Trader's Comments: CPO futures ended in positive territory after recovered its earlier losses

CPO futures ended in positive territory after recovered its earlier losses on expectations of end Feb inventory likely to drawn down. Benchmark May09 hit intra day low of 1862 after opened RM25 lower at 1865, tracking the early losses of eCBOT soy oil and Dalian palm in Asian time trading. However, it managed to recoup some ground and climbed steadily through out most of the sessions. External factors had been quite bearish today as eCBOT soy oil and Dalian palm extended their overnight losses. News that China cancelled 2-3 cargoes (180k tonnes) of soybean from US had also further undermined the external vege oil market sentiment. Nevertheless, CPO market was still supportive as Benchmark May09 hit intra day high at 1919 in the afternoon session before it ended RM5 higher at 1895. Market talk that end Feb export data will be around 1.13-1.16 million tonnes had enhanced the confidence of traders as they believe that Feb end stocks will likely to drawn down due to anticipation of lower productions.

Breaking News-RTRS-Malaysia mini-budget could be 10-15 bln rgt-report

KUALA LUMPUR, Feb 27 (Reuters) - Malaysia could spend 10 billion ringgit to 15 billion ringgit (($2.73 billion-$4.09 billion) in its fiscal stimulus package, Trade Minister Muhyiddin Yassin said at the ASEAN summit in Thailand on Friday.

Trader's Highlight

DJI-NEW YORK, Feb 26 (Reuters) - U.S. stocks fell in volatile trading on Thursday as investors sold off shares of healthcare companies such as Merck & Co on worries that U.S. President Barack Obama's budget proposal will strangle profits.

The Dow Jones industrial average <.DJI> dropped 88.81 points, or 1.22 percent, to 7,182.08. The Standard & Poor's 500 Index <.SPX> shed 12.07 points, or 1.58 percent, to 752.83. The Nasdaq Composite Index <.IXIC> fell 33.96 points, or 2.38 percent, to 1,391.47.

NYMEX-NEW YORK, Feb 26 (Reuters) - U.S. crude oil futures gained sharply for the third day in a row on Thursday on continued gasoline strength after government data on Wednesday showed a surprise sharp drawdown in gasoline supplies last week.

On the New York Mercantile Exchange, April crude settled up $2.72, or 6.4 percent, at $45.22 a barrel, ending the highest since Jan. 26's $45.73. It traded from $42.27 to $45.30, the highest since Jan. 27's $47.49, after breaking through technical resistance at $44.

CBOT-SOYBEANS - March down 8-3/4 cents $8.69-1/4 a bushel.

Turns lower as disappointing exports and talk USDA's outlook for U.S. soybean stocks to build in 2009/10 weigh. Weak South American cash basis also weighed on soy. New-crop November held relatively firm on support from USDA's outlook for 2009 U.S. soy seedings.

Census said January soy crush 145.19 million bushels, slightly below estimates for 145.7 million.

More plantings will mean bigger 2009/10 U.S. soy carryout.

USDA at its annual outlook forum forecast 2009 U.S. soy plantings at 77 million acres versus 2008 plantings of 75.718 million. Traders expected at 2 million-3 million increase.

CBOT-SOYOIL - March down 0.26 cent at 31.64 cents per lb.

Turned lower as soybeans fell. Census stocks number bearish.

Census said end January soyoil stocks 2.929 billion lbs, above estimates for 2.874 billion.

FCPO-JAKARTA, Feb 26 (Reuters) - Malaysian palm futures gave up a nearly 2 percent gain to finish marginally lower on Thursday, as selling was sparked by falls in rival soybean prices, traders said.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange shed 4 ringgit, or 0.2 percent, to 1,890 ringgit ($515) a tonne, coming off an intra-day high of 1,930 ringgit.

Other traded contract were mixed, with some rising between 41 and 51 ringgit, while others fell between 3 and 15 ringgit. Overall volume was 11,973 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Feb 26 (Reuters) - Southeast Asian stocks weakened on Thursday, with Indonesia sinking to its lowest in more than two months on the back of weak results at Indosat, but Singapore ended nearly unchanged.

The main Thai stock index <.SETI> dropped 0.5 percent, Malaysia's key stock index <.KLSE> eased 0.3 percent, the Philippine index <.PSI> was down 0.4 percent and Vietnam's VNI index <.VNI> shed 0.7 percent.

DJI Daily: no improvement

Market remains weak. Immediate downside support is at 7100-7000. For upside, resistance maintain at 7400-7500.

KLSE Daily: holding well

Nothing much changes on the immediate technical landscape as market holding well. We maintain the upside resistance at 900-910. Downside support is at 883-880 (gap left over since 5/2/2009).

FKLI Daily: closer to 900 mark

Market missed 900 mark just by one point away. However, bull looks will not give up easily and likely to challenge again at 900 mark. Thus, we look for the upside resistance at 900-905 and downside support is pegged at 880-875.

FCPO Daily: may continue challenge at 1900 mark

Market again challenge 1900 mark yet still failed to sustain above it. Thus, we maintain the resistance at 1935-1950 followed by 1970-2000. Immediate support is pegged at 1881-1878(gap left over on 25/2/2009).

Trader's Comment: Palm oil futures surrendered all its earlier gains to end mix.

Palm oil futures surrendered all its earlier gains to end mix. The strong rally in overnight CBOT soy oil and NYMEX crude oil leads to Benchmark May09 opened RM36 higher at 1930. However, due to lack of follow through buying activities, CPO prices began to lose its momentum gradually through out the day. It managed to close at 1901 before lunch break. 1900 level was unable to sustain and it fell to intra day low of 1882 in the afternoon session. It then hovered between 1890-1900 level before it finally settled RM4 lower at 1890. Both eCBOT soy oil and Dalian palm had encountered profit-taking activities and ended with losses after their previous session’s gains. Overall, traders were not in the buying mood yet as they cautiously waiting for any fresh leads from the upcoming Price Outlook Conference which will be held next month.

Breaking News-RTRS-UPDATE 2-Chinese buyers renege on some US soybeans

SINGAPORE, Feb 25 (Reuters) - Chinese importers have cancelled at least 3 cargoes totalling 180,000 tonnes of U.S. soybeans as the world's biggest buyer turns to cheaper cargoes from South America and domestic soymeal prices decline. Traders said there could be more soy deals in trouble, including some cargoes already afloat after China made strong purchases of the oilseed in the last few months.

Trader's Highlight

DJI-NEW YORK, Feb 25 (Reuters) - U.S. stocks fell on Wednesday after U.S. President Barack Obama warned of stricter oversight for Wall Street, raising the specter of greater regulation that investors fear could sap profits.

