Breaking News-RTRS-POLL-Asian palm oil prices seen lower in 2009, firming in 2010

KUALA LUMPUR, July 17 (Reuters) - Average palm oil prices
will fall 23 percent this year and only edge higher in 2010 as
better demand prospects give way to concerns over a build-up in
global vegetable oil supply, a Reuters poll showed on Friday.
Malaysian palm oil is forecast to average 2,200 ringgit a
tonne in 2009, 8.9 percent higher than 2,020 ringgit by
Thursday's close, as analysts pointed to an inflow of rival
soyoil from the upcoming U.S. soy harvest and higher palm oil
stocks curbing any gains.
The poll of 17 analysts covering top palm oil producers
Indonesia and Malaysia put 2010 prices at 2,275 ringgit, up 3.4
percent from this year's forecast, based on a more convincing
recovery in the global economy even though a better supply
scenario will dominate.

Trader's Highlight

DJI-NEW YORK, July 17 (Reuters) - U.S. stocks closed out their best week in four months on Friday on a flat note as strong earnings from IBM softened the blow of disappointing results from General Electric Co .

The Dow Jones industrial average <.DJI> gained 32.12 points, or 0.37 percent, to 8,743.94. But the Standard & Poor's 500 Index <.SPX> dipped just 0.36 of a point, or 0.04 percent, to 940.38. And the Nasdaq Composite Index <.IXIC> added 1.58 points, or 0.08 percent, to 1,886.61.

NYMEX-NEW YORK, July 17 (Reuters) - U.S. crude oil futures ended higher on Friday, sparked by better-than-expected housing starts data, with more lift provided by renewed protests in Iran and a tropical wave in the Atlantic.

On the New York Mercantile Exchange, August crude rose $1.54, or 2.48 percent, to settle at $63.56 a barrel, trading from $61.04 to $63.99.

CBOT-SOYBEANS - CBOT August up 33-1/2 cents per bushel at $10.09-1/2.

Fund buying and short-covering following the plunge on Thursday to a 3-1/2-month low
on news China to sell soy from state grain reserves next week. Good U.S. crop weather limiting gains.

Average of analysts' estimates peg end 2009 soy price slightly below current levels.

CBOT-SOYOIL - CBOT August up 1.02 cents per lb at 34.82.

Short-covering bounce after the drop of prices on Thursday with additional support from higher crude oil.

FCPO-JAKARTA, July 17 (Reuters) - Malaysian palm oil futures jumped 5.1 percent on Friday as investors bet on high export figures due out on Monday, with a rise in rival soybean oil price gave a further boost, traders said.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange rose 103 ringgit to finish at the day's high of 2,123 ringgit ($595.85) a tonne, a level not seen since July 6. Overall volume was 15,575 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, July 17 (Reuters) - Most major Southeast Asian stock
markets rose on Friday, with Singapore closing at the day's high as developers extended gains and late buying of banks and property shares boosting Bangkok.

The Indonesian market fell after bombs ripped through two luxury hotels in Jakarta but ended down just 0.6 percent.

Singapore's index <.FTSTI> climbed 1.3 percent to 2,430.96, its highest level of the day, with CapitaLand adding 3 percent and City Developments up 4.5 percent as data showing strong home sales for June bolstered sentiment.

Malaysia <.KLSE> rose for a fourth day, adding 1.1 percent, with Bumiputra Commerce up 2.6 percent and national power company Tenaga Nasional and lender Maybank each up 2.5 percent.

Vietnam <.VNI> dropped 1.1 percent, with Vietnam Dairy down 5 percent and VietinBank falling another 5 percent after its poor debut on Thursday.

The Philippine Stock Exchange suspended its regular half-day trading session due to typhoon Molave, which dumped rain on the capital and the north of the country.

DJI Weekly: Sideways

We are still waiting for a significant breakout either to the upside of 8800-9000 or downside support at 8000 for a more clearer direction in near term.

Trader's Comment: Palm oil futures recouped yesterday’s losses to end sharply higher.

Palm oil futures recouped yesterday’s losses to end sharply higher. Benchmark Oct09 merely hit intra day low of 2028 after opened RM15 higher at 2035 and since then began to surge steadily through out the day until it settled at the intra day high at 2123, up RM 103 with total volume stood at 15,575 contracts changed hands. Buying sentiment was strong as other vege oil markets also gained momentum and continued to be supportive. Both eCBOT soy oil and Dalian palm edged higher during Asian time trading. Pre-weekend short covering activities had also helped to further push up the price in late trading.

KLSE Weekly: Bullish

Market continue to march higher and overall technical landscape remains in bullish view. To the upside, resistance is at 1130-1140 followed by 1160-1165. While, downside support is pegged at 1095-1085 followed by 1065-1060.

FKLI Weekly: Up-trend remains intact

Bull looks enjoying to waltz higher without any sign of tiredness. Thus, we maintain bullish view towards the near term market. To the upside, immediate resistance is at 1140-1150 followed by 1170-1200. While, downside support is pegged at 1090-1080.

FCPO Weekly: Technical correction

Market rebounded and recovered to close at the weekly high had helped to cushion a little from the recent sell down. However, overall technical landscape remains in bearish atmosphere. Thus, market may due for a technical correction in near term. As for now, we are now looking for the immediate downside support at 1964. To the upside, immediate resistance is at 2150-2200 followed by 2295-2300.