Tuesday, August 25, 2009

Breaking News-RTRS-UPDATE 2-China drought serious, but risk manageable-vice min

BEIJING, Aug 24 (Reuters) - A serious drought in China's main soy producing region won't mean crop failure if there is rainfall over the next month and frost is delayed, Vice-Minister for Agriculture Niu Dun said on Monday.
"We've already taken active measures to rectify the situation, including emergency irrigation," he told Reuters on the sidelines of a conference in Beijing.

Breaking News-RTRS-UPDATE 2-Pro Farmer sees big US corn/soy crops, frost eyed

CHICAGO, Aug 21 (Reuters) - Farm newsletter Pro Farmer on Friday projected bumper U.S. 2009 corn and soybean crops, but said both crops were behind in development and will need favorable late-season weather to realize their full potential.
Pro Farmer pegged U.S. corn production at 12.807 billion bushels and soybean production at 3.150 billion bushels. The average corn yield was estimated at 160.1 bushels per acre while the soybean yield was seen at 41.0 bpa.

Trader's Highlight

DJI-NEW YORK, Aug 24 (Reuters) - U.S. stocks ended the day barely changed on Monday as investors took a break from a four-day rally that lifted major indexes to 10-month highs.

Wall Street initially charged higher, but a sharp gain in U.S. Treasury debt prices, which drove benchmark yields lower, triggered a sell-off in stocks.

U.S. Treasury debt prices rose on Monday, with the 30-year bond gaining almost 2 full points, as investors did some bargain hunting after Friday's sharp losses and the Federal Reserve bought government debt.

The Dow Jones industrial average <.DJI> rose 3.32 points, or 0.03 percent, to end at 9,509.28. But the Standard & Poor's 500 Index <.SPX> inched down just 0.56 of a point, or 0.05 percent, to 1,025.57 and the Nasdaq Composite Index <.IXIC> shed 2.92 points, or 0.14 percent, to 2,017.98.

NYMEX-NEW YORK, Aug 24 (Reuters) - U.S. crude oil futures ended higher on Monday on economic recovery hopes, but pared gains near the close as Wall Street trimmed its intraday highs.

On the New York Mercantile Exchange, October crude settled up 48 cents, or 0.65 percent, at $74.37, the highest settlement since Oct. 15, 2008's $74.54. October crude traded from $73.57 to $74.81, the highest front-month intraday price since Oct. 21, 2008's $75.69.

CBOT-SOYBEANS - September up 57 cents at $10.80 a bushel; November up 34-1/2 at $10.07-1/2.

Chinese demand for U.S. soy, a drought in China that was leading to concern about the soy crop there and an immature U.S. soy crop that could be harmed by an early frost combine to lift soybean futures.

Talk of China buying three to four cargoes of U.S. soybeans during the weekend supportive.

CBOT-SOYOIL - September up 0.78 cent at 37.11 cents per lb. Spillover support from strong gains in soy combined with firm crude oil lift soyoil futures.

FCPO-JAKARTA, Aug 24 (Reuters) - Malaysian crude palm oil futures rose 1.3 percent on Monday, but came off a one-week high hit earlier in the day following market talk of a drop in palm oil exports for the August 1-25 period, traders said.

Benchmark November palm oil futures on the Bursa Malaysia Derivatives Exchange settled up 30 ringgit to 2,375 ($677.0) per tonne, after rising as high as 2,402 ringgit, a level not seen since Aug. 14. Overall volume was 17,937 lots of 25 tonnes each.

REGIONAL Equities
-BANGKOK, Aug 24 (Reuters) - Most Southeast Asian stock indexes hovered around a one-week high on Monday, buoyed by optimism about economic recovery, with property and financials such as CapitaLand and DBS leading the way in Singapore.

Singapore's benchmark Straits Times Index <.FTSTI> climbed 2.7 percent to close at its highest since Aug. 14, with CapitaLand , Southeast Asia's largest developer, rising 3 percent and top lender DBS Group adding 2.1 percent.

Malaysia's index <.KLSE> added 0.9 percent to its highest since Aug. 17, Indonesia's index <.JKSE> gained 1.8 percent to its highest since Aug. 18 and Thailand's index <.SETI> added 1.4 percent to its highest since September last year. The Philippine index <.PSI> jumped 5.1 percent and Vietnam's <.VNI> rose for a fourth day, ending 1.7 percent higher.

Trader's Comment: Palm oil futures ended off high on poorer export rumors.

Palm oil futures ended off high on poorer export rumors. Benchmark Nov09 initially surged to intra day high of 2402 in the morning session after opened RM33 higher at 2378 tracking the early rally in NYMEX crude oil & eCBOT soy oil after extending their respective overnight gains. However, palm oil prices encountered some resistance in the second session as the emerged of market talk that Aug1-25 export data which is due to release tomorrow may drop to 980k tonnes (ITS reported last month corresponding period at 1.11 million tonnes), prompted some liquidation activities. Benchmark Nov09 eased off to intra day low of 2364 before it settled RM30 higher at 2375. Daily volume reduced to a total of 17,937 contracts that changed hands.

FCPO Daily : Capped in range trading


Market looks may continue in range trading as gaps every where. To the upside, resistance is looking at 2402-2424( unfilled gap since 17/8/2009). Downside support is at 2364-2346 (gap left over on 24/8/2009).

CBOT Soyoil Daily: building up momentum


Market seem to slowly building up its momentum after found its support base at around 35 levels. Thus, market may in sideways bias to upside potential in near term. To the upside, resistance is at 37.70-38. While, downside support is pegged at 36.25.

NYMEX Crude Daily: holding its upside posture


Market stayed firm with its upside posture after violated the key resistance at 73.38. Thus, we maintain our view to bias upside potential in near term. As for now, we are looking for the immediate resistance at 75.69-76.12. While, downside support is stood at 73.38-72.80.

SSE Daily: May cover upside gap


Market inched up slowly and may try to cover the upside gap left over at 3020-3039. Support is now pegged at 2880-2860.

FKLI Daily: still in correction mode


Market gap up violated the resistance at 1179.5 levels had helped to neutralise the immediate daily technical landscape. However, market remains capped in correction phase with immediate resistance is now looking at 1189.5 (high on 10/8/2009. To the downside, support is pegged at 1169-1163 (gap left over on 24/8/2009).