Breaking News-RTRS-Argentine farmers to decide on strike extension

By Nicolas Misculin
BUENOS AIRES, Sept 2 (Reuters) - Argentine farm leaders will decide on Wednesday whether to extend an eight-day strike that has paralyzed local grains markets and revived a bitter conflict that gripped the country last year.

Breaking News-RTRS-China soy importers quiet after large Aug purchases

BEIJING, Sept 2 (Reuters) - China's soy importers are expected to stay on the sidelines this week after buying large chunks of the new U.S. soy crop late last month in response to wide price spreads <0#DSM:><0#DBY:> between the United States and the Dalian Commodity Exchange, traders said on Wednesday.
In the last two weeks of August, Chinese importers bought more than 25 cargoes of the new U.S. soybean crop, each holding 55,000-60,000 tonnes, which pushed up U.S. soy premiums and narrowed the spread, they said.

Trader's Highlight

DJI-NEW YORK, Sept 2 (Reuters) - Global stocks slipped and the yen rose to a seven-week high against the dollar on Wednesday as investors grew apprehensive about the strength of economic recovery, raising the appeal of gold and other safe-havens.

Minutes from the U.S. Federal Reserve's recent policy meeting, released Wednesday, showed officials thought risks to the U.S. economy had eased but low interest rates would be needed for some time to bolster what would be at best a modest recovery.

The Dow Jones industrial average <.DJI> closed down 29.93 points, or 0.32 percent, at 9,280.67. The Standard & Poor's 500 Index <.SPX> fell 3.29 points, or 0.33 percent, at 994.75. The Nasdaq Composite Index <.IXIC> slipped 1.82 points, or 0.09 percent, at 1,967.07.

NYMEX-NEW YORK, Sept 2 (Reuters) - U.S. crude oil futures settled unchanged on Wednesday after a choppy session during which prices were mostly lower as government data showed a small drawdown in crude oil inventories last week.

On the New York Mercantile Exchange, October crude settled unchanged at $68.05, trading from $67.05 to $68.80.

CBOT-SOYBEANS - September down 4-3/4 cents at $10.09-1/4 a bushel. Weighed down by lack of Chinese buying of soy this week, good U.S. crop weather and a forecast by trade house FC Stone for a record U.S. soy crop.

CBOT-SOYOIL - September down 0.41 cent at 34.12 cents per lb. Pressured by deliveries on nearby contract and weakness in soy market.

FCPO-KUALA LUMPUR, Sept 2 (Reuters) - Malaysian crude palm oil futures tumbled as much as 3.6 percent to hit a five-week low on Wednesday on prospects of higher soyoil supplies following good U.S. crop weather.

The benchmark November contract on the Bursa Malaysia Derivatives Exchange dropped 83 ringgit to a low of 2,220 ringgit ($627.1) per tonne, a level unseen since July. 31, before settling at 2,245 ringgit.

REGIONAL EQUITIES-BANGKOK, Sept 2 (Reuters) - Singapore shares fell 1 percent
on Wednesday while most other Southeast Asian stock markets slid to their lowest in almost two weeks after energy and resource shares came under selling pressure as oil continued to fall.

Singapore's index <.FTSTI> earlier fell 1.4 percent to its lowest since Aug. 21. Olam International dropped 7.3 percent after a convertible bond planned by the commodities firm triggered concern about share dilution.

Thailand <.SETI> ended flat, recouping an early 1 percent loss to the lowest since Aug. 21, and Malaysia's index <.KLSE> edged 0.3 percent lower. In Kuala Lumpur, Genting fell 2.9 percent and Sime Darby was down 0.7 percent.

FCPO Daily: Likely to extend losses

Market violated the underlined support at 2234-2225 had weaken further the overall technical landscape. Thus, there are still more room to bias downside potential. Currently, we are looking for the downside support at 2175-2155 (gap left over on 31/7/2009). To the upside, resistance is adjusted to 2280-2299(gap left over on 2/9/2009).

CBOT Soyoil Daily: Weakening

Market is weakening and looks may extend its losing streak in near term. As for now, we are looking for the immediate support at 33.50 followed by 33.23. To the upside, resistance is pegged at 35.50-35.60.

NYMEX Crude Daily: Remains sideways to lower

Market pulled back a little after the recent sharp fall. However, bear may attack anytime after fully re-charge from the short break. Hence, we maintain our view sideways to bias downside potential in near term. We are looking for the immediate downside support at USD 66.11 followed by 65.23. To the upside, immediate resistance is adjusted to 69.71-69.83 followed by 71.25-71.37.

SSE Daily: Maintain in bearish outlook

A mild gain for consecutive two trading days was not enough to change the immediate bearish technical landscape. Thus, market may continue to move lower in near term with immediate downside support is pegged at 2639-2635 (unfilled gap left over since 1/6/2009) followed by 2538 levels. While, upside resistance is stood at 2817-2843 (gap left over on 31/8/2009).

FKLI Daily: Bulls defended

Bulls done a great job defended its territory to close at day high and inline with FTSECI index level. Thus, uptrend remains intact provided 1149 levels has not been taken out. To the upside, resistance maintain at 1171.5-1173.5 (gap left over on 1/9/2009).

Trader's Comment: Palm oil futures edged lower on weaker external market.

Palm oil futures edged lower on weaker external market. Benchmark Nov09 started with RM24 gap lower at 2279 following the overnight sharp fall of NYMEX crude oil and CBOT soy oil. It then continued to slide lower through out most of the sessions and hit intra-day low at 2220 in the second session, tracking the further declined in Dalian commodities prices. Nevertheless, intra-day short covering activities began to emerge in late trading as prices then started to recover slowly until it finally ended off low to settle RM58 lower at 2245. Daily volume remained good with a total volume of 16,213 contracts changed hands.