Obama's comments near the market close rattled investors when he said financial institutions that pose a serious risk to markets should be subject to serious government supervision.

The Dow Jones industrial average <.DJI> was down 80.05 points, or 1.09 percent, at 7,270.89. The Standard & Poor's 500 Index <.SPX> was down 8.24 points, or 1.07 percent, at 764.90. The Nasdaq Composite Index <.IXIC> was down 16.40 points, or
1.14 percent, at 1,425.43.

NYMEX-NEW YORK, Feb 25 (Reuters) - U.S. crude oil futures ended more than 6 percent higher on Wednesday, supported by a rally on gasoline futures after data showed gasoline inventories dropped much more than expected last week.

On the New York Mercantile Exchange, April crude settled up $2.54, or 6.36 percent, at $42.50 a barrel, trading from $39.40 to $42.80. It was the highest settlement since Feb. 6, when front-month crude ended at $40.17.

CBOT-SOYBEANS - March down 3 cents at $8.78 per bushel. Firm dollar and news China canceling cargoes of U.S. soy, likely switching business to Brazil, weighed on prices.

CBOT-SOYOIL - March up 1.39 cents at 31.90 per lb. Gained on hopes for increased usage of soyoil in potential growth of U.S. biodiesel industry and gains in crude oil.

FCPO-JAKARTA, Feb 25 (Reuters) - Malaysian palm futures rose 1.2 percent on Wednesday to finish at a one-week high on the back of good export data and helped by a rally in global stock markets, but the upside was capped by profit-taking, traders said.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange rose 23 ringgit, or 1.2 percent, to 1,894 ringgit ($516) per tonne, after rising as high as 1,912 ringgit early.

Other traded contracts rose between 20 and 27 ringgit. Overall volume was 11,509 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Feb 25 (Reuters) - Southeast Asian stocks posted small gains on Wednesday, with an interest rate cut pushing big-cap energy and telecom shares up in Thailand, and a cut in Malaysia pushing stocks there to the highest in nearly a week.

Malaysia <.KLSE> gained 0.3 percent, with Telekom Malaysia up 6.6 percent. The stock had surged 12.6 percent in early trade after the company said it would return 3.5 billion ringgit ($955 million) to stockholders.

Asian stocks elsewhere edged up as reassuring comments from Federal Reserve Chairman Ben Bernanke sparked a rebound in financial shares. In Singapore, the main stock index <.FTSTI> ended up 0.15 percent. Indonesian shares <.JKSE> were up 0.33 percent, the Philippine index <.PSI> added nearly 1 percent and Vietnamese shares <.VNI> surged 3.8 percent.

DJI Daily: remains weak

Market atmosphere remained bearish. As for now, look for the immediate downside support at 7100-7000. For upside, resistance maintain at 7400-7500.

KLSE Daily: struggling

We maintain the upside resistance at 900-910. Downside support is at 884-880 (gap left over on 6/2/2009).

FKLI Daily: 900 mark can comes?

Market remained steady and looks may want to challenge 900 mark in near term.We maintain the upside resistance at 895-900 and downside support is pegged at 875-870.

FCPO Daily: may continue to challenge 1900 mark

Market momentum has improved despite close below 1900 mark after tested 1900-1910 in intra-day basis. Market looks may continue to challenge 1900 mark in near term. Thus, we are now looking for the resistance at 1935-1950 followed by 1970-2000. Immediate support is pegged at 1881-1878(gap left over on 25/2/2009).

Trader's Comment: CPO futures finished generally higher on strong export figures.

CPO futures finished generally higher on strong export figures. Benchmark May09 opened RM19 higher at 1890 following overnight gains in CBOT soy oil after the farmer strike in Argentina and also the rally of crude oil. It almost covered its yesterday’s left over gap, when it then fell to intra day low of 1881. However, FCPO prices were quick to rebound and started to climb steadily through out the day. eCBOT soy complex edged higher in Asian time trading and Dalian palm also ended higher. Private cargo surveyor ITS recorded a 5% increase of 1-25 Feb export data, while SGS posted a slight decrease. With these numbers, traders were still firm on FCPO market as they believe that palm oil stocks level will still remained low due to lower production. Benchmark may09finally settled RM23 higher at 1894 after it hit intra day high of 1912 in the afternoon session.

Breaking News-RTRS-UPDATE 1-Indonesia keeps March palm oil export tax at zero

JAKARTA, Feb 25 (Reuters) - Indonesia maintained its zero percent palm oil export tax in March, while cutting the crude palm oil base export prices to $480 a tonne, from $482 a tonne in February, a trade ministry official said on Wednesday.

Breaking News-RTRS-China's US soybean purchasing may drop - Oil World

HAMBURG, Feb 24 (Reuters) - Heavy recent Chinese soybean buying, especially from the United States, may start to decline as Chinese domestic prices are falling, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
Prices on the Chinese soy market have recently been held stable by the government's policy of building up stocks and making major import purchases to cushion the impact of lower than expected domestic production following China's drought, it said.

Breaking News-RTRS-Bernanke: Recession will likely end in '09

(USD) Fed Chair Bernanke says the recession will likely end in '09 with
recovery in '10, only if official actions succeed. Says economy 'severe
contraction' likely continued in Q1'09. Due to lower commodity prices, sees
substantial lessening of infl pressure. Says the public-private program to buy
bad bank assets will take a little time to set up. Says preferred convertible
shares will be turned into common, if losses build up. Also says the Fed is
working toward a uniform mortgage renegotiation approach for MBS it owns, but
it remains tricky.

Breaking News-RTRS-Argentine soy market halted for 2nd day by strike

BUENOS AIRES, Feb 23 (Reuters) - Argentina's soy market was paralyzed on Monday, the second day of a commercial strike by farmers against government tax and agricultural policies.
The halt in sales is due to be lifted at midday Tuesday as farm groups prepare for negotiations with the government.

Breaking News-RTRS-UPDATE 2-Malaysia cuts key rate again as recession looms

KUALA LUMPUR, Feb 24 (Reuters) - Malaysia cut its key interest rate on Tuesday for a third straight meeting and pledged more measures to ensure access to credit and to ward off recession risks plaguing the export-dependent country.
Bank Negara Malaysia (BNM) cut its key overnight policy rate by 50 basis points to 2.00 percent.

