Trader's Comment: Palm oil futures inched higher after tight range trading.

Palm oil futures inched higher after tight range trading. Benchmark Dec09 had been hovering between 2130-2116 through out most of the sessions before it hit intra day low of 2112 in late trading and settled RM10 higher at 2115. The strong close in overnight NYMEX crude oil which gained more than USD3 had lifted BMD market to trade in positive territory today. Nevertheless, trading activity remained inactive and volume fell dramatically with only a total of 9,041 contracts traded in the market due to China market holiday in conjunction with their National Day. Asian time NYMEX crude oil eased off on profit taking after its overnight strong gains while eCBOT soy oil traded mix to steadier.

Trader's Highlight

DJI-NEW YORK, Oct 1 (Reuters) - The Dow and S&P 500 suffered their worst one-day fall in three months on Thursday after economic reports fueled fears about the recovery's strength.

The Dow Jones industrial average <.DJI> tumbled 203.00 points, or 2.09 percent, to end at 9,509.28. The Standard & Poor's 500 Index <.SPX> slid 27.23 points, or 2.58 percent, to 1,029.85. The Nasdaq Composite Index <.IXIC> lost 64.94 points, or 3.06 percent, to 2,057.48.

Bank of America Corp shares slipped 4.2 percent to $16.21 after Chief Executive Ken Lewis said he was retiring after months of being dogged by a series of government investigations into the company's acquisition of Merrill Lynch. The company did not name a successor. The news was announced late on Wednesday.

NYMEX-NEW YORK, Oct 1 (Reuters) - U.S. crude futures closed higher in a late run-up on Thursday on worries about talks between Iran and the West over its nuclear program and as follow-through buying spurred by improved demand lifted gasoline futures.

U.S. President Barack Obama said on Thursday Iran heard a unified message from the international community at talks in Geneva, and Tehran must now take steps to ensure its nuclear program is not for weapons.

On the New York Mercantile Exchange, November crude settled up 21 cents, or 0.3 percent, at $70.82 a barrel, trading from $69.13 to $71.39.

CBOT-SOYBEANS - November down 9 cents at $9.18 a bushel. Following drop in crude oil market amid thin volume. Expectations for a large crop also weigh on prices.

CBOT-SOYOIL - October up 0.28 cent at 34.25 cents per lb; December up 0.26 cent at 34.59. Some unwinding of meal/oil spreads supports market but drop in crude oil prices limits gains.

FCPO-KUALA LUMPUR, Oct 1 (Reuters) - Malaysian crude palm oil futures inched up 0.5 percent on Wednesday as a jump in crude prices the previous day lifted the market in light trade.

The benchmark December contract on the Bursa Malaysia Derivative Exchange settled up 10 ringgit to 2,115 ringgit ($611.3) per tonne after going as high as 2,130 ringgit.

REGIONAL EQUITIES-On Monday, the market fell to 2,082 ringgit, a level unseen
since Se BANGKOK, Oct 1 (Reuters) - Southeast Asian stock markets ended mixed on Thursday with Thailand outperforming on buying in banking shares while big capitalised companies such as Ayala Land, Axiata Group and Medco Energy led the way elsewhere.

Regional markets came off their days' high as trading volume declined amid caution over the pace of economic recovery. Thailand's index <.SETI> climbed 1.4 percent, Malaysia's index <.KLSE> added 0.5 percent, Indonesia's index <.JKSE> was up 0.4 percent while the Philipines <.PSI> gained 1 percent.

Indexes in Singapore <.FTSTI> and Vietnam <.VNI> drifted into a negative territoy, sliding 0.6 percent and 2.1 percent, respectively. pt. 14.

FCPO Daily: No clear direction

Market stuck in tight rangy mode above 2100 levels without any clear direction. Thus, market may continue its consolidation phase in near term. Hence, we maintain the downside support and upside resistance at 2070 and 2190-2220 levels respectively.

DJI Daily: Disappointed bulls

A sharp decline to violate the downside support at 9600 levels had weaken the overall technical outlook. Thus, upside gain is limited following prices losing ground and more room to bias downside potential in near term market. As for now, we are looking for the immediate support at 9440 to 9420 levels followed by 9300 levels. To the upside, resistance is pegged at 9820-9850 levels.

FKLI Daily: Bulls look little tiredness

Market continue to move in sideways manner defended above 1200 levels. However, bulls look little tiredness. Thus, any breakdown below the 1200 levels may weaken the overall positive momentum. We maintain the immediate downside support at 1200 followed by 1190-1185. To the upside, resistance is maintain at 1220-1225 followed by 1232.

Trader's Comment: Palm oil futures ended with little change as it remained in its mix and sideways range trading.

Palm oil futures ended with little change as it remained in its mix and sideways range trading. Benchmark Dec09 hovered between 2121-2096 through out most of the sessions until it finally settled at overnight level. The results of both private cargo surveyors were within market expectation after they released their negative end Sep export data. ITS reported a 7.8% decline while SGS stated a 2.2% drop. Hence, market continue to consolidate at around 2100 level as traders waiting for more new leads while China Dalian Commodity Exchange will be on holiday until 8 Oct in conjunction with their National Day. Asian time NYMEX crude oil edged more than 1% higher in late trading while eCBOT soy oil was rather mix today.

