Breaking News-BN-MALAYSIA CUTS OVERNIGHT POLICY RATE TO 2.50% FROM 3.25%

Breaking News-RTRS-INDIA FARM MIN SAYS INDIA RULES OUT CRUDE PALM OIL

NEW DELHI, Jan 21 (Reuters) - India has no plans to allow futures trading in rice and wheat, the farm minister, Sharad Pawar, said on Wednesday.
The government would also not levy any import tax on crude palm oil, he told reporters.

Breaking News-RTRS-UPDATE 2-India scraps basmati export tax, cuts floor price

NEW DELHI, Jan 20 (Reuters) - India has scrapped its export tax on basmati rice and cut the floor price for overseas shipments, the trade minister said, as the government cautiously lifts controls imposed last year to ensure domestic supplies.
A panel of ministers decided to cut the export tax to $1,100 per tonne from $1,200 per tonne, but did not impose an expected tax on crude palm oil imports, Kamal Nath told reporters late on Tuesday.

Breaking News-RTRS-China's soybean buying spree may end-Oil World

HAMBURG, Jan 20 (Reuters) - Recent heavy Chinese buying of U.S. soybeans may weaken as China builds up sufficient stocks but low South American sales may continue to boost U.S. soybean exports, Hamburg-based oilseeds analysts Oil World said on Tuesday.

Breaking News-RTRS-UPDATE 2-China soy imports slow on extreme U.S. winter-trade

SINGAPORE, Jan 20 (Reuters) - China's robust soybean imports have slowed as extreme cold weather in the United States has hampered grain transport and movement of ships at leading ports, Asian traders said on Tuesday.

Breaking News-RTRS-S.American soybean crop losses looming-Oil World

HAMBURG, Jan 20 (Reuters) - Continued drought means that major soybean crop losses look probable in key South American producers Argentina and Brazil, Hamburg-based oilseeds analysts Oil World said on Tuesday.

Trader's Highlight

DJI-NEW YORK, Jan 20 (Reuters) - Wall Street ushered in the Barack Obama presidency with a record Inauguration Day drop on Tuesday amid fresh signs the global bank crisis was far from over.

High expectations for details on how the new administration would address the growing banking crisis and faltering economy were dampened after the inauguration speech concluded with little new information to digest.

The Dow Jones industrial average <.DJI> dropped 332.13 points, or 4.01 percent, to 7,949.09. The Standard & Poor's 500 Index <.SPX> slid 44.90 points, or 5.28 percent, to 805.22. The Nasdaq Composite Index <.IXIC> tumbled 88.47 points, or 5.78 percent, to 1,440.86.

NYMEX-NEW YORK, Jan 20 (Reuters) - U.S. crude futures ended higher on Tuesday as traders covered short positions ahead of the February crude contract's expiration, narrowing the spread between the front month and March contracts to just above $2.

On the New York Mercantile Exchange, February crude expired and settled up $2.23, or 6.11 percent, at $38.74 a barrel, trading from $32.70 to $39.55.

The day's bottom was a new contract low for February crude and it marked the lowest front-month price since $32.40 was struck on Dec. 19, 2008.

NYMEX March crude ended down $1.73, or 4.06 percent, at $40.84, trading from $39.11 to $43.79. The March contract low is $38.00. Other nearby months also were lower.

CBOT-SOYBEANS - March down 28 cents at $9.92 a bushel.

Firm dollar and profit-taking weighed on soy futures as did corn/soy spreading and some midday forecasts for improved rainfall in Argentina.

CBOT-SOYOIL - March off 0.78 cent at 33.81 cents a pound. Firm dollar pressures soyoil futures despite rebound in crude oil prices.

FCPO-JAKARTA, Jan 20 (Reuters) - Malaysian crude palm oil futures finished 1.7 percent lower on Tuesday, hit by falling crude oil and soyoil prices, traders said.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange closed down 32 ringgit, or 1.7 percent, to 1,827 ringgit a tonne ($506).

Other traded contracts fell between 14 and 28 ringgit. Overall volume was at 14,133 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Jan 20 (Reuters) - Southeast Asian stocks tracked a
slump in global equities on Tuesday amid growing concern about the world financial sector, with losses in financial shares dragging Singapore and Jakarta to their lowest in over a month.

Singapore led the regional losses, with the benchmark Straits Times Index <.FTSTI> ending down 1.35 percent after falling as much as 3.1 percent in early trade

On Monday Royal Bank of Scotland said it would record the biggest loss in U.K. corporate history, as Britain launched a second bank rescue plan that failed to restore confidence in the wobbly financial sector

Malaysian stocks <.KLSE> shed 1.1 percent to the lowest since Jan. 2, the Thai index <.SETI> slipped 0.6 percent, the Philippine index <.PSI> slid 1.3 percent to its lowest since Dec. 24 and Vietnam <.VNI> lost 0.7 percent to a near one-month low.

Trader's Comment: CPO futures fall on the back of weak market sentiment.

CPO futures fall on the back of weak market sentiment. Weaker NYMEX crude oil coupled with easier E-CBOT soyoil prices traded in Asian time had weighed on local front. First 20 days of January export data released by private cargo surveyors were came within market expectation with both ITS and SGS dropped more than 30 per cent compare to the same period last month. This has resulted benchmark Apr 09 remains under pressure with a tight range after the opening bell at 1818. Bargain hunting activities were saw prices surviving at 1800 mark by midday break. News on India may tax on CPO imports had prompted late selling interest emerged. Apr 09 hit the intra-day low at 1799. Some intra-day short covering helped to cushion the market momentum and sent prices to hit the day high at 1850. However, prices then eased off due to lack of follow through buying support. At the closing bell, Apr 09 settled at 1827, down RM 32 with total daily volume stood at 14,133 contracts changed hands.

FCPO Daily: 1800 mark try hard to defend

Give a big clap to 1800 as it tried hard to defend well. Market tested the 1800 mark intra-day basis but manage to climb back to close above it. Chart wise, market may extend its sideways mode. We continue to look for downside support at 1800-1790 followed by 1738-1723. Upside resistance is at 1860-1870 followed by 1890.

KLSE Daily: in weak tone

Market likely to extend its sideways to lower move in near term as tested the immediate support at 880. Currently, downside support is pegged at 870-860. Upside resistance is at 888-889 (gap left over on 20/1/2009).

DJI Daily: Cautious !! 8000 mark violated

As mentioned earlier, a break below of 8000 mark may indicate more room to downside potential. As for now, we are looking for the recent low at 7882-7449. For upside, resistance is at 8300-8600.

FKLI Daily: More room to downside potential

Market extended its losing streak and violated the support at 885-875 had dampened further the immediate technical landscape. We are now looking for the downside support at 865-860. Upside resistance is at 883.5-887 (gap left over on 20/1/2009).