Trader's Highlight

DJI-NEW YORK, Feb 24 (Reuters) - U.S. stocks rose more than 3 percent on Tuesday to snap back from 12-year lows, after Federal Reserve Chairman Ben Bernanke delivered a big dose of relief when he signaled that nationalization of big banks was not at hand.

Bernanke said the significant value built up in the country's banks would be lost if they were government-owned, easing investor fears that shareholders would be wiped out if the banks were taken over.

The Dow Jones industrial average <.DJI> rose 235.76 points, or 3.31 percent, to 7,350.54. The Standard & Poor's 500 Index <.SPX> gained 29.69 points, or 3.99 percent, to 773.02. The Nasdaq Composite Index <.IXIC> added 54.11 points, or 3.90
percent, to 1,441.83.

NYMEX-NEW YORK, Feb 24 (Reuters) - U.S. crude oil futures were steady at higher levels late on Tuesday, after the industry group American Petroleum Institute showed reported a rise in domestic crude stocks last week that was less than expected.

Crude futures had settled up nearly 4 percent, aided as Wall Street rebounded from a 12-year low the previous session.

On the New York Mercantile Exchange at 5 p.m. EST (1700 GMT), April crude was up $1.52, or 3.95 percent, at $39.96. It earlier settled at the same level, after trading from $37.65 to $40.13.

CBOT=SOYBEANS - March up 8-1/4 cents at $8.81 per bushel.

Rally in stock market and crude oil in addition to concerns about a farmer strike in Argentina boosted soybeans as did talk of fresh buying interest by China.

CBOT-SOYOIL - March up 0.20 cent per lb at 30.51 cents. Gains in crude oil, stock market and higher close in soy supported soyoil.

FCPO-JAKARTA, Feb 24 (Reuters) - Malaysian palm futures bounced back after losing nearly 3 percent earlier in the day to finish flat on Tuesday on hopes that palm export data due to be released this week would show strong demand, traders said.

There was speculation late in the day that cargo surveyor Intertek Testing Service may put Feb.1-25 exports at 1.06 million tonnes, up from 952,000 tonnes shipped out in the same period a month earlier, another Malaysian trader said.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange dropped 9 ringgit, or 0.5 percent, to 1,871 ringgit ($510) per tonne, after dropping as low as 1,828 ringgit.

Other traded contracts rose between 9 and 105 ringgit. Overall volume was 13,476 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Feb 24 (Reuters) - Southeast Asian stocks fell on
Tuesday as growing concerns about the global financial system pushed Thai stocks down to a one-month low and depressed financial shares in Singapore.

Malaysia closed up 0.7 percent, ending two days of falls, before the country's central bank announced a half-point interest rate cut to 2 percent.

Singapore's index <.FTSTI> ended down 1.0 percent, erasing much of a 2.2 percent rise on Monday

DJI Daily: Bear took a breathe

Bear took a little breathe after the recent sharp drop. However, market outlook remains cautious and bearish. Downside support remains at 6900-6300. For upside, resistance maintain at 7800-7900.

KLSE Daily: Malaysia Boleh

Lets shout for 'Malaysia Boleh' as market ended good despite most regional market fell. We maintain the upside resistance at 900 mark. Downside support is at 884-880 (gap left over on 6/2/2009).

FKLI Daily: tracking gain on KLCI

Market recouped from its earlier losses to end generally higher as tracking gain on KLCI. We maintain the upside resistance at 895-900 and downside support is pegged at 865-858.

FCPO Daily: remains range bound mode

Market tested the immediate support at 1830 in intra-day basis and able to sustain. Thus, market likely to move in range of 1800-1900 in near term. We continue to look for the resistance at 1900-1910. Support is pegged at 1798-1790 (gap left over on 4/2/2009).

Trader's Comment: Palm oil futures recovered some of its losses to end off low on expectations of good export figures.

Palm oil futures recovered some of its losses to end off low on expectations of good export figures. Overnight NYMEX crude oil slid lower due to Dow Jones fell to 12 year low had triggered some aggressive selling activities during opening bell which sent Benchmark May09 to intra day low at 1828 after opened RM21 lower at 1859. However, the sold down was short lived as CPO prices didn’t go down any further and was well supported at 1830 level. It then started to climb back slowly through out the rest of the day, despite other vege oil market showed some losses. Market talk that 1-25 Feb export numbers likely to be better than same period in Jan (ITS-952T ; SGS-1,016T) prompted more buying activities in the afternoon session. Benchmark may09 hit the intra day high of 1878 before it finally settled RM9 lower at 1871, while other traded contract months had gained between RM10 to RM20.

CPO Tender Summary and Delivery Location as at February 2009

Breaking News-RTRS-UPDATE 1-Malaysia keeps more palm on ships as demand drags

KOTA KINABALU, Malaysia, Feb 23 (Reuters) - Malaysia's top palm oil producing state is storing at least 300,000 to 350,000 tonnes of the vegetable oil in ships as global demand drags, industry sources said on Monday. "Ideally, lean production means that less palm oil will be placed on the ships but demand has not been so good either. We don't have enough storage tanks in Sabah (state)," said a trading source familiar with the move at the state capital.
Although Eastern Sabah state on Borneo Island accounted for 35 percent of Malaysia's total palm output of 17.7 million tonnes last year, storage space has not kept up.
Traders said the state has 400,000-500,000 tonnes of palm oil storage capacity while its stockpiles range between 500,000 and 750,000 tonnes a month.
There are construction delays to palm oil storage tank at Lahad Datu port, which suggests there is no signs of easing supply bottlenecks

Breaking News-RTRS-S'pore GDP could shrink by over 5 pct in '09 - PM

SINGAPORE, Feb 23 (Reuters) - Singapore's economy could contract by more than a government forecast of between -2 and -5 percent this year if the global economy continues to shrink, the Business Times quoted Prime Minister Lee Hsien Loong as saying.

Trader's Highlight

DJI-NEW YORK, Feb 23 (Reuters) - Wall Street slumped to a 12-year low on Monday as investors lost faith that the U.S. government will be able to stabilize the financial system.

Adding to the bleak picture, CNBC reported that insurer American International Group could be forced into bankruptcy if new rescue talks with the government fail to secure it more funding.

The Dow Jones industrial average <.DJI> tumbled 250.73 points, or 3.40 percent, to 7,114.94. The Standard & Poor's 500 Index <.SPX> dropped 26.71 points, or 3.47 percent, to 743.34. The Nasdaq Composite Index <.IXIC> skidded 53.51 points, or 3.71 percent, to 1,387.72.

NYMEX-NEW YORK, Feb 23 (Reuters) - U.S. crude oil futures ended nearly 4 percent lower, sliding with Wall Street on concerns about the economy amid uncertainty about government steps to save ailing banks.