Trader's Highlight

DJI-NEW YORK, Sept 30 (Reuters) - U.S. stocks fell on Wednesday after a surprising contraction in an index of Midwest business activity, but buying of technology bellwethers like Cisco Systems Inc at the end of a strong quarter limited losses.

The Dow Jones industrial average <.DJI> slipped 29.92 points, or 0.31 percent, to 9,712.28. The Standard & Poor's 500 Index <.SPX> fell 3.53 points, or 0.33 percent, to 1,057.08. The Nasdaq Composite Index <.IXIC> shed 1.62 points, or 0.08 percent, to 2,122.42.

NYMEX-NEW YORK, Sept 30 (Reuters) - U.S. crude oil futures surged nearly 6 percent to end above $70 a barrel on Wednesday as refined product futures rallied on supportive inventory data and traders shrugged off a big increase in crude oil supplies.

On the New York Mercantile Exchange, November crude settled up $3.90, or 5.85 percent, at $70.61 a barrel, trading from $66.22 to $70.72.

CBOT-SOYBEANS - November up 10 cents at $9.27 a bushel. Late fund buying tied to end of the quarter positioning boosted market as did harvest delays in U.S. along with rally in crude oil market and lower dollar.

Larger-than-expected U.S. soybean stocks number in USDA's September report limit gains.

CBOT-SOYOIL - October up 0.50 cent per lb at 33.97 cents per lb; December up 0.48 cent at 34.33. Rally in crude oil lifts soyoil.

FCPO-KUALA LUMPUR, Sept 30 (Reuters) - Malaysian crude palm oil futures edged lower on Wednesday, with traders saying sharp moves are unlikely for much of this week and next due to a lack of new leads and as big buyer China will be on holiday.

The benchmark December contract on the Bursa Malaysia Derivative Exchange shed 7 ringgit to 2,103 ringgit ($607.8) per tonne after going as high as 2,121 ringgit. On Monday, the market fell to 2,082 ringgit, a level unseen since Sept. 14.

REGIONAL EQUITIES-BANGKOK, Sept 30 (Reuters) - Singapore and Thailand eked out
small gains on Wednesday on late buying in big caps such as DBS Group and PTT, but some other Southeast Asian stock markets fell back after a surprise fall in U.S. consumer confidence.

Singapore's index <.FTSTI> ended up 0.4 percent while Thailand's <.SETI> was up 0.25 percent and Indonesia added 0.97 percent. Malaysia <.KLSE> fell 0.5 percent while indexes in the Philippines <.PSI> and Vietnam <.VNI> posted smaller losses.

FCPO Daily: Found immediate support

Consolidation mode is likely to extend in near term following prices defended at 2100 levels. Thus, we continue to look for the downside support and upside resistance at 2070 and 2190-2220 levels respectively.

CBOT Soyoil Daily: in Range trading

Market momentum has been improved a little due to prices gains ground. Thus, market may move in sideways in near term. Immediate downside support remains pegged at USD33.00 followed by USD32. To the upside, resistance is looking at USD35 followed by USD35.30.

NYMEX Crude Daily: Finding base

A sharp rebound after prices manage to find some support around USD65 had neutralized the negative immediate technical landscape. However, more support confirmation is still needed in order to change the current negative view. Hence, market may consolidate and move in sideways manner in near term. As for now, we are looking for the upside resistance and downside support at USD73 and USD65 levels respectively.

DJI Daily: 9600 levels defended well

Market defended well at 9600 levels and rebounded to off low. Thus, we continue to looking for the upside at 10,000 levels. To the downside, support is still pegged at 9600 levels.

FKLI Daily: Consolidation phase is likely to extend

Consolidation phase is likely to extend in near term. Thus, we continue to look for the immediate downside support at 1200 followed by 1190-1185. To the upside, resistance is maintain at 1232-1240.

Breaking News-RTRS-Indonesia to keep Oct palm oil export tax at zero

JAKARTA, Sept 30 (Reuters) - Indonesia will keep its palm oil export tax at zero for the third consecutive month in October but will raise the crude palm oil (CPO) base export price slightly to $617 a tonne from $615 in September due to price rises, a trade ministry official said on Wednesday.

Trader's Comment: Palm oil futures ended almost flat after a mix range trading.

Palm oil futures ended almost flat after a mix range trading. Benchmark Dec09 had been hovering between 2127-2093 through out the day until it finally settled RM2 higher at 2105. Market was in consolidating mood after series of bearish news released in previous days. External markets were rather mix as Asian time NYMEX crude oil inched lower while eCBOT soy oil and Dalian palm traded mix to unchanged. Market talk that end Sep export figure which will be release tomorrow maybe at around 1.2m tonnes, compare with 1.33m tonnes reported by ITS in last month same period. Daily volume declined slightly with a total of 16,248 contracts changed hands.

