Breaking News-RTRS-POLL-Malaysia's August palm oil stocks seen at 6-month peak

RTRS-MALAYSIA'S END-AUG PALM OIL STOCKS SEEN UP 7.3 PCT FROM JULY AT 1.43 MLN TONNES - REUTERS POLL
RTRS-MALAYSIA'S AUG PALM OIL OUTPUT SEEN UP 2.7 PCT FROM JULY - POLL
RTRS-MALAYSIA'S AUG PALM OIL EXPORTS SEEN DOWN 8.0 PCT FROM JULY - POLL

Trader's Comment: Palm oil futures ended sharply lower on its 5th day straight losses on weak sentiment.

Palm oil futures ended sharply lower on its 5th day straight losses on weak sentiment. Benchmark Nov09 immediately gapped down RM29 to open at 2168 following the overnight weak closing in CBOT soy complex. Prices then declined through out most of the sessions until it hit intra day low of 2125 in the second session. It then hovered between 2128-2147 and finally settled RM67 lower at 2130. Market sentiment remained weak as Dalian palm edged lower through out the day and ended with more than 2% loss. There was market talk that production is improving this month especially in the area of east Malaysia. A leading analyst from Oil World Mr Thomas Mielke made a statement today, saying that Malaysian palm oil prices are likely to be supported by lower production resulting from dry weather. However, this did not help much in lifting the market sentiment. Meanwhile, eCBOT were not trading today due to US market holiday.

Trader's Highlight

REGIONAL EQUITIES-BANGKOK, Sept 7 (Reuters) - Major Southeast Asian stock markets gained on Monday as U.S. jobs data fuelled recovery hopes, while optimism about the outlook for casinos and big spenders boosted buying of Asia's top casino operator.

Stronger-than-expected U.S. non-farm payrolls gave an early boost to regional sentiment, while gains in Chinese shares were also supportive, dealers said.

Singapore's Straits Times Index <.FTSTI> rose 0.8 percent to its highest since Aug. 31 while Malaysia's FTSE Bursa Malaysia KLCI <.KLSE> ended up 1 percent at its highest since Aug. 14.

Malaysia-listed Genting , Asia's largest casino operator by market share, climbed 4.8 percent as the stock was seen as a cheaper option for exposure to its Singapore casino business than its unit Genting Singapore . Genting Singapore was up 4.5 percent at S$1.17.

Elsewhere, Indonesia's index <.JKSE> rose 0.8 percent to its highest since Sept. 1 and Thailand's index <.SETI> jumped nearly 2 percent to its highest since Aug. 29, 2008.

FCPO-JAKARTA, Sept 7 (Reuters) - Malaysian crude palm oil futures dropped 3.1 percent to the lowest level in nearly six weeks on Monday, extending a losing streak to five straight sessions amid worries over rising output, traders said.

The benchmark November contract on the Bursa Malaysia Derivative Exchange settled down 67 ringgit at 2,130 ringgit ($606.32) a tonne, a level unseen since July 29. Overall volume was 16,030 lots of 25 tonnes each.

Thomas Mielke, head of German oilseeds research group Oilworld, said Malaysian palm oil futures, which often draw strength from the U.S. soybean market, may be well supported by low stocks of the tropical oil and dry weather hitting yields.

FCPO Daily: Sinking

Market fully covered the downside gap at 2175-2155 and sank further to close off the day low. Currently, we are looking for the downside support at 2100-2050 followed by 2020-2000. To the upside, resistance is stood at 2171-2197 (gap left over on 7/9/2009).

SSE Daily: Building up base

The immediate technical outlook is improving as market continue to build up a support base. Thus, market may move in sideways bias to little upside potential in near term. To the upside, resistance is pegged at 2950-3000 followed by 3020-3039 (gap left over on 17/8/2009). Downside support is stood at 2820-2800 followed by 2760.

FKLI Daily: Resume rallied

Market resumed its uptrend rally after breakout from its previous high at 1189.5 (high since 10/8/2009). Market may target the upside at 1200-1205 followed by 1230-1240. While, downside support is pegged at 1180-1170.