On the New York Mercantile Exchange new front-month April crude settled down $1.59, or 3.97 percent, at $38.44 a barrel, trading from $37.87 to $41.49.

CBOT-SOYBEANS - March up 10-1/4 at $8.72-3/4 a bushel.

Mild rebound after last week's slide to two-month low. Traders watching Dow for direction amid reports U.S. government may take a bigger stake in Citigroup.

CBOT-SOYOIL - March up 0.09 cent at 30.31 cents per lb. Following soybeans.

FCPO-JAKARTA, Feb 23 (Reuters) - Malaysian palm futures finished 2.5 percent higher on Monday to end a five-day losing streak, underpinned by a rally in rival soybean prices, traders said.

The benchmark May contract rose 45 ringgit, or 2.5 percent, to 1,880 ringgit ($515) per tonne.

Other traded contracts rose between 15 and 26 ringgit. Overall volume was 12,382 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Feb 23 (Reuters) - Major Southeast Asian stocks rose
on Monday, with Singapore leading gainers thanks to financials and big caps such as DBS Group and Singapore Telecom, while gains in telecom shares helped Indonesia end a two-day fall.

Singapore's index <.FTSTI> jumped 2.2 percent with top lender DBS Group
rising 1.1 percent and telecom firm Singapore Telecom climbing 4.2 percent.

Malaysian stocks <.KLSE> inched down 0.2 percent, weighed down by palm planters, with second-largest palm oil producer IOI Corp down 1.6 percent after a drop in second-quarter net profit and a warning about full-year results.

DJI Daily: Where is the bottom?

Market slumped to a 12-year lows had dampened further the already weak daily technical outlook. We expect more downside room in near term following the violation of the underline support at 7197. We are now looking for the downside support at 6900-6300. For upside, resistance is at 7800-7900.

KLSE Daily: may cover downside gap at 884-880

Market remained in sideways move and holding above 880 mark. However, market looks a little tired to maintain its recent posture. It may want to cover the downside gap at 884-880 (gap left over on 6/2/2009)followed by the next support at 868-867. Upside resistance is at 900 mark.

FKLI Daily: Upside not convincing

Market recovered a little from last week losses yet failed to reach 900 mark. We are now looking for the upside resistance at 895-900. While, downside support is pegged at 865-858.

FCPO Daily: in range trading

Market stuck in the range of 1800-1900 level. The breakout of either one may give us more clearer direction in near term market. We are now looking for the resistance at 1900-1910. Support is maintain at 1830 followed by 1798-1790 (gap left over on 4/2/2009).

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.

Trader's Comment: Unexpected of the late sell off dragged prices to close at negative territory.

Unexpected of the late sell off dragged prices to close at negative territory. Initially it opened lower tracking overnight losses in CBOT and NYMEX crude oil. Benchmark may09 slid to hit intra day low at 1830 and looks well supported as again bargain hunting buying and covering interest were seen. Later it hovered between 1840-1860 before the late short covering activities emerged on export talk. Talks that 1-20 Feb export numbers likely to be about the same compare to last month same period prompting aggressive short covering and sent May09 price rebounded to hit intra day high at 1894. However, a late sell down at the close dragged prices back to the negative territory to close at 1860, down RM 15. FCPO price looks quite resilience despite the recent sharp falls in soy oil prices in CBOT. Total daily volume remained heavy with 22,439 contracts changed hands.

Breaking News-RTRS-Malaysian palm oil stocks to stay low - Oil World

HAMBURG, Feb 17 (Reuters) - Palm oil stocks in key exporter Malaysia are likely to remain below last year's levels for most of 2009, oilseeds analysts Oil World forecast on Tuesday.
But the higher palm oil prices generated by lower stocks could mean buyers seek alternative edible oils, it added.
"We expect Malaysian palm oil stocks to remain below last year's level at least until September, but probably until December 2009," it said. "Malaysian production is likely to be curbed in calendar year 2009 by reduced yields."
Palm oil prices have risen relative to other vegetable oils recently because of strong export demand partly due to the sharp decline in export supplies of soyoil, it said.
"As a result, Malaysian palm oil stocks showed an unprecedented decline of 0.43 million tonnes from Dec 1 until end Jan 2009 to 1.8 million tonnes," it said.

Breaking News-RTRS-Argentina sees 2008/09 soy area 17 mln hectares

BUENOS AIRES, Feb 18 (Reuters) - Argentina estimates the area planted in the 2008/09 soy season at 17 million hectares versus 16.5 million a month ago, the government said in a report on Wednesday.

Trader's Highlight

DJI-NEW YORK, Feb 18 (Reuters) - The S&P 500 and Nasdaq closed marginally lower on Wednesday as President Barack Obama's $275 billion plan to prop up the housing market failed to stem worries about the economy, and bleak housing data highlighted the deepening recession.

Indexes see-sawed in a narrow range throughout the day, but the S&P and Nasdaq ultimately failed to hold gains despite bargain-hunting that sent investors to the perceived safety of defensive stocks, such as technology and consumer staples.

The Dow Jones industrial average <.DJI> added 3.03 points, or 0.04 percent, to 7,555.63. The Standard & Poor's 500 Index <.SPX> was off 0.75 points, or 0.10 percent, to 788.42. The Nasdaq Composite Index <.IXIC> edged down 2.69 points, or 0.18 percent, at 1,467.97.

NYMEX-NEW YORK, Feb 18 (Reuters) - U.S. crude oil futures were little changed in post-settlement trading on Wednesday after the industry group American Petroleum Institute reported a lower-than-expected build in crude stocks last week.

On the New York Mercantile Exchange at 4:50 p.m. (2150 GMT), March crude was down 34 cents, or 0.97 percent, at $34.59 a barrel. It had settled down 31 cents, or 0.89 percent, at $34.62, after trading from $34.16 to $36.22. The March crude

CBOT-SOYBEANS - March down 15-1/2 at $8.87-1/2 per bushel. Late fund selling amid concerns about waning demand amid global economic recession weighs on market as did improved crop weather in Argentina. March fell to near two-month low.

CBOT-SOYOIL - March down 0.73 cent at 30.42 cents per lb. Market turns lower as soybeans decline.

FCPO-JAKARTA, Feb 18 (Reuters) - Malaysian palm futures recovered nearly two-thirds of the day's loss after tumbling to nine-day lows on short-covering, but still finished in the red for a third straight day on Wednesday, traders said.