Breaking News-RTRS-PREVIEW-USDA to confirm thin US soy stocks, big grain build

By Christine Stebbins
CHICAGO, Sept 28 (Reuters) - Red-hot demand for U.S. soybeans from China during 2009 have likely drawdown soy stocks to their lowest level in three decades, while corn and wheat stocks are building, analysts said.
The U.S. Department of Agriculture will report on Wednesday at 8:30 a.m. EDT (1230 GMT) the amount of soybeans, corn and wheat held by farmers and grain firms on Sept. 1. While the quarterly grain stocks report typically is not a market shaker, it sets the stage for the upcoming season for corn and soy.
Sept. 1 marks the start of the 2009/10 marketing year for both, so the quarterly stocks data becomes the official year-end data. Currently, USDA in its Sept. 14 supply/demand report estimated corn 08/09 end-season stocks at 1.695 billion bushels and soybeans at 110 million.

Breaking News-RTRS-Oil World sees booming U.S. soy exports from Oct

AMSTERDAM, Sept 29 (Reuters) - U.S. exports of soybeans, soy oil and meal are expected to rise sharply from October but will not be able to offset a sharp decline in South American supply, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Delayed harvesting in several parts of the United States has contributed to scarce soybean supplies at U.S. export locations, but Oil World expects the situation to reverse in coming months as harvesting picks up.

Trader's Highlight

DJI-NEW YORK, Sept 29 (Reuters) - U.S. stocks fell on Tuesday as a surprise drop in a gauge of consumer confidence overshadowed signs of stabilization in housing and solid earnings from Walgreen Co . With the third quarter drawing to a close, trading was volatile and volume light.

The Dow Jones industrial average <.DJI> dropped 47.16 points, or 0.48 percent, to 9,742.20. The Standard & Poor's 500 Index <.SPX> shed 2.37 points, or 0.22 percent, to 1,060.61. The Nasdaq Composite Index <.IXIC> dipped 6.70 points, or 0.31 percent, to 2,124.04.

NYMEX-NEW YORK, Sept 29 (Reuters) - U.S. crude oil futures moved slightly lower in post-settlement trading on Tuesday after industry data showed that crude oil inventories rose more than expected last week.

The U.S. Energy Information Administration will issue its own weekly data on Wednesday at 10:30 a.m. EDT (1430 GMT).

On the New York Mercantile Exchange at 5 p.m. EDT (1700 GMT), November crude was down 35 cents, or 0.52 percent, at $66.49 a barrel. It had settled down 13 cents, or 0.19 percent, at $66.71, trading trading from $65.82 to $67.33.

CBOT-SOYBEANS - November down 2-1/2 at $9.17 a bushel. Turned lower after early climb on prospects for a huge U.S. soy harvest. Reports continue that harvest yields will be huge this season. Corn/soy spreading weighs on beans.

CBOT-SOYOIL - October up 0.23 cent per lb at 33.47 cents per lb; December up 0.22 cent to 33.85 cents. Rebounded late on short-covering.

positioning before USDA issues Sept. 1 stocks data and annual wheat summary Wednesday. USDA expected to confirm thin U.S. soy stocks, big grain build.

FCPO-KUALA LUMPUR, Sept 29 (Reuters) - Malaysian crude palm oil futures edged higher on Tuesday, recovering a little from two-week lows hit the previous day as traders begin to bet on improved demand in coming weeks.

The benchmark December contract on the Bursa Malaysia Derivative Exchange rose 2 ringgit to 2,105 ringgit ($604.3) per tonne after going as high as 2,127 ringgit. The previous day, the market fell to 2,082 ringgit, a level unseen since Sept. 14.

REGIONAL EQUITIES-BANGKOK, Sept 29 (Reuters) - Shares in Singapore and Indonesia gained more than 1 percent on Tuesday, leading a rebound across Southeast Asian stock markets as big caps such as DBS, Astra International and Bangkok Bank recovered some recent losses.

Thailand's index <.SETI> rose 0.9 percent, Malaysia <.KLSE> was up 0.19 percent, the Philippines <.PSI> 0.8 percent and Vietnam <.VNI> inched up 0.1 percent.

Singapore's DBS Group Holdings , Southeast Asia's biggest bank, climbed 1.2 percent, plantation and palm oil processor Wilmar International rose 1.6 percent and Genting Singapore added 2.7 percent.

FCPO Daily: Remains weak

We stick to sideways to bias downside potential in near term market despite prices consolidate around 2100 mark. A breakout from the recent low at 2070 may provide more room to bias downside potential. While, upside resistance is pegged at 2190-2200.

CBOT SOYOIL Daily: Struggling to survivie

Market is struggling around USD33 and trying to defend. Nevertheless, overall momentum remains weak. Thus, we maintain sideways to bias downside potential in near term. Immediate downside support is pegged at USD33.00 followed by USD32. To the upside, resistance is looking at USD35.

FKLI Daily: Entering into consolidation zone

Market is entering into consolidation zone with moving in bias sideways manner. Thus, we continue to look for the immediate downside support at 1200 followed by 1190-1185. To the upside, resistance is maintain at 1232-1240.