Trader's Comment: The “Bull” came back again with more strength this time as CPO prices ended with triple digit gains

The “Bull” came back again with more strength this time as CPO prices ended with triple digit gains after breaking above 2200 level. Benchmark Jun09 surged all the way up without looking back through out the day to finally settled RM104 higher at 2269 after it hit intra day high of 2281. Initially, rumors that came out early morning about high CPO production saw Benchmark Jun09 hit intra day low of 2156 after it opened unchanged. However, no follow through selling down were seen, but in fact had attracted more bargain hunters. Buyers became increasingly fierce especially after prices hit above 2200 level. Traders were expecting much more lower stocks level ahead of some crucial data scheduled to release tomorrow. MPOB and private cargo surveyors will released their own supply/demand data and the first 10 days of April export figures respectively. External market also showed strong movements today. eCBOT soy complex extended their previous session’s gain while waiting for tonight’s USDA report. Dalian palm ended almost 2% higher. Meanwhile, Asian time NYMEX crude oil also climbed to above $51. Commercial covering interest were seen at underlying cash market.

Breaking News-RTRS-Oil World sees big fall in Argentina's 2009 soy crop

HAMBURG, April 7 (Reuters) - Argentina's 2009 soybean crop is likely to fall to 40-41 million tonnes from 46.7 million tonnes in 2008, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
In early March Oil World had estimated Argentina's crop this year at 42.5 million tonnes. Soybeans were struggling against a lack of rainfall which had cut yields, it said.

Breaking News-RTRS-China may sell more soy reserves on strong demand

BEIJING, April 8 (Reuters) - A rise in soymeal demand in China has spurred soybean imports by the largest buyer and triggered concerns the government agency may release more reserves into the domestic market, traders said on Wednesday.
Sinograin, which manages the state reserve, has sold about 100,000 tonnes of imported soy reserves in its latest sale last month to crushers, bringing its total sales so far in the year to about 500,000 tonnes, they said.
"It has so far released small amounts because soy prices are still not good enough. If prices continue to rise by another 200 yuan (per tonne), it may release stocks of a large amount," said one trading executive with a major trading house.

Breaking News-RTRS-Lanworth cuts Brazil soy view, raises Argentina

BUENOS AIRES, April 7 (Reuters) - Chicago-based data firm Lanworth trimmed its estimate for Brazil's 2008/09 soy crop to 56.36 million tonnes on Tuesday, but slightly raised its outlook for Argentine output to 43.2 million tonnes.
The Argentine forecast is significantly higher than the latest weekly estimate by the Buenos Aires Grains Exchange, which sees production falling to 39.4 million tonnes due to drought. Last season, Argentina produced 46.2 million tonnes.

DJI Daily: little changed

A mild gain was not enough to change the immediate technical landscape, thus market may continue its consolidate mode in near term. We are looking for the immediate upside resistance at 8000. Downside support remained at 7500-7400

KLSE Daily: Consolidation phase may extend

Consolidation phase may extend in near term following market fully cover the downside gap at 912-910. We continue to look for the immediate upside resistance at 926-930. Meanwhile, downside support is pegged 900 mark.

FKLI Daily: Bull not to give up

Market tested the immediate support at 912.5 in intra-day basis but it manage to defend well ended above 912.5. Bull looks not to give up and may defend and try hard to survive above 900 mark. To the upside, immediate resistance is looking at 928 followed by 942.5.

FCPO Daily: Holding ground

Market was holding well above 2100 mark despite a negative close. The overall technical landscape remains positive. Thus, we maintain our view sideways to higher in near term market. Immediate upside resistance is looking at 2200 followed by 2250-2280 To the downside, support is pegged at 2120-2100 followed by 2070-2050.