The benchmark May contract fell 20 ringgit, or 1.1 percent, to 1,875 ringgit ($513) per tonne, having gone down as low as 1,842 ringgit, the level unseen since February 6.

Other traded contracts fell between 16 and 34 ringgit <0#KPO:>. Overall volume was 13,076 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Feb 18 (Reuters) - Southeast Asian stocks were mixed
on Wednesday, with Singapore recouping early losses to end almost 1 percent higher on gains in SingTel and other big caps while Malaysia hit its lowest in almost two weeks, pulled down by plantation stocks.

Singapore's benchmark index <.FTSTI> gained 0.8 percent, with Singapore Telecommunications , Southeast Asia's largest phone firm, up 1.2 percent, while Malaysia's index <.KLSE> fell 0.4 percent, with planter IOI Corp off 3.1 percent.

DJI Daily: maintain downside momentum

Market looks weak and ugly as prices seem losing ground towards the downside. We maintain the immediate support at 7449 followed by 7197 (low since 31/12/2002). For upside, resistance is at 8000-8300.

KLSE Daily: Capped in range bound mode

Market retreated and looks market may cap in the range of 880-900 in near term.

FKLI Daily: 880 mark defended well

Market is losing ground yet 880 level looks defended well. We are now looking for the support at 880-878 (gap left over on 6/2/2009) followed by 860-865. While, resistance is at 900-905.

FCPO Daily: Correction phase may continue

Market looks toppish following the formation of double top. Correction phase may extend in near term. We now looking for the resistance at 1892-1887 (gap left over on 18/2/2009). Support is pegged at 1800-1790 followed by 1740-1720.

Trader's Comment: Palm oil futures recouped some of its earlier losses on late covering to end off low.

Palm oil futures recouped some of its earlier losses on late covering to end off low. Benchmark May09 initially opened RM50 lower at 1845, tracking overnight CBOT soy oil’s heave loss. It managed to climb to 1879 only, failed to cover its yesterday’s left over gap, and then fell again to intra day low at 1842 before lunch break. Local CPO market seems to remain supportive above 1800 level as there were no signs of aggressive selling activity despite the extremely bearish external factors, especially with Dalian palm trading at limit down prices through out the whole day, while eCBOT also edged lower. Benchmark May09 began to hover between 1842-1870 level through out the afternoon session, before some late covering activities emerged and pushed CPO prices to intra day high of 1887, before it finally settled RM20 lower at 1875.

Trader's Highlight

DJI - NEW YORK, Feb 17 - The accelerating global economic downturn unnerved world markets on Tuesday, sending U.S. stocks to their lowest point since November's bear market lows and driving the price of gold to a seven-month high.

Deepening concerns about worldwide economic growth and the global banking system, in particular, sent investors scurrying to the relative safety of gold and government debt.

The Dow Jones industrial average closedddown 297.81 points, or 3.79 percent, at 7,552.60. The Standard & Poor's 500 Index fell 37.67 points, or 4.56 percent, at 789.17. The Nasdaq Composite Index shed 63.70 points, or 4.15 percent, at 1,470.66.

NYMEX - NEW YORK, Feb 17 - U.S. crude futures tumbled on Tuesday, ceding most of Friday's gains as demand worries amid a recession-hit economy again weighed on oil prices.

On the New York Mercantile Exchange, March crudesettled down $2.58, or 6.88 percent, at $34.93 a barrel, trading from $34.45 to $38.49. The March crude contract's lifetime low is $33.55. The contract expires on Friday.

CBOT - SOYBEANS - March down 52-1/2 cents at $9.03 a bushel. Hit by falling stock markets and crude oil and gains in the dollar. Forecasts for Argentina to see more rain late this week also bearish.

CBOT - SOYOIL - March down 1.85 cents at 31.15 cents per lb. Pressured by lower crude oil, falling stock markets and declines in soy futures.

FCPO - JAKARTA, Feb 17 - Malaysian crude palm futures dropped for the second day in a row on Tuesday, to finish at a one-week low amid concerns over weaker exports, traders said.

"I think the market is expecting the end stocks this month could rebuild above the January figure because of slow exports, unless production drop sharply," a trader at a Malaysian commodities brokerage said.

The benchmark May contract fell 27 ringgit, or 1.4 percent, to 1,895 ringgit ($521) per tonne, the lowest level since February 10.

REGIONAL EQUITIES - BANGKOK, Feb 17 - Southeast Asian stock markets slumped on Tuesday as dismal Japanese growth data and concern about the financial sector fanned worries about the global economy.

Singapore's Straits Times Index extended recent falls to close down 2.55 percent after hitting its lowest level since Nov. 24. It was also weighed down by a record slump in Singapore's non-oil exports in January.

Thailand fell nearly 2 percent, while Indonesia dropped 1.8 percent, ending a three-day winning streak.

Trader's Comment: CPO futures ended below 1900 level after a choppy trading in range bound mode.

CPO futures ended below 1900 level after a choppy trading in range bound mode. Market sentiment had remained uncertain with easier tone through out the day as traders were cautiously awaiting for fresh leads. This caused Benchmark May09 to hover between 1935-1895 level after it opened RM13 lower at 1909, tracking the eCBOT and Dalian palm that edged down through out the day. CPO prices were seen struggling to hold at 1900 level and was tested several times. Nevertheless, the last wave of selling activity in late trading sent Benchmark May09 to hit intra day low at 1892 before it finally settled RM27 lower at 1895.

Trader's Highlight

FCPO-JAKARTA, Feb 16 (Reuters) - Malaysian crude palm futures retreated from a five-week high to finish 3.6 percent lower on Monday as news of weak exports sparked profit-taking, traders said.

The day also saw trading briefly suspended due to a technical glitch.

The benchmark May contract fell 72 ringgit or 3.6 percent to 1,922 ringgit ($532) per tonne, after going as high as 2,017 ringgit, the highest since Jan. 7.

REGIONAL EQUITIES-BANGKOK, Feb 16 (Reuters) - Most Southeast Asian stock markets fell on Monday as fears of a worsening global recession continued to stifle demand for equities, dragging down financial shares such as Singapore's DBS and Thailand's Bangkok Bank.

Singapore's Straits Times Index <.FTSTI> led the losers, falling 1.3 percent after posting a 1.2 percent gain last Friday, with banking and commodity blue chips leading decliners.

Malaysian shares <.KLSE>, the best performers in the region so far this year, ended 0.3 percent lower, while the Philippines <.PSI> eased 0.2 percent and Vietnam <.VNI> dropped 0.8 percent, at one stage hitting its lowest since October 2005. Thai stocks <.SETI>, however, bucked the trend to rise 0.2 percent and Indonesian shares <.JKSE> gained 0.24 percent.

