Breaking News-RTRS-UPDATE 1-India may tax palm oil, ease rice, wheat trade

NEW DELHI, Jan 20 (Reuters) - India may tax crude palm oil imports and relax export rules for wheat and basmati rice, the farm minister said, as tumbling prices and bumper crops allow it to unwind measures imposed last year to smoothen domestic supply.

Breaking News-RTRS-US stimulus not enough, TARP bailout misused-Soros

WASHINGTON, Jan 19 (Reuters) - The stimulus plan the U.S. government is currently considering is necessary to help American citizens, but it will likely not reverse the country's economic decline, hedge fund manager and billionaire philanthropist George Soros said on Monday.
"It is not enough to turn the situation around," Soros told the U.S. Conference of Mayors about the $850 billion proposal to increase spending and cut taxes.
The plan, which was introduced in the U.S. House of Representatives last week and will likely be passed by next month, will help state and local governments balance their budgets and preserve important social services, Soros said.
At the same time, the $700 billion financial bailout known as TARP for Troubled Assets Relief Program had been carried out in a "haphazard and capricious way" and "without proper planning," he said.

Breaking News-RTRS-Malaysia may scrap palm oil windfall tax-report

KUALA LUMPUR, Jan 19 (Reuters) - Malaysia may scrap a windfall tax on palm oil if the price rises further, the country's commodities minister Peter Chin was quoted as saying on Monday by state news agency Bernama.
The Malaysian government in June imposed a windfall tax on crude palm oil sales of above 2,000 ringgit ($559.3) per tonne, following a surge in palm oil prices that in March rose to above 4,000 ringgit ($1,119) a tonne.

Trader's Highlight

FCPO-JAKARTA, Jan 19 (Reuters) - Malaysian crude palm oil futures finished 1.4 percent higher on Monday, underpinned by expectations of supportive data on exports for the first 20 days of January, traders said.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange gained 26 ringgit, or 1.4 percent, to 1,859 ringgit a tonne ($520).

Other traded contracts rose between 16 ringgit and 25 ringgit. Overall volume was at 10,407 lots of 25 tonnes each.

REGIONAL EQUITIES-Singapore's Straits Times Index <.FTSTI> closed up 0.96
percent.

Singapore's government is due to announce the state budget on Jan. 22 and the market expects it to contain incentives to help revive business and the economy, dealers said.

Stocks elsewhere in Asia were mostly lower, although investors were looking for U.S. President-elect Barack Obama to quickly roll out hefty economic stimulus spending and a revived plan to buy bad bank assets.

Thailand's stock index <.SETI> edged up 0.12 percent, Malaysia's <.KLSE> lost 0.69 percent, Jakarta stocks <.JKSE> slid 0.97 percent, the Philippine index <.PSI> fell 1.4 percent to its lowest since Dec. 24 and Vietnam <.VNI> was off 0.37 percent.

KLSE Daily: losing ground

Immediate daily technical outlook weakened further following prices continue to lose ground. Market may maintain sideways to lower move in near term with immediate support at 880. Immediate upside resistance is at 900 followed by 907-910 (gap left over on 15/1/2009).

FKLI Daily: Market momentum turns weak

Market momentum turns weaker following prices failed to sustain at 900 mark after covered some of the upside gap. Thus, we are now looking for the downside support at 885-875. For upside, resistance is at 902.5-907 (remaining gap left over since 15/1/2009).

FCPO Daily: struggle to survive at 18000 mark

Market looks struggle to survive at 1800 mark following prices has been hovering tightly between 1800 to 1870 level after covered the full gap at 1844-1856. Chart wise, market remains in sideways mode. We continue to look for downside support at 1800-1790 followed by 1738-1723. Upside resistance is at 1890-1900 followed by 1913-1935 (gap left over on 13/1/2009).

Trader's Comment: Palm oil futures ended in positive territory after a lackluster trading day.

Palm oil futures ended in positive territory after a lackluster trading day. Benchmark Apr09 opened RM17 higher at 1850 tracking a higher overnight NYMEX crude oil and CBOT soy complex. It fell to 1838, fully covered its yesterday’s left over gap, but immediately bounced back again to hit the intra day high of 1872. It then began to hover between 1861-1843 level through out most of the sessions. Some profit taking activities appeared in late second session sent CPO prices to intra day low of 1833. Nevertheless, it was well supported and Benchmark Apr09 managed to push up into the earlier range before it finally settled RM26 higher at 1859. Trading volume was rather thin due to lack of fresh lead as eCBOT and Asian time crude oil closed. Tonight’s market (CBOT & NYMEX) will be closed for Martin Luther King’s holiday. Traders were also awaiting export data, which is due to be released tomorrow.