Thursday, August 6, 2009

Breaking News-RTRS-UPDATE 2-China's 3rd soybean auction gets poor response

BEIJING, Aug 5 (Reuters) - China sold less than 1 percent of soybean stocks in its third attempt to auction state reserves on Wednesday, much as the market had expected after two earlier rounds failed to attract buyers.
The auction in Inner Mongolia recorded the sale of 4,300 tonnes of the 101,400 tonnes on offer while in Heilongjiang 600 tonnes were sold from about 300,000 tonnes on offer, the National Grain and Oil Trade Centre said.
There were no bids at Jilin province where a total of 100,600 tonnes was on offer.

Breaking News-RTRS-UPDATE 2-Informa raises 2009 U.S. corn crop estimate

CHICAGO, Aug 5 (Reuters) - Analytical firm Informa Economics has raised its estimate for the 2009 U.S. corn harvest, reflecting bigger yields as the crop is experiencing little to no heat stress this summer, trade sources said on Wednesday.
The firm trimmed its soybean output forecast to reflect fewer harvested acres, down about 200,000 acres from the U.S. Department of Agriculture's current forecast of 76.5 million.
Informa kept its August corn and soy forecasts conservative, holding them in line with what it expects USDA to project in its Aug. 12 crop report, traders said.
This will be the first USDA crop forecasts based on actual field surveys.

Trader's Highlight

DJI-NEW YORK, Aug 5 (Reuters) - U.S. stocks slipped on Wednesday after weak data on the services sector and private payrolls cooled recent optimism the recession was retreating, but the market finished off its lows as investors ventured into riskier financial shares.

The Dow Jones industrial average <.DJI> slipped 39.22 points, or 0.42 percent, to 9,280.97. The Standard & Poor's 500 Index <.SPX> shed 2.93 points, or 0.29 percent, to 1,002.72. The Nasdaq Composite Index <.IXIC> lost 18.26 points, or 0.91 percent, to 1,993.05.

A report from ADP showed that private employers cut 371,000 jobs in July, suggesting the labor market remained weak. The U.S. Labor Department's non-farm payrolls report at the end of the week is expected to show 320,000 jobs were lost in July, according to economists polled by Reuters.

NYMEX-NEW YORK, Aug 5 (Reuters) - U.S. crude oil futures rose Wednesday afternoon, lifted by a weakening of the dollar, after
earlier falling on government data that showed crude oil inventories rose much more than expected last week.

On the New York Mercantile Exchange, September crude settled up 55 cents, or 0.77 percent, at $71.97, after trading from $69.71 to $72.10, highest since Monday's intraday high of $72.20. The June 30 peak of $73.38 was the highest intraday front-month crude oil price since crude hit $75.69 on Oct. 21.

CBOT-SOYBEANS - August up 10 cents per bushel at $11.75. New-crop November up 13-1/2 at $10.45. Support from hotter weather in the U.S. crop region that led to concerns about potential harm to the soybean crop.

CBOT-SOYOIL
- August up 0.07 cent per lb at 37.52. Support from gains in soy.

FCPO-KUALA LUMPUR, Aug 5 (Reuters) - Malaysian palm oil futures ended up 1.3 percent on Wednesday, easing off 7-week highs hit earlier as weaker crude oil weighed on production concerns in a top palm oil growing region in the Southeast Asian country.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange hit a session high of 2,357 ringgit ($674), a level unseen since June 18, but settled at 2,333 ringgit.

A Reuters poll on Malaysia's overall palm oil production, stocks and exports in July will be issued on Thursday.

REGIONAL EQUITIES-BANGKOK, Aug 5 (Reuters) - Indonesian shares fell almost 2 percent on Wednesday, snapping a four-day winning streak and leading major Southeast Asian stock markets lower as investors unloaded shares since a rate-cutting cycle now seems over.

Singapore's index <.FTSTI> fell for a second day, sliding 1.6 percent to its lowest since July 30. Malaysia's index <.KLSE> inched down 0.03 percent and Thailand's <.SETI> fell 0.2 percent.

In Kuala Lumpur, the index was weighed down by a 1.3 percent fall in Bumiputra Commerce and a 1.8 percent loss in Petronas , but palm planter IOI Corp rose 3.4 percent as Malaysian palm oil futures hit a seven-week high.

KLSE Daily: Shy away from the fresh high


Upward momentum strengthen further despite bull shy away from the fresh year high. We maintain the resistance and support at 1190-1200 and 1170-1160 level respectively.

FKLI Daily: remains firmly bullish


Market is trading in sideways bias to upside with 1170-1165 provided a good support. Overall technical landscape remains firmly bullish thus we maintain our upside projection at 1200 levels in near term.

FCPO Daily: 2350 violated !!


The overall technical outlook turns brighter following the violation of the tough resistance at 2350. Thus, market may move sideways to bias upside potential in near term. Currently, we are looking for the immediate resistance at 2380-2400 followed by 2420. To the downside, immediate support is pegged at 2300-2280-2220 followed by 2260-2250.