KLSE Daily: Steady

Market remains steady and moving in tight range. We look for the resistance at 910-920. Downside support is at 895-890.

FKLI Daily: Struggling above 900 mark

Market continue to hold ground above 900 mark. We now looking for the upside at 920-925. Support is at 885-880.

FCPO Daily: Tough resistance at 2058

Market surrendered all its earlier gain after failed to sustain above 2000 mark. Upside resistance at 2058 looks tough to test. Thus, market may retreat after the recent rebound. We are now looking for the downside support at 1907-1900 followed by 1860-1850.

Trader's Comment: Palm oil futures surrendered its earlier gains on weaker export figures.

Palm oil futures surrendered its earlier gains on weaker export figures. Benchmark May09 fell to 1971 after it opened almost unchanged, following the release of export data last Saturday by private cargo surveyor, ITS which reported a decline of nearly 12%. Initially it was still well supported as it rebounded again to a new recent high at 2017 before trading on BMD halted by midday on technical problem. Nevertheless, market sentiment in the afternoon session immediately changed when another private cargo surveyor SGS released its export data which also reported a lower by 13%. Benchmark May09 was unable to hold and immediately fell to the low of 1932. It then bounced back to hover between 1948-1968, before another wave of late selling activity emerged which hammered the prices down to 1920 and settled RM72 lower at 1922. There was no trading in eCBOT today as US markets are closed on Monday for the President’s Day.

Breaking News-RTRS-UPDATE 1-Argentine farm groups say postpone strike

BUENOS AIRES, Feb 12 (Reuters) - Argentine farms groups said on Thursday they postponed a planned strike against government agricultural policies and appealed to President Cristina Fernandez to hold talks aimed at ending the standoff.

Trader's Highlight

DJI-NEW YORK, Feb 13 (Reuters) - Hopes for the implementation of government stimulus packages rekindled some global appetite for risk on Friday, encouraging investors to move out of safe-haven government bonds and gold, although Wall Street slipped on renewed banking sector fears.

The Dow Jones industrial average <.DJI> finished down 82.35 points, or 1.04 percent, at 7,850.41, while the Standard & Poor's 500 Index <.SPX> lost 8.35 points, or 1.0 percent, at 826.84. The Nasdaq Composite Index <.IXIC> declined 7.35 points, or 0.48 percent, at 1,534.36.

NYMEX-NEW YORK, Feb 13 (Reuters) - U.S. crude oil futures ended up more than 10 percent on Friday, on hopes that passage of a U.S. economic stimulus package expected to be completed later in the day will help halt an oil demand slowdown.

On the New York Mercantile Exchange, March crude settled up $3.53, or 10.39 percent, at $37.51 a barrel, trading from $33.81 to $38.25. For the week, the contract was down $2.66, or 6.62 percent.

NYMEX April crude ended at $41.97, down 20 cents, or 0.47 percent, its premium over March crude shrinking to $4.46, from $8.19 at the close on Thursday.

NYMEX will be closed on Monday for the U.S. Presidents Day holiday and will reopen on Tuesday. Electronic trading on CME Globex and NYMEX Clearport are unaffected and will run on the
normal schedule.

CBOT-SOYBEANS - March down 13 cents to $9.55-1/2 a bushel.

Turned lower as rain forecast for Argentine triggering sales. Also bearish was Argentine farmers postponing strike against the government -- a move that could have impacted exports.

National Oilseed Processors Association to issue January crush data on Tuesday.

CBOT-SOYOIL - March up 0.17 cent to 33.00 cents a lb. Firm, gaining on soymeal after palm oil rallies.

FCPO-KUALA LUMPUR, Feb 13 (Reuters) - Malaysian crude palm futures jumped as much as 3.7 percent to hit 5-week highs on Friday as investors took positions on fears drought conditions may worsen in rival soyoil-producing Argentina.

Benchmark April contract settled up 67 ringgit at 1,995 ringgit ($552.3) per tonne, after going as high as 2,000 ringgit, a level unseen since Jan. 7.

Other traded contracts gained between 25 and 130 ringgit <0#KPO:>. Overall volume shot up to 15,176 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Feb 13 (Reuters) - Most Southeast Asian stock
markets turned higher on Friday, led by financials and property shares such as UOB and Capitaland, with the Thai market also helped by demand for energy blue chips.

Singapore's Straits Times Index <.FTSTI> rose 1.2 percent, Indonesia <.JKSE> climbed about 1 percent, Thailand <.SETI> added 1.2 percent and Malaysia <.KLSE>, the best performer in the region so far this year, was up 1.7 percent.

DJI Weekly: Tight range trading likely to continue

Market likely to continue its range trading in near term. We are now looking for the resistance and support at 8300-8400 and 7449 level respectively.

KLSE Weekly: Sideways to bias upside potential

Market violated the 900 mark and stayed firm. Looks market may continue to move sideways to bias upside potential with upside resistance is now looking at 920-925 followed by 936. Downside support is pegged at 874-868.

FKLI Weekly: 900 mark manage to hold?

Market tried hard to sustain above the 900 mark. Immediate technical outlook looks little improving following another week of good closing. However, market need to gather more effort in order to continue survive above 900 mark. For now, we look at the resistance at 925-927 followed by 937. while, downside support is at 875-870.

FCPO Weekly: Holding firm with bias upside potential

Market tested the 2000 mark after violated the resistance at 1998 had strengthened further the technical landscape. Market looks may want to continue challenge the upside target at 2058 in near term. For downside, support is pegged at 1740-1720.

Trader's Comment: The return of BULL

The “bull” fiercely returned again as it touched 2000 level amid previous short sellers aggressively covered their position after got caught on squeeze. Benchmark Apr09 opened RM9 higher at 1937 and rallied all the way up through out the day, tracking the improving external factors as eCBOT soy oil and Dalian palm rose steadily after bouncing back from their overnight losses. The plan to protest by Argentine farmers and coupled with some weather concern had also prompted traders to speculate on the CPO prices. Technical buying also helped to push the market after 1900 level was defended well during the last couple of trading days. Benchmark Apr09 hit the intra day high at 2000 before it finally settled RM67 higher at 1995.

Breaking News-RTRS-Argentine farm groups to meet, map out protests

BUENOS AIRES, Feb 12 (Reuters) - Argentine farmers, locked in a long-running dispute with the government over farm policies, will meet Thursday to finalize plans for fresh protests that are not expected to affect soy exports.

