Trader's Comment: CPO futures dully traded in a lower range amid weaker crude oil prices.

CPO futures dully traded in a lower range amid weaker crude oil prices. Benchmark Feb09 hit the intra day low of 1529 after opened RM30 lower at 1550 following a fall in overnight NYMEX crude oil coupled with easier CBOT soy complex. It then traded in a range between 1560-1540 level through out most of the sessions. Some short covering activities appeared in the middle of second session saw CPO prices bounced to intra day high of 1570. Nevertheless, it immediately retreated back into the range due to lack of follow through buying activities. Benchmark Feb09 finally settled RM35 lower at 1545. News that India will import less palm oil due to better winter soybean crop and attractive rival soy oil prices had also provided some selling pressure to the weak market sentiment. Some players were also cautious ahead of FOMC meeting tonight and OPEC meeting tomorrow.

Breaking News-RTRS-UPDATE 1-AIG sells $39.3 bln in assets to NY Fed's fund

NEW YORK, Dec 15 (Reuters) - American International Group , the insurer bailed out by the U.S. government in September, said on Monday it sold $39.3 billion of assets to a fund established by the Federal Reserve Bank of New York.

Breaking News-RTRS-UPDATE 1-Informa sees fewer U.S. corn acres in 2009

CHICAGO, Dec 12 (Reuters) - Analytical firm Informa Economics sees fewer U.S. corn acres for 2009 and more soybeans as the higher cost to plant corn versus soybeans was encouraging farmers to seed soy over corn, trade sources said on Friday.
Informa estimated U.S. corn acreage at 82.288 million and soybeans at 81.455 million, traders said.

Breaking News-RTRS-US Grain Week - Farmers on alert for price rallies in 2009

CHICAGO, Dec 12 (Reuters) - U.S. farmers will be on alert throughout the winter for any upticks in corn and soybean prices that could provide opportunities for them to sell crops they have been holding since harvest, grain dealers and agricultural economists said.

Breaking News-RTRS-UPDATE 5-Ecuador defaults, says to fight "monster" creditors

GUAYAQUIL, Ecuador, Dec 12 (Reuters) - President Rafael Correa declared a default on Ecuador's foreign sovereign bonds on Friday, vowing to fight "monster" debt-holders in court in one of most aggressive moves against investors in the region for years.
Correa, a U.S.-trained economist and ally of Venezuela's anti-U.S. President Hugo Chavez, refused to make a $31 million interest payment due on Monday on 2012 global bonds, saying the debt was contracted illegally by a previous administration.

Breaking News-RTRS-High valuations, earnings to hit Malaysia stocks-Citi

KUALA LUMPUR, Dec 15 (Reuters) - Malaysian equities, one of Asia's top performers, could fall a further 17 percent in 2009 due to sliding economic growth, and earnings of plantations and banks are at high risk, Citigroup said in a note.

Breaking News-RTRS-UPDATE 1-IMF: lower China growth, unprecedented slowdown

MADRID, Dec 15 (Reuters) - The IMF could cut its forecast for Chinese 2009 economic growth to around 5 percent in its next revision as the global economy suffers an unprecedented slowdown, IMF Managing Director Dominique Strauss-Kahn said on Monday.

Trader's Highlight

DJI-NEW YORK, Dec 15 (Reuters) - U.S. stocks stumbled on Monday, roiled by worries about how big a bite the global financial crisis has taken from banks' profits and fallout from a massive investment fraud scheme.

JPMorgan Chase & Co was the biggest drag on the Dow after Merrill Lynch cut the stock to an "underperform" rating and forecast a loss for the bank's fourth quarter.

Another blow to sentiment was concern about the financial sector's exposure to potential losses related to investment manager Bernard Madoff, who is accused by U.S. authorities of masterminding a $50 billion fraud.

The Dow Jones industrial average <.DJI> shed 65.15 points, or 0.75 percent, to end at 8,564.53. The Standard & Poor's 500 Index <.SPX> fell 11.16 points, or 1.27 percent, to 868.57. The Nasdaq Composite Index <.IXIC> dropped 32.38 points, or
2.10 percent, to 1,508.34.

NYMEX-NEW YORK, Dec 15 (Reuters) - U.S. crude oil futures fell on Monday, retreating from an early high above $50 a barrel as Wall Street slumped after a stronger open and refueled concerns about a slowing economy.

On the New York Mercantile Exchange, January crude fell $1.77, or 3.82 percent, to settle at $44.51 a barrel, trading from $44.24 to $50.05.

CBOT-SOYBEANS - January down 8 cents at $8.46 a bushel, March down 6-3/4 cents at $8.49-1/2 a bushel. Turned down when crude oil slipped and soyoil began falling

with additional pressure from trade reports on Friday that Informa Economics forecast 2009 U.S. soy acreage at 81.455 million, up from 75.9 million in 2008.

The National Oilseed Processors Association said November soybean crushings where 139.4 million bushels down from 143.4 million bushels in October.

CBOT-SOYOIL - January down 0.37 cent at 30.55 cents per lb, March down 0.37 at 30.91 cents a pound. Downturn in crude dragged soyoil lower.

U.S. soyoil stocks stood at 2.04 billion pounds, up from 1.98 billion pounds in October, the National Oilseed Processors Association said.

FCPO-JAKARTA, Dec 15 (Reuters) - Malaysian palm futures wiped out gains of 3 percent to end slightly lower on Monday, rattled by fears that exports to India will slow down, traders said.

The benchmark February palm oil contract on the Bursa Malaysia's Derivatives Exchange settled down 5 ringgit, or 0.32 percent, at 1,576 ringgit ($443) per tonne, after coming off a high of 1,630 ringgit.

Other traded contracts were mostly lower, falling between 5 ringgit and 40 ringgit. The overall volume stood at 6,891.

REGIONAL EQUITIES-BANGKOK, Dec 15 (Reuters) - Most Southeast Asian stock markets rose on Monday amid optimism about a U.S. car sector bailout and investors picked up blue chips in the region such as Singapore's UOB, Thailand's PTT and Indonesia's Bank Rakyat. Thai shares <.SETI> rose 2.89 percent.

Indonesia's main stock index <.JKSE> led the gains, climbing 7.63 percent on strong buying in bank stocks, while Singapore shares <.FTSTI> gained 1.98 percent.

In Kuala Lumpur, the main index erased its morning gain, closing 0.68 percent lower, weighed down by a 2.5 percent fall in Bumiputra Commerce Holdings Bhd .

FKLI Daily: trying hard to sustain

Market is trying hard to sustain following few attempts to violate 865 level was failed. As for now, we pegged the immediate support at 850-842 followed by 840-836.5. For upside, resistance is at 865 followed by 869.5-871.

KLSE Daily: losing strength

Market is losing strength following a negative close. Looks market may move sideways in near term market. We now look for the immediate support at 838-835. Fro upside, resistance is at 858-860 followed by 864-868.

DJI Daily: directionless

Market continue its sideways move and looks directionless. We look for the immediate resistance at 8827-8879. For downside, immediate support is pegged at 8347-8335.

FCPO Daily: tough resistance at 1700 mark

FCPO continue to struggle for survive after few attempts failed to breakthrough 1700 mark. As for now, we look for the immediate support at 1560-1556 followed by 1520-1500, For upside, immediate resistance is at 1650-1658 followed by 1666.