Trader's Comment: Palm oil futures partially recovered from its earlier losses on late intra day covering.

Palm oil futures partially recovered from its earlier losses on late intra day covering. Benchmark Aug09 immediately dropped to intra day low of 2513 after opened RM52 lower at 2560, following the sharp fall of overnight NYMEX crude oil and CBOT soy oil. Statement made by top industry analyst Mr Dorab Mistry in the early morning failed to enhanced buying activities but managed to provide some support on the CPO prices from falling further. Prices then hovered between 2560-2520 through out most of the sessions before a wave of intra day short covering activities emerged in late trading and push Benchmark Aug09 to hit intra day high at 2603. At the closing bell, Aug 09 settled RM42 lower at 2570. Dalian palm ended more than 4% lower after trading at limit down prices while eCBOT soy oil managed to claw back its earlier losses to inched higher.

BReaking News-RTRS-Palm prices to surge as Asia chases cargoes -Mistry

KUALA LUMPUR, May 18 (Reuters) - Malaysian palm oil futures could soon surpass a key psychological level of 3,000 ringgit as Asian buyers hunger for more of the vegetable oil at a time of low stocks and weak output, a top industry analyst said on Monday.
China will buy more vegetable oil in the second half than the first as its 4 trillion yuan stimulus package has revived some consumption and current total shipments are 24 percent behind imports of 8.1 million tonnes last year, Mistry said.
But India will now drive palm and soyoil demand rather than China after the government scrapped import taxes for edible oils, starting with palm oil, last year. Mistry said purchases would hit 8.5 million tonnes for the oil year ending Oct. 2009.

Breaking News-RTRS-Russia sets 10 pct import duty on tropical oils

MOSCOW, May 15 (Reuters) - Russia will set a 10 percent tariff on imports of palm and coconut oil for a period of nine months to protect domestic dairy products producers, the government said on Friday on its Web site, www.government.ru.
The new tariff will become effective one month after an order setting is officially published in the government gazette, it said. Normally a publication takes place within days after the Web site announcement.

Breaking News-RTRS-India veg oil importers to fight new tax -report

NEW DELHI, May 15 (Reuters) - Indian vegetable oil importers will challenge a government order asking them to pay an extra 4 percent tax on imports, the Hindu Business Line newspaper reported on Friday.
The tax, called countervailing duty (CVD), is usually levied to protect local producers.
"There is no excise duty on edible oils. Therefore, the claims of CVD are not justified," the paper said quoting trade sources. Excise duty is a tax on domestic producers.
The customs department has asked many importers to pay the tax on vegetable oils brought into the country since Dec. 7, the paper said quoting unamed trade sources.

Breaking News-RTRS-China soy imports slow down amid ample supply-survey

BEIJING, May 15 (Reuters) - China's demand for imported soybeans will likely slow amid ample supplies and heavy imports in coming months, according to a survey by an official think-tank.

Trader's Highlight

DJI-NEW YORK, May 15 (Reuters) - U.S. stocks stumbled on Friday as energy shares dropped along with oil prices on worries about weak demand, overshadowing fresh reassuring economic data.

The Dow Jones industrial average <.DJI> declined 62.68 points, or 0.75 percent, to 8,268.64. The Standard & Poor's 500 Index <.SPX> dropped 10.19 points, or 1.14 percent, to 882.88. The Nasdaq Composite Index <.IXIC> eased 9.07 points, or 0.54 percent, to 1,680.14.

Data showed consumer prices were unchanged last month, while consumer confidence in May pushed to its highest level since Lehman Brothers' collapse last September, which sent shock waves through the financial system.

The reports, along with industrial output that declined at a slower pace, gave more signs that the recession's worst phase may be abating.

However credit card data was not so cheery, showing defaults rose in April to record highs, with Citigroup and Wells Fargo posting double-digit loss rates as the economy shed more jobs.

NYMEX-NEW YORK, May 15 (Reuters) - U.S. crude oil futures ended almost 4 percent lower on Friday amid demand worries following a pullback on Wall Street and as the dollar's safe-haven bets rose on fears that a global economic recovery may be far off.

On the New York Mercantile Exchange, June crude settled down $2.28, or 3.89 percent, at $56.34 a barrel, trading from $56.07 to $58.88. From a week ago, prices are down $2.29, or 3.9 percent. For the year, prices are up $11.74 or 26.3 percent from the Dec. 31 settlement at $44.60.

CBOT-SOYBEANS - July down 17 cents at $11.30-1/2 a bushel.

Profit-taking after hitting 7-1/2 month high this week weighs. Soy supported by tight stocks amid good demand for soy by China and low yields in the South American soy harvest.

CBOT-SOYOIL - July down 0.94 cent at 37.90 cents per lb. Spillover pressure from falling soybeans and lower crude oil.

FCPO-JAKARTA, May 15 (Reuters) - Malaysian palm futures closed lower for a second consecutive day on Friday, wiping out earlier gains of up to 2.6 percent, as volatile soy prices overshadowed the impact of strong exports, traders said.

The benchmark July contract settled down 21 ringgit, or 0.78 percent, at 2,663 ringgit ($750.77) per tonne, after running as high as 2,753 ringgit. Overall volume was 14,855 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, May 15 (Reuters) - Most major Southeast Asian stock
markets rose on Friday, recovering from recent falls as investors bought market heavyweights such as Singapore's CapitaLand, Malaysia's Tenaga Nasional and Thailand's Siam Commercial Bank.

Singapore's index <.FTSTI> gained 0.8 percent, recouping a 2.9 percent fall to a one-week low on Thursday, Malaysia <.KLSE> was up 0.2 percent, ending a four-day fall, and Thailand <.SETI> rose 1.4 percent after a 4.7 percent loss the day before.

DJI Weekly: May enter to a consolidation phase

Upward move looks has been slowing down after facing resistance at 8600 mark. Thus, market may enter into a consolidation phase in near term. Downside support is pegged at 7800-7700.

KLSE Weekly: Holding ground

Uptrend remains intact despite a week closing. As for now, we are looking for the upside resistance at 1037. To the downside, support is stood at 995-990.

FKLI Weekly: May due for consolidation

Prices easing off after failed to break through its recent high at 1038. Bull looks little tiredness and may due for consolidation in near term. To the upside, resistance remains is stood at 1038. Downside support is pegged at 1000 followed by 950.

FCPO Weekly: Facing tough resistance at 2800 mark

Bull seem facing tough resistance at 2800 mark as prices eased off after hitting fresh high at 2799. Nevertheless, up-trend remains holding well. We are now looking for the immediate downside support at 2600 followed by 2400 level.