Trader's Highlight

DJI-NEW YORK, Feb 12 (Reuters) - U.S. stocks staged a late rally to close mostly higher on Thursday after Reuters reported the Obama administration was working on a program to subsidize mortgage payments for troubled homeowners.

The S&P 500 and Nasdaq ended higher while the Dow industrials retraced losses to close slightly lower as investors starved for good news bet the government had taken a big step toward stabilizing the housing market.

The Dow Jones industrial average <.DJI> shed 6.77 points, or 0.09 percent, to end at 7,932.76. The Standard & Poor's 500 Index <.SPX> added 1.45 points, or 0.17 percent, to 835.19. The Nasdaq Composite Index <.IXIC> rose 11.21 points, or 0.73 percent, to 1,541.71.

NYMEX-NEW YORK, Feb 12 (Reuters) - U.S. crude oil futures fell for the fifth straight session on Thursday, sliding to the lowest settlement in nearly two months as oil demand worries persisted a day after government data showed U.S. crude
supplies rose sharply last week.

On the New York Mercantile Exchange, March crude settled down $1.96, or 5.45 percent, at $33.98 a barrel, the lowest settlement since Dec. 19's $33.87. It traded from $33.55 -- a new contract low and lowest since Jan. 20's $32.70 -- to $36.25.

CBOT-SOYBEANS - March down 9-1/2 cents at $9.68-1/2 a bushel.

Improved crop weather this week in Argentina, firm dollar, lower crude oil and falling stock market adds pressure with market underpinned by big U.S. soy exports.

USDA baseline report pegged 2009 soy acres 74.0 million, down from 75.7 million last year. Soy production for 2009 forecast 3.110 billion bushels, up from 2.959 billion.

Drier and hotter weather expected to increase stress on Argentine crops over the next 5-7 days especially in areas that did not receive rainfall this week.

CBOT-SOYOIL - March down 0.35 cent at 32.83 cents a pound. Falling crude oil weighs on soyoil prices.

FCPO-KUALA LUMPUR, Feb 12 (Reuters) - Malaysian crude palm futures were mostly little changed on Thursday as fears of weakening demand in coming weeks pared earlier gains from falling domestic inventories.

Benchmark April contract on Bursa Malaysia Derivatives Exchange settled up 3 Malaysian ringgit to 1,928 Malaysian ringgit ($534.2) after going as high as 1,945 ringgit.

Other traded contracts mostly fell marginally, although the Sept. contract edged higher <0#KPO:>. Overall volume stood at 10,276 lots of 25 tonnes.

REGIONAL EQUITIES-BANGKOK, Feb 12 (Reuters) - Most Southeast Asian stock markets fell on Thursday as investors offloaded financials such as Singapore's United Overseas Bank and Malaysia's Bumiputra as the latest U.S. moves to tackle the financial crisis left investors cold.

Singapore led the regional losses, with the Straits Times Index <.FTSTI> closing down 2.15 percent, erasing recent gains.

Malaysian shares <.KLSE> also fell for a second day, down 0.3 percent, with Sime Darby Bhd losing 1.7 percent.

FCPO Daily: 1900 mark defended

1900 mark continue to provide support and looks market may extend its tight range trading again. We are now looking the upside resistance at 1967-1969 followed by 1981-1998. Downside support is pegged at 1900-1880 followed by 1860-1850.

Trader's Comment: Palm oil futures ended mix to easier on a range trading day.

Palm oil futures ended mix to easier on a range trading day. Benchmark Apr09 had been hovering between day high 1945 and day low 1907 through out the day, before it finally settled RM3 higher at 1928. Fourth contract month (May09) settled RM5 lower at 1915 after trading within 1935 to 1900. Market sentiment was mix as eCBOT soy complex edged higher in the earlier trade but surrendered its gains again in the last hour of trading, while Dalian palm extended its yesterday’s losses. Trading was rather quiet with overall volume declined to only 10,276 contracts changed hands as traders were cautiously waiting for any fresh leads. Market may want to consolidate after the recent rally. The fall of overnight NYMEX crude oil and CBOT soy oil had resulted in Benchmark Apr09 to open RM10 lower at 1915.

Trader's Highlight

DJI-NEW YORK, Feb 11 (Reuters) - U.S. stocks rose in a choppy session on Wednesday after lawmakers reached a compromise deal on a $789 billion stimulus package that is seen as crucial to reviving the recession-hit economy.

Stocks had see-sawed during the day, hurt by falling crude oil prices and declines in technology shares before finally holding gains on the stimulus package.

The Dow Jones industrial average <.DJI> gained 50.65 points, or 0.64 percent, to 7,939.53. The Standard & Poor's 500 Index <.SPX> climbed 6.58 points, or 0.80 percent, to 833.74. The Nasdaq Composite Index <.IXIC> added 5.77 points, or 0.38
percent, to 1,530.50. 04:28 12Feb09 RTRS-NYMEX-Crude ends lower on big build, demand view

NYMEX-NEW YORK, Feb 11 (Reuters) - U.S. crude oil futures tumbled more than 4 percent on Wednesday, weighed down by a large increase in domestic crude stocks last week and a gloomy oil demand forecast from the International Energy Agency.

On the New York Mercantile Exchange, March crude settled down $1.61, or 4.29 percent, at $35.94 a barrel, trading from $35.65, a new contract low, to $38.47. The day's low was the lowest since prices hit $32.70 on Jan. 20.

CBOT-SOYBEANS - March down 16 cents to $9.78 a bushel.

Better-than-expected rains in drought-stricken Argentina at mid-week weighed on soybean futures.

Argentine soy production may be higher than expected due to recent rainfall.

CBOT-SOYOIL - March down 0.46 cent at 33.18 cents a pound. Following soy with late drop in crude oil also pressuring.

FCPO-KUALA LUMPUR, Feb 11 (Reuters) - Malaysian crude palm futures fell 2.2 percent on Wednesday, easing off one-month highs, as investors booked profits on the previous day's rally with inventory data meeting trade expectations.

The benchmark April contract settled down 44 ringgit at 1,925 ringgit ($533.8), easing from 1,969 ringgit notched the day before, a level unseen since Jan. 12.

Other traded contracts fell between 6 and 44 ringgit while the Sep 2009 contract was unchanged <0#KPO:>. Overall volume was 17,768 lots of 25 tonnes each compared with the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Feb 11 (Reuters)-Asian stocks were pulled down by financials and energy shares, with scepticism rife about the new plan from Washington. Analysts said regional equities would take their direction from
developments in the Chinese economy and U.S. stock markets.

