.

Bull was still fiercely in charge as CPO futures easily broke above 2700 level and almost tested 2800 mark. However, it later encountered some intra day profit taking activities and surrendered part of its earlier gains to end off high. Benchmark July09 initially gapped up RM95 higher to open at 2690 and immediately rallied strongly to the level above 2700, tracking last week’s CBOT soybean prices that surged to 7-month high. It then climbed to hit intra day high of 2798 in the second session before a wave of intra day profit taking activities arrived and sent Benchmark July09 to settle RM107 higher at 2702. Market sentiment was extremely bullish today due to the support from external factors. eCBOT soy oil had rose more than 3% higher during Asian time trading while Dalian palm locked at the limit up prices through out the day. Traders were also optimistically speculating for the upcoming MPOB supply & demand data which is scheduled to release next Monday. Daily volume hit the new recent high again with 36,748 contracts changed hands.

DJI Daily: sideways to bias upside

A good closing above 8400 market shows its the end of consolidation phase. Market continue to strengthen its sideways to bias upside momentum. We are now looking for the next resistance at 8600-8700. Downside support is pegged at 8000 followed by 7700.

KLSE Daily: Maintain positive posture

Bull won the battle as successfully breakout from 1000 mark after tried for few attempts. Overall daily technical outlook looks bullish and looks market may want to challenge the upside resistance at 1020-1030 in near term. To the downside, support is stood at 995-990.

FKLI Daily: Holding well at 1000 mark

Market violated the 1000 mark convincingly looks likely to inch higher in near term. As for now, upside resistance is looking at 1030-1040. Downside support is pegged at 998-993.5 (gap left over on 4/5/2009).

FCPO Daily: Bull run likely to continue

Bull run likely to extend as market gap up sharply and close firm at above 2700 mark. Thus, we are now looking for the upside resistance at 2800-2850.To the downside, support is pegged at 2679-2618 (gap left over on 4/5/2009).

Breaking News-RTRS-Several US soy cargoes find new China buyers-trade

BEIJING/SINGAPORE, April 30 (Reuters) - At least two U.S. soybean cargoes have found new buyers in China, traders said on Thursday, after worsening crushing margins and swine flu fears threatened to weigh on trade between the top buyer and seller of soy globally.
Traders said earlier this week that up to five cargoes, or 300,000 tonnes, of Chinese imports had been cancelled.

Breaking News-RTRS-China to buy extra domestic soybeans for reserves

BEIJING, April 30 (Reuters) - China has raised its domestic soybean buying target by 21 percent to 7.25 million tonnes, the State Administration of Grain said on Thursday, in a push to help farmers sell last year's surplus before the planting season.
The agency increased its existing target for soybean purchases by 1.25 million tonnes because farmers are struggling to sell in a market swamped by record import volumes -- which were prompted in part by China's own soy buying campaign.
Buying will continue until the end of June, with the government offering its previous purchase price of 3,700 yuan ($542.2) per tonne, around 300 yuan higher than the price of imported U.S. soybeans arriving in China this week.

Trader's Highlight

DJI-NEW YORK, May 3 (Reuters) - U.S. stocks keep proving the naysayers wrong, as major averages continue to gain despite expectations for the recent rally's demise. And this week may be no different.

Fears that bank stress tests will cast an even bigger shadow over the addled financial sector coupled with uncertainty about the April employment figures might just bring the rally to an end.

It will undoubtedly be a busy week with Federal Reserve Chairman Ben Bernanke heading to Capitol Hill to testify on the economy on Tuesday, the all-important April nonfarm payrolls data set for release on Friday and authorities worldwide mobilizing against a deadly new flu strain.

Friday's payrolls report is expected to show the economy shed more than 600,000 jobs in April and the unemployment rate jumped to 8.9 percent from March's 8.5 percent.

Other key data will be Tuesday's reading on the vast service sector from the Institute for Supply Management, the government's productivity and costs report for the first quarter on Thursday, and the ADP National Employment report on Wednesday.

Bernanke will appear before the U.S. Congress' Joint Economic Committee on Tuesday at 10 a.m. EDT (1400 GMT), while on Thursday he is scheduled to speak on banking supervision.

