Trader's Highlight

Palm oil futures tumbled from yesterday’s 9-month high on weak external factors. Benchmark July09 started to retreat from intra day high of 2759 in the early trading and continue to fall through out the day. It broke below 2700 psychological support level in late trading and finally settled RM105 lower at the intra-day low of 2684. Global vege oil market had showed weakness today along with NYMEX crude oil which traded more then $1 lower at below $57 level during Asian time trading. Dalian palm ended sharply lower while eCBOT soy oil also posted a loss. Spilled over selling interest from regional market also weighed on local CPO market.

Breaking News-RTRS-INTERVIEW-UPDATE 1-Malaysia IOI sees palm yields hurt by weather

KUALA LUMPUR, May 13 (Reuters) - IOI Corp, Malaysia's No 2. planter, said palm oil yields would fall by 5 percent due to a warm spell and that might push prices to 3,000 ringgit in the near term if there was an uptick in overseas demand.
Planters struggled to boost output in Malaysia last month and may continue to do so as oil palms also suffered biological stress after last year's strong harvests and low fertiliser use, IOI Executive Chairman Lee Shin Cheng said.

Breaking News-RTRS-UPDATE 1-Argentine exchange cuts soy outlook to 32.8 mln T

BUENOS AIRES, May 13 (Reuters) - Argentina's 2008/09 soy harvest is seen falling to 32.8 million tonnes, down from a previous estimate of 34 million tonnes because of continuing poor yields, the Buenos Aires Grains Exchange said on Wednesday.

Trader's Highlight

DJI-NEW YORK, May 13 (Reuters) - U.S. stocks tumbled on Wednesday as a gloomy retail sales report revived recent anxiety about the economy's struggle and caused a broad sell-off that accelerated late in the session.

Sales at retailers fell for a second straight month in April, breaking a string of more upbeat reports that had suggested the economic slump was abating and fueling a
two-month rally.

The Dow Jones industrial average <.DJI> fell 184.22 points, or 2.18 percent, to 8,284.89. The Standard & Poor's 500 Index <.SPX> lost 24.43 points, or 2.69 percent, to 883.92. The Nasdaq Composite Index <.IXIC> gave up 51.73 points, or 3.01 percent, to 1,664.19.

NYMEX-NEW YORK, May 13 (Reuters) - U.S. crude futures ended lower on Wednesday as demand worries resurfaced, trumping government inventory data showing a surprise steep drawdown in domestic crude stocks last week.

On the New York Mercantile Exchange, June crude settled down 83 cents, or 1.41 percent, at $58.02 a barrel, trading from $57.41 to $59.90. Tuesday's $60.08 intraday peak was the highest since $62.28 on Nov. 11.

CBOT-SOYBEANS - May up 12-1/2 cents at $11.50 a bushel, July up 10-1/2 cents at $11.28.

Tight stocks of soybeans in the United States spur rally to to seven-month high. Low soy yields in South American harvest, strong Chinese demand for soy and fund buying also supportive.

The National Oilseed Processors Association will issue monthly crush data on Thursday.

CBOT-SOYOIL - May down 0.49 cent at 38.90 cents a lb, July down 0.52 cent at 39.16 cents. Turned lower when crude oil began moving lower.

FCPO-KUALA LUMPUR, May 13 (Reuters) - Malaysian palm futures jumped as much as 2.7 percent to a 9-month high on Wednesday as investors fretted over hot dry weather cutting into output in Malaysia and rival soyoil producing Argentina.

Palm oil prices have rallied nearly 65 percent so far this year on low stocks, healthy demand from top buyers China and India and low soyoil yields in South America.

The benchmark July contract gained as much as 74 ringgit at 2,799 ringgit ($792.2) per tonne before settling at 2,789 ringgit. Overall volume doubled to 20,709 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, May 13 (Reuters) - Singapore's stock market posted a
small gain on Wednesday, with Wilmar International jumping after strong quarterly results, and Thai stocks rose for an eighth session on buying of energy and petrochemical shares.

Singapore's benchmark stock index <.FTSTI> added just 0.3 percent to Tuesday's 0.6 percent rise but is still up 24 percent so far this year. Wilmar , the world's largest listed palm oil firm, rose 5.8 percent.

Malaysia <.KLSE> was flat, with Maybank down 2.8 percent after rising 2.4 percent on Tuesday, while top power producer Tenaga Nasional fell 1.4 percent, extending Tuesday's 1.3 percent loss.

Indonesia <.JKSE> was up 0.5 percent, with banks leading gainers. Bank Rakyat , the third-largest lender, was up 2.6 percent and the biggest lender, Bank Mandiri , was up 1.9 percent.

DJI Daily: Looks tiredness

Market looks tiredness to maintain its current posture. We are now looking for the physiological support at 8000 mark followed by 7700. A break below of 8000 mark may prompt more room to downside potential. To the upside, resistance is maintain at 8600-8700.

KLSE Daily: Holding ground

Market was holding ground and likely to extend its consolidation mode in near term. We now looking for the resistance at 1034-1037. To the downside, support is maintain at 1000.

FKLI Daily: Sideways

Market continue to move in sideways manner and likely to extend further in near term. As for now, we are looking for the upside resistance at 1030-1035. To the downside, support is stood at 1008 followed by at 998-993.5 (gap left over on 4/5/2009).

FCPO Daily: Up-trend remains intact

Up-trend remains intact despite prices touch and go after hit the fresh high for the year at 2799. Market looks may continue to march higher in near term. We are now looking for the immediate upside resistance at 2799 followed by 2850-2860.To the downside, immediate support is pegged at 2738-2736 (gap left over on 13/5/2009) followed by 2680-2650.