Tuesday, July 14, 2009

Breaking News-RTRS-Rains threaten crop in China's top soy area

BEIJING, July 13 (Reuters) - Rains that have continued for more than a month in China's top soybean growing area could reduce output further after earlier drought damage, traders said on Monday.
Some areas in Heilongjiang province, which last year produced 40 percent of the country's 15.5 million tonnes soy output, are flooded, and in combination with the drought could see output down by more than 10 percent.
Any shortfall in domestic production could boost shipments into the world's top soybean importer, although the role of state stockpiling will be a major factor in how much the country buys.

Trader's Highlight

DJI-NEW YORK, July 13 (Reuters) - U.S. stocks rallied more than 2 percent on Monday as bullish comments on financial sector performance from analyst Meredith Whitney lifted hopes that banks' quarterly results may be stronger than expected.

The Dow Jones industrial average <.DJI> rose 185.16 points, or 2.27 percent, to end at 8,331.68. The Standard & Poor's 500 Index <.SPX> was up 21.92 points, or 2.49 percent, at 901.05. The Nasdaq Composite Index <.IXIC> was up 37.18 points, or 2.12 percent, at 1,793.21.

NYMEX-NEW YORK, July 13 (Reuters) - U.S. crude oil futures ended slightly lower on Monday after seesawing as the market sought to consolidate after dropping below $60 last week for the first time since May.

On the New York Mercantile Exchange, August crude fell 20 cents, or 0.33 percent, to settle at $59.69 a barrel, trading as high as $60.67. Monday's intraday low of $58.32 was the lowest since prices fell to $56.12 on May 18.

CBOT-SOYBEANS - July down 36-3/4 cents at $10.91-1/2 per bushel. August down 26-1/4 at $10.18-1/2.

Weighed down by good crop weather in the United States, lower crude oil, fund long-liquidation and unwinding of soy/corn spreads.

CBOT-SOYOIL - July up 0.57 cent at 33.27 cents per lb. Turns firm in rebound from oversold technicals.

FCPO
-JAKARTA, July 13 (Reuters) - Malaysian palm oil futures dropped to their weakest closing in three and a half months on Monday, reversing early gains, as sentiment was dented by falling global stock markets, traders said.

The benchmark September contract on Bursa Malaysia's Derivatives Exchange fell 20 ringgit, or 1.0 percent to 1,990 ringgit ($552.85) per tonne, the weakest level since March 30, after going as high as 2,035 ringgit. Volumes was 14,597 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, July 13 (Reuters) - Southeast Asian stock markets fell on Monday, with Singapore slipping close to a one-week low due to losses in big caps such as CapitaLand and SingTel, while the Thai index hit its lowest in almost seven weeks.

Singapore's benchmark index <.FTSTI> lost 1.8 percent, after falling early in the day by 2.1 percent to its lowest since July 8, with developer CapitaLand down 2.4 percent and Singapore Telecommunications down 1.3 percent.

Elsewhere, Malaysia's index <.KLSE> eased 0.4 percent, weighed down by Berjaya Sports Toto Bhd , which was off 7.6 percent, and Malayan Banking , down 0.9 percent. Jakarta <.JKSE> closed down 2.1 percent, with Bank Rakyat
slipping 4.4 percent and gas distribution firm
Perusahaan Gas Negara 2.9 percent lower.

DJI Daily: 8000 mark defended


Market cushioned as 8000 mark was defended well. Hence, market may move in range trading between 8000 to 8600 level in near term.

KLSE Daily: Sideways


Market is moving in sideways manner searching for direction. Thus, support and resistance is at 1055-1050 and 1072-1083 level respectively.

FKLI Daily: Correction mode likely to extend


Market likely to extend its correction mode in near term. We maintain the immediate support at 1050-1045 followed by 1030. To the upside, resistance is at 1070-1075.

FCPO Daily: Where is the bottom?


Technical outlook dampened further following 2000 mark failed to defend. We stick to bearish view in near term market. currently,we continue to look for the upside resistance at 2050-2060. While, immediate downside support is pegged at 1960-1950 followed by 1900-1880.