NYMEX-NEW YORK, May 1 (Reuters) - U.S. crude futures rose 4 percent on Friday to settle above $53 a barrel in what sources called a technical breakout as improved consumer confidence and the dollar's weakness versus the euro helped lift prices.

On the New York Mercantile Exchange, June crude oil rose $2.08, or 4.07 percent, to settle at $53.20 a barrel, trading from $50.43 to $53.65, highest intraday front-month crude price since $53.90 was reached on April 3.

CBOT-SOYBEANS - May soybeans up 32 cents to $11.02 per bushel. Fund buying, shrinking U.S. soy supply amid big exports, including active sales to China and low yields of soy in South America boosted soy.

CBOT-SOYOIL - May up 1.21 cents to 37.43 cents per pound. Fund buying and following soybeans.

FCPO-KUALA LUMPUR, April 30 (Reuters) - Asian vegetable oil markets surged on Friday on expectations that resilient exports could further aggravate an on-going tightness in global vegetable oil inventories.

Vegetable oil prices brushed aside swine flu jitters that plagued markets in the past few days to focus on Argentina revising its soy harvest downwards, resilient Malaysian palm oil exports and China raising its domestic soybean buying.

Malaysian palm oil futures <0#KPO:> closed to its highest monthly gain of 30 percent since July 2001, U.S soyoil for May shipment jumped 2.6 percent and the most active September soyoil contract on Dalian surged 4.9 percent.

REGIONAL EQUITIES-BANGKOK, April 30 (Reuters) - Southeast Asian stocks rose on
Thursday, with Singapore near two-week highs and Thailand at its highest in six months because of demand for leading stocks such as DBS Group and PTT due to optimism about the global economy.

In Kuala Lumpur, the index <.KLSE> ended up 2.4 percent, led by palm planter IOI Corp , which was up 4.9 percent, and Genting , which rose 6.9 percent.

Indonesia <.JKSE>, Southeast Asia's best performer this year, jumped 4.8 percent on Thursday to its highest since Oct. 6, with banks outperforming the broader market after reporting quarterly results that were better than analysts' forecasts.

DJI Weekly: Gaining ground

Market gaining ground following prices touch and go at 8300. Thus, we maintain the upside resistance and downside support at 8300-8400 followed by 8600. Downside support is pegged at 7700 followed by 7400-7300 level.

KLSE Weekly: may challenge 1000 mark again

Bull looks not to give up and may want to challenge 1000 mark again. To the downside, support is stood at 950.

FKLI Weekly: Holding ground

Market manage to hold ground. Thus, we maintain positive view in near term market. To the upside, resistance remains at 1030-1040. Downside support is pegged at 950.

FCPO Weekly: likely to march higher

Bull maintain its upward momentum and continue to march higher with 2400 mark defended well. Thus, market likely to extend its upward move with upside resistance is at 2648 followed by 2700-2750. To the downside, support is pegged at 2400-2380.

Trader's Comment: Palm oil futures ended with triple digit gains after rallied strongly on pre-long weekend covering.

Palm oil futures ended with triple digit gains after rallied strongly on pre-long weekend covering. The released of end April export data which is within market expectation further enhanced traders’ belief that palm oil end stock for the month of April will likely to draw down further. Market sentiment was very bullish today as CPO market resumed from its weekly bull run after digesting the swine flu fears since the beginning of this week. Benchmark July09 opened RM31 higher at 2511 and rallied all the way up through out the day. It hit intra day high of 2618 before it finally ended RM115 higher at 2595. Bullish external markets coupled with pre-long weekend short covering had boosted the buying sentiment in local CPO market. Daily volume increased tremendously to 32,076 contracts changed hands.

CPO Tender Summary and Delivery Location as at April 2009

Breaking News-RTRS-Malaysia rates unchanged, easing may be over

KUALA LUMPUR, April 29 (Reuters) - Malaysia's central bank kept its key rate unchanged on Wednesday, against expectations of a Reuters poll, in a move that analysts said signalled it may pause after cuts totalling 150 basis points.
The overnight policy rate was kept steady at 2 percent after a 50 basis point cut in February, the last rate setting meeting, contrary to analyst forecasts of a 25 basis point cut according to a Reuters poll.

