Trader's Comment: CPO futures prices ended off the high on pre-weekend short covering.

CPO futures prices ended off the high on pre-weekend short covering. Trading activities were cautious ahead of Jul09 supply and demand data by MPOB and 1-10 days export data by private cargo surveyors scheduled to release on Monday. Weaker regional stock market and lower NYMEX crude oil coupled with negative E-CBOT soyoil prices traded in Asian trading time continue to weigh on the market sentiment. However, talks that export for the 1-10 days around 450,000 tonnes provided some cushion to the downside and saw prices ranging from 2306 to 2329 for most of the trading session. Short covering emerged at late trading session pushed prices to close off the intra-day high at 2341 with total daily volume stood at 11,528 contracts changed hands.

Breaking News-RTRS-POLL-Malaysia's July palm oil stocks seen at 3-month low

17:59 06Aug09 -MALAYSIA'S END-JULY PALM OIL STOCKS SEEN DOWN 3.7 PCT FROM JUNE AT 1.35 MLN TONNES - REUTERS POLL
17:59 06Aug09 -MALAYSIA'S JULY PALM OIL OUTPUT SEEN UP 2.4 PCT FROM JUNE - POLL
17:59 06Aug09 -MALAYSIA'S JULY PALM OIL EXPORTS SEEN UP 10.3 PCT FROM JUNE - POLL

Breaking News-RTRS-UPDATE 2-Brazil's 2009/10 grain crop may grow 9 pct - AgMin

SAO PAULO, Aug 6 (Reuters) - Output from Brazil's 2009/10 grain crop, which will begin planting in September, could grow by 9 percent from this season as weather is expected to improve and planted area expand, Agriculture Minister Reinhold Stephanes said on Thursday.

Breaking News-RTRS-China soybean mkt bullish on high soy prices-survey

BEIJING, Aug 6 (Reuters) - China's soybean market has turned
bullish due to rising prices of imported soybeans, also pushing
up soyoil and soymeal prices, a survey by an official think tank
said on Thursday.
"Soyoil spot prices were lifted by 500 to 600 yuan ($73.21-
$87.85) per tonne in the week," the China National Grain and Oils
Information Centre said (CNGOIC).

Trader's Highlight

DJI-NEW YORK, Aug 6 (Reuters) - Caution crept back into U.S. stock markets on Thursday a day ahead of the July unemployment report and as a cautious outlook from technology bellwether Cisco Systems cast a chill, but European shares rose on soothing earnings results.

A surprise move by the Bank of England to expand its bond buying program by 50 billion pounds, a measure known as quantitative easing, also supported European stocks, driving up financial shares.

The BoE's move, however, along with its decision to hold interest rates at a record low 0.50 percent pushed down sterling against the dollar by more than 1 percent.

The dollar also rose off multi-month lows against the euro after the European Central Bank left its record-low benchmark interest rate unchanged at 1.0 percent. The stronger dollar contributed to losses in U.S. crude oil after it topped $72 a barrel, a one-month high.

The Dow Jones industrial average <.DJI> fell 24.71 points, or 0.27 percent, to 9,256.26. The Standard & Poor's 500 Index <.SPX> lost 5.64 points, 0.56 percent, to 997.08. The Nasdaq Composite Index <.IXIC> dropped 19.89 points, or 1 percent, to 1,973.16.

NYMEX-NEW YORK, Aug 6 (Reuters) - U.S. crude oil futures ended lower in choppy late trading on Thursday, pressured by a
further decline on Wall Street and as the dollar strengthened on risk aversion.

On the New York Mercantile Exchange, September crude settled down 3 cents, or 0.04 percent, at $71.94 a barrel, trading from $71.18 to $72.42.

The June 30 and 2009 peak of $73.38 was the highest front-month price since crude hit $75.69 on Oct. 21.

CBOT-SOYBEANS - August down 4-1/2 cents to $11.70-1/2 a bushel; November down 15 to $10.30.

Firmer dollar spurred profit-taking setback. Outlooks for record large U.S. soy crop and warmer weather this week to boost crop growth also weigh. Strong export demand underpins.

CBOT-SOYOIL - August down 0.69 cent to 36.83 cents per lb. Firm dollar and falling soybeans pressure.

FCPO-KUALA LUMPUR, Aug 6 (Reuters) - Malaysian palm oil futures edged lower on Thursday as weaker crude oil and equity markets stalled a rally driven by supply fears in the Southeast Asian country.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange settled down 10 ringgit to 2,325 ringgit ($666.6).

REGIONAL EQUITIES-BANGKOK, Aug 6 (Reuters) - Stock markets in Indonesia and Thailand rose more than 1 percent on Thursday, pushed up by demand for shares in coal miners, but Singapore inched down in late trade, weighed down by banking shares.

Singapore's index <.FTSTI> ended down 0.2 percent, erasing its early gain of almost 1 percent. Malaysia's index <.KLSE> was up 0.38 percent and Vietnam's <.VNI> edged up 0.03 percent, led by a 5 percent rise in electrical components maker REE .

In Kuala Lumpur, banking shares rose, with Malayan Banking up 1.5 percent and Bumiputra Commerce up 1.3 percent. Fitch Ratings said that, judging by simulated stress tests, Malaysian banks appeared to be sound, despite extremely difficult economic conditions.

FKLI Daily: Remains bullish posture

Bulls are likely to continue its northern journey in near term with upside target remains at 1200 level. While, immediate downside support is maintain at 1170-1165.

Trader's Comment: CPO futures prices recouped some of its early losses to stay firm at 2300 mark.

CPO futures prices recouped some of its early losses to stay firm at 2300 mark. Spilled over bearish sentiment from the weaker regional stock market had dragged the NYMEX crude oil and E-CBOT soyoil prices in Asian Trading time to drop sharply and resulted a panicky selling emerged at local front. Benchmark Oct 09 opened RM 35 lower at 2300 and sank to hit the intra-day low at 2275 before bouncing to close at 2293 at the morning break. Prices were well absorbing in the afternoon session and saw intra-day short covering activities pushed the Oct 09 to the day high at 2345 before settling RM 10 lower at 2325. A choppy trading day ends with 16,049 contracts changed hands.

NYMEX CRUDE Daily: Sideways

Market remains in sideways move. A breakout from the recent high at 73.38 (high on 30/6/2009) may provide more upside room. To the downside, immediate support is pegged at 69.00.

FCPO Daily: 2300 defended

Market defended 2300 mark at close despite tested the immediate support at 2300-2280 in intra-day basis. However, immediate technical outlook remains positive mode thus we maintain our view in sideways to bias upside potential in near term. As for now, immediate resistance is at 2357 followed by 2380-2400. To the downside, immediate support is pegged at 2260-2250 followed by 2220-2200.