Breaking News: RTRS-POLL-Malaysia's June palm oil inventories seen at 4-mth high

RTRS-MALAYSIA'S END-JUNE PALM OIL STOCKS SEEN UP 4.6 PCT FROM MAY AT 1.43 MLN TONNES-REUTERS POLL
RTRS-MALAYSIA'S JUNE PALM OIL OUTPUT SEEN UP 6.1 PCT FROM MAY-POLL
RTRS-MALAYSIA'S JUNE PALM OIL EXPORTS SEEN UP 0.8 PCT FROM MAY-POLL

Breaking News-RTRS-Big sales cut S. American soybean stocks-Oil World

HAMBURG, July 7 (Reuters) - South American soybean stocks have been cut sharply by heavy recent sales and world supplies could be tight if the U.S. soybean crop is delayed this summer, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
Oil World estimates combined soybean stocks in the four main South American exporters Brazil, Argentina, Uruguay and Paraguay fell to only 53.1 million tonnes on July 1, down 20 million tonnes on July 2008 because of larger than expected exports and crushings.

Breaking News-RTRS-China to cut soybean imports in Aug/Sept-Oil World

HAMBURG, July 7 (Reuters) - China is likely to further cut its purchases of expensive old crop soybeans and instead use up stocks and focus buying on cheaper new crop deliveries in coming weeks, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.

Breaking News-RTRS-UPDATE 1-Brazil 08/09 soy crop seen 57.13 mln T - Gov't

SAO PAULO, July 7 (Reuters) - Brazil's 2008/09 soybean crop was estimated at 57.13 million tonnes, down slightly from the 57.14 million tonnes projected in June, the government's crop supply agency Conab said Tuesday.

Trader's Highlight

DJI-NEW YORK, July 7 (Reuters) - U.S. stocks fell to their lowest level in 10 weeks on Tuesday as talk of a second government stimulus plan heightened fears that the economy is not yet on the path to recovery and that the corporate earnings season starting this week will be weak.

The Dow Jones industrial average <.DJI> dropped 161.27 points, or 1.94 percent, to 8,163.60. The Standard & Poor's 500 Index <.SPX> fell 17.69 points, or 1.97 percent, to 881.03. The Nasdaq Composite Index <.IXIC> lost 41.23 points, or 2.31 percent, to 1,746.17.

NYMEX-NEW YORK, July 7 (Reuters) - U.S. crude oil futures extended losses in post-settlement trading on Tuesday after industry data showed that gasoline and distillate inventories rose more than expected last week.

On the New York Mercantile Exchange, at 5 p.m. EDT (1700 GMT), August crude was down $1.72, or 2.69 percent, at $62.33 a barrel, after dropping as low as $62.24. It earlier settled down $1.12, or 1.75 percent, at $62.93, the lowest
close since May 26's $62.45. It traded earlier from $62.35 to $64.91.

CBOT-SOYBEANS - July down 66-1/2 cents per bushel at $11.33-1/2. November down 68 at $8.95.

Fund long-liquidation with pressure from falling crude oil, good crop weather in the United States, mostly good to excellent ratings for the 2009 U.S. crop, and declining equity markets.

CBOT-SOYOIL - July down 1.39 cents per lb at 32.90. Falling soy and drop in crude oil lending pressure.

FCPO-KUALA LUMPUR, July 7 (Reuters) - Malaysian crude palm oil futures dropped as much as 3.3 percent to touch a new 3-month low on Tuesday as signs that a developing El Nino episode had eased and prospects of higher production.

The benchmark September contract on Bursa Malaysia's Derivatives Exchange fell as much as 70 ringgit to 2,059 Malaysian ringgit ($581.8) per tonne, a level unseen since April 2, before settling at 2,069 ringgit. Volumes doubled to 22,484 lots of 25 tonnes versus the usual 10,000 lots.

REGIONAL EQUITIES-SINGAPORE, July 7 (Reuters) - Indonesian shares rose on
Tuesday as investors braced for President's Susilo Bambang Yudhoyono's re-election this week to spearhead pre-growth policy, while other Southeast Asian stocks moved in tight ranges.

Investor sentiment remained cautious amid lingering doubts about the strength of the global economic recovery and ahead of the corporate earnings reporting season.

Southeast Asia with Philippine's index <.PSI> gaining 0.9 percent and Singapore' stocks <.FTSTI> edging up 0.3 percent, but Vietnam's stocks <.VNI> falling 1.46 percent while Thailand's shares <.SETI> sheding 0.5 percent.

Trader's Comment: Critical support level of 2100 got defeated and saw palm oil futures to crack recent low of 2085.

Critical support level of 2100 got defeated and saw palm oil futures to crack recent low of 2085. Benchmark Sep09 had been struggling to defend the 2100 level through out the morning session as prices kept bouncing back whenever it dropped below it. However, market sentiment became weaker in the afternoon session as more speculative selling and stop loss selling turned more aggressive and continued to depress the price. Benchmark Sep09 hit the new 3-month low at 2059 and settled RM60 lower at 2069. Daily volume almost doubled to 22,484 contracts changed hands. Market sentiment remained bearish due to lack of friendly news.

DJI Daily: Eyeing 8000 mark

Market weaken further following 8200 level tested. Thus, we are now looking the physiological support at 8000 level. Violation of it may provide more room to bias downside potential. To the upside, resistance is at 8400 level.

KLSE Daily: likely to cover full downside gap

Market looks likely to continue to cover the left over gap since 25/6/2009 at 1061-1059. Next support will be looking at 1050. To the upside, resistance is at 1070.

FKLI Daily: Bias downside potential

Market is losing ground further to move bias downside potential. We continue to look for the 1st support at 1055-1050 followed by the next underline support at 1030. To the upside, resistance is at 1070-1075.

FCPO Daily: Sinking

Overall technical landscape dampened further following the violation of recent low at 2085. Thus, market likely to move lower in near term. We are now looking for the downside support at 2050-2000. Immediate upside resistance is at 2145-2150.