Breaking News-RTRS-China cancelling soy cargoes as margins fall-trade

BEIJING/SINGAPORE, April 29 (Reuters) - Chinese soybean buyers have cancelled up to five U.S. soybean cargoes in the past few days because plentiful imports are squeezing crushing margins, traders said on Wednesday.
"We heard some 4-5 cargoes for June, July and August shipment were cancelled. Crushing margins have fallen a lot recently," said one Beijing-based trading manager with an international trading house.
Some of the traders contacted by Reuters said they had no direct knowledge of the actual cancellations, and gave varying estimates of the number of cargoes that had been cancelled.
Another trading manager said he had also heard of similar amount of cancellations but could not confirm the details, while several sources put the number of shipments at two or three.

Trader's Highlight

DJI-NEW YORK, April 29 (Reuters) - U.S. stocks climbed on Wednesday after grim growth data offered hints of future expansion, a prospect reinforced by the Federal Reserve's hopeful comments.

Gross domestic product dropped at a 6.1 percent annual rate in the first quarter, but the data showed consumer spending rose and a decline in inventories suggested
manufacturers and retailers will have to stock up in merchandise.

The central bank backed up the positive sentiment when its policy meeting concluded and the Fed said the economic outlook had improved modestly since its last meeting in March.

The Dow Jones industrial average <.DJI> gained 168.78 points, or 2.11 percent, to 8,185.73. The Standard & Poor's 500 Index <.SPX> gained 18.48 points, or 2.16 percent, to 873.64. The Nasdaq Composite Index <.IXIC> gained 38.13 points, or 2.28 percent, to 1,711.94.

NYMEX-NEW YORK, April 29 (Reuters) - U.S. crude futures ended higher on Wednesday, backed by a rebound on Wall Street and as traders shrugged off a large build in crude stocks and banked instead on a bigger-than-forecast drawdown in gasoline stocks.

On the New York Mercantile Exchange, June crude settled up $1.05, or 2.1 percent, at $50.97 a barrel, trading from $49.12 to $51.42.

CBOT-SOYBEANS - May up 44-1/2 cents at $10.34 per bushel. New-crop November up 32-1/2 at $9.32-1/2.

Rebounding from the swine flu-induced plunge on Monday. Support from tight U.S. soy stocks and disappointing South American harvest along with higher crude, stock markets and softer dollar.

Overhanging market was talk that China canceled up to five U.S. cargoes of soybeans amid softer crush margins.

CBOT-SOYOIL - May up 0.53 cent at 35.43 cents per lb. Higher soybeans and crude oil boosts soyoil.

FCPO-KUALA LUMPUR, April 29 (Reuters) - Malaysian crude palm oil futures gained 1 percent on Wednesday, bouncing off one-week lows earlier in the session, as investors shifted focus from swine flu to expectations of higher demand.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange settled up 24 ringgit at 2,480 ringgit ($690) a tonne after going as low as 2,413, a level unseen since April 21.

Other traded months ranged between a 10 ringgit fall and gains of up to 35 ringgit <0#KPO:>. Overall volume more than doubled to 24,260 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, April 29 (Reuters) - Singapore, Thai and Malaysian
stocks rebounded on Wednesday as investors bought back blue chips, betting that a swine flu outbreak would be contained and cheered by some improvement in U.S. economic data.

Southeast Asian countries have so far reported no cases of the flu, which has caused more than 150 deaths in Mexico.

Singapore's Straits Times Index <.FTSTI> recovered 2.28 percent, a day after falling to a near three-week low, while Thai stocks <.SETI> closed up 2.28 percent at their highest level since Oct. 13, 2008.

Malaysian shares <.KLSE> rose 0.18 percent, Indonesian stocks <.JKSE> rose 3.02 percent to a one-week high and Vietnam <.VNI> rose 1.88 percent, but Philippine shares <.PSI> fell for the third day, down 0.12 percent.

DJI Daily: Remain sideways

Market shows its effort to test the immediate resistance at 8100-8200 level. Nevertheless, it was not enough to change the current immediate outlook in sideways mode. Thus, we continue to look for the resistance at 8300-8400. While, downside remains at 7700.