Elsewhere, the Malaysian index <.KLSE> lost 0.7 percent, with Malayan Banking down 2.2 percent and lender CIMB down 1.8 percent.

DJI Daily: No improvement

Nothing much changes on the immediate technical landscape. We maintain the resistance and support at 8300-8400 and 7449 level respectively.

KLSE Daily: Moving sideways to bias upside potential

Market maintains its sideways to bias little upside potential. We continue to look for upside resistance at 905 followed by 907-910 (gap left over since 15/1/2009). Downside support is at 884-880 (gap left over on 6/2/2009)

FKLI Daily: Firm & Steady

Market remains steady and firm despite a negative close. We continue to looks for the upside at 901 followed by gap left over at 902.5-907. Support is maintain at 880-878 (gap left over on 6/2/2009).

FCPO Daily: Retreated

Market retreated after the recent rally yet 1900 mark was defended. We maintain the upside resistance at 1981-1998 followed by 2058. Downside support is pegged at 1880-1900 followed by 1850-1860.

Trader's Comment: CPO futures ended lower on profit taking.

CPO futures ended lower on profit taking. Benchmark Apr09 opened RM29 lower at 1940 following the overnight losses of CBOT soy oil and NYMEX crude oil. It later climbed to intra day high at 1967 before lunch time but then fell again to the intra day low of 1916 when second session resumed, tracking the sudden fall of Dalian palm as it hit limit down prices. Buy on rumors sell on facts on MPOB Jan09 supply and demand data which released during lunch break also provided some selling pressure. However, bargain hunting and short covering had cushion the slide. Benchmark Apr09 bounced back from the low and continue to trade in that range before it finally settled RM44 lower at 1925. Meanwhile, a Hamburg-based analyst from Oil World had stated that global palm oil prices could improve in the coming weeks as end stock level were showing signs of declining.

Breaking News-RTRS-UPDATE 1-Argentina gets some rain but drought continues

BUENOS AIRES, Feb 10 (Reuters) - Key Argentine soy-growing areas received rain on Tuesday, but the country was still suffering from its worst drought in decades, forecasters said.

Breaking News-RTRS-Palm oil prices may rise on low stocks-Oil World

HAMBURG, Feb 10 (Reuters) - Global palm oil prices may rise in coming weeks because of increasing indications of low stocks in key producer Malaysia, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
Palm oil prices have shown price strength independent of rival soyoil, sunflower oil and rapeseed oil in past weeks, Oil World said.
Support partly stems from talk about a more pronounced than usual slowdown in Malaysian palm oil production partly caused by recent flooding, it said.
"But a bearish factor for palm oil prices is seen in the probable slowdown of import demand from India in the next two weeks, where burdensome stocks were accumulated until end December."

Trader's Highlight

DJI - NEW YORK, Feb 10 - U.S. stocks tumbled more than 4 percent on Tuesday as investors pummeled bank shares on concerns a reworked plan to shore up the financial sector may not be enough to thaw credit markets and alleviate the
deepening recession.

The Dow industrials posted their biggest one-day loss since Dec. 1. Losses accelerated after the Treasury Department rolled out an intensely awaited financial rescue plan, saying it would spend up to $2 trillion to mop up bad bank assets and revive consumer lending.

The Dow Jones industrial average was down 381.99 points, or 4.62 percent, at 7,888.88. The Standard & Poor's 500 Index was down 42.73 points, or 4.91 percent, at 827.16. The Nasdaq Composite Index was down 66.83 points, or 4.20 percent, at 1,524.73.

NYMEX - NEW YORK, Feb 10 - U.S. crude oil futures pared losses in post-settlement trading on Tuesday after the industry group American Petroleum Institute's weekly inventory data showed crude stockpiles fell instead of rose as forecast by
analysts.

Earlier, crude futures ended more than 5 percent lower after the government revised lower its global and U.S. 2009 oil demand estimates and as Wall Street tumbled on doubts about a bank rescue plan's prospects for success.

On the New York Mercantile Exchange, at 5:15 p.m. EST (2205 GMT), March crude was down $1.43, or 3.61 percent, at $38.13 a barrel. It earlier setttled at $37.55, down $2.01, or 5.08 percent, after trading from $37.35, the lowest since prices hit $32.70 on Jan. 20, to $41.80. In floor trading session, a late sell-off breached the contract's lifetime low of $38.

CBOT - SOYBEANS - March down 8 cents to $9.94 a bushel.

Slipped on profit-taking after recent rally on worries about a smaller South American soybean output due to dryness. USDA confirmed those expectations in Tuesday report, cutting its forecast for the Argentine and Brazilian soybean crops.

CBOT - SOYOIL - March down 0.59 cent per lb to 33.64 cents.

Pressed by weakness in soybeans and crude oil. USDA also raised its 2008/09 U.S. soyoil end stocks forecast by 100 million pounds.

FCPO - KUALA LUMPUR, Feb 10 - Malaysian crude palm futures jumped 4.7 percent on Tuesday to hit a one-month high as investors bet on more orders for the vegetable oil because of drought conditions in rival soyoil-producing Argentina.

Cargo surveyor Societe Generale de Surveillance reported slight declines to 372,782 tonnes for Feb. 1-10 palm exports, suggest that Asian buyers may be slowly shifting focus to palm oil rather than soyoil.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled up 89 ringgit to 1,969 ringgit ($549.4), a level not seen since Jan. 12.

REGIONAL EQUITIES - BANGKOK, Feb 10 - Singapore shares climbed more than 1 percent on Tuesday after analysts welcomed news of a rights issue from CapitaLand, while Malaysian shares hit a 4-week high as higher palm oil prices pushed up plantation stocks.

Singapore rose 1.3 percent, recouping part of its 1.9 percent loss on Monday, with developer CapitaLand surging 11.4 percent after analysts said a plan to raise over $1.2 billion in a rights issue gave it flexibility for acquisitions.

In Kuala Lumpur, the main index rose 0.8 percent to its highest since Jan. 15, with planter IOI Corp adding 2.6 percent in line with Malaysian crude palm futures, which climbed to a one-month high.

DJI Daily: looks ugly!

Market looks ugly with a long black candle printed. We maintain the resistance and support at 8300-8400 and 7449 level respectively.

KLSE Daily: 3rd day rallied

Market had its 3rd day rallied to stay above 900 mark. We are now looking for upside resistance at 907-910 (gap left over since 15/1/2009). Downside support is at 884-880 (gap left over on 6/2/2009) followed by 868-860.