Wednesday, March 3, 2010

Breaking News-RTRS-Labour woe may hit Malaysia palm output

KUALA LUMPUR, Mar 3 (Reuters) - Malaysia, the world’s No. 2 palm oil producer, will miss its output target of 18.1 million tonnes because of a shortage of foreign labour even as yields recover, a top industry official said today.

Industry regulator Malaysian Palm Oil Board chairman Sabri Ahmad said Indonesian plantation workers make better pay at home as more palm oil estates start up there while employers in Malaysia have trouble hiring because of a stricter work-permit process.

Breaking News-RTRS-ANALYSIS-Fears aside, US dollar best in a bad neighborhood

New York, Mar 2 (Reuters) - In just a few months, the market's perception of the U.S. dollar has turned 180 degrees.
Last year, the world was worried about a dollar crisis as the ballooning U.S. budget deficit sparked fears the greenback may lose its status as the international reserve currency.
In recent weeks, however, the dollar woes have been overshadowed by fiscal instability in Europe and problems elsewhere. Against a basket of currencies <.DXY>, the greenback has gained more than 9 percent since its lows in November.
Many analysts expect the dollar to stay firm against most currencies this year. While the U.S. deficit is still large, prospects for recovery appear better in the United States than in Europe and Japan. That, along with the uncertainty surrounding the euro zone, should boost the attractiveness of the greenback as an investment.

Breaking News-RTRS-Rising exports to cut palm oil stocks - Oil World

HAMBURG, March 2 (Reuters) - A strong increase in global palm oil exports will cut stocks in coming months despite rising production, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
Global palm oil stocks are likely to fall to 6.68 million tonnes in September 2010 from 6.93 million tonnes in September 2009, it said.

Breaking News-RTRS-Oil World ups forecast of Argentine soybean crop

HAMBURG, March 2 (Reuters) - Argentina's 2010 soybean crop is likely to rise to 52 million tonnes from 32 million tonnes in 2009, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
This was up by 1 million tonnes from Oil World's previous estimate in January.
Brazil's 2010 soybean crop is forecast at 65.5 million tonnes from 57.5 million tonnes last year, at the upper end of Oil World's previous forecast of 64 to 65 million tonnes.

Breaking News-RTRS-Senate bill revives US biodiesel credit for 2010

WASHINGTON, March 2 (Reuters) - The $1 a gallon biodiesel tax credit would be revived for 2010 under a jobs and tax-cut bill under consideration in the Senate, Finance Committee leaders said Tuesday.
A vote on the bill, which was unveiled on Monday and would be the second in a series of job creation legislation, is possible later this week.

Trader's Highlight

DJI-NEW YORK, March 2 (Reuters) - U.S. stocks ended slightly higher on Tuesday as mergers and acquisitions supported selected sectors, but investors pulled back from recent gains in some big-cap technology and bank shares.

The S&P 500 has risen for eight of the past 11 trading days, but there were signs of fatigue as investors grew cautious in advance of key employment data at the end of the week.

The Dow Jones industrial average <.DJI> gained 2.19 points, or 0.02 percent, to 10,405.98. The Standard & Poor's 500 Index <.SPX> added 2.60 points, or 0.23 percent, to 1,118.31. The Nasdaq Composite Index <.IXIC> rose 7.22 points, or 0.32
percent, to 2,280.79.

NYMEX-NEW YORK, March 2 (Reuters) - U.S. crude futures were little changed in post-settlement trading on Tuesday, after industry data showed a larger-than-expected build in crude inventories and greater-than-forecast drawdown in distillates.

Heating oil futures rose further on the data and gasoline futures firmed, even though the report showed that gasoline stocks rose higher than expected.

On the New York Mercantile Exchange, April crude last traded at $70.61 a barrel, up 91 cents, after settlement at $79.68, up 98 cents, or 1.25 percent. It traded from $78.26 to $80.95, the highest since Jan. 12's $82.34 intraday high.

CBOT-CHICAGO, March 2 (Reuters) - Chicago Board of Trade grains and soy complex close on Tuesday.

CBOT-SOYBEANS- CBOT March soybeans last up 1-3/4 cents at $9.54-1/4 a bushel, May soybeans up 1 cent at $9.63-1/2. Firm cash market and higher crude oil lifting soy futures but choppy consolidation trade with early harvest of likely record large South American soybean crop limiting gains.

CBOT-SOYOIL - CBOT March soyoil up 0.31 cent at 39.81 cents per lb., May soyoil up 0.30 cent at 40.20 cents. Firm crude oil lending support along with support from unwinding of meal/oil spreads.

FCPO-KUALA LUMPUR, March 2 (Reuters) - Malaysia's crude palm oil futures slipped from a one-week high on Tuesday as traders took profits on weaker external markets and crude oil prices.

Expectations of lower production have offset cargo surveyor reports of a near one-fifth decline in Malaysian palm oil export shipments in February and limited losses for the trading session.

Benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange settled down 0.7 percent, or 18 ringgit to 2,612 ringgit ($772.1). On Monday, the market hit one-week highs at 2,638 ringgit.

REGIONAL EQUITIES-BANGKOK, March 2 (Reuters) - Thai stocks hit a six-week high
on Tuesday in their first reaction to a long-awaited court ruling on the assets of former premier Thaksin Shinawatra after a long holiday weekend, but the region in general was mixed.

Markets got an early boost from strong manufacturing data in Europe and news American International Group was selling its Asian insurance business to Britain's Prudential , which drove both European markets and Wall Street up on Monday.

However, Singapore's index <.FTSTI> closed down 0.07 percent, after climbing to its highest since Feb. 18, weighed down by a 4.4 percent drop in gaming group Genting Singapore and a 0.98 percent loss in United Overseas Bank .

Malaysia's index <.KLSE> was up 0.36 percent after an early gain to a five-week high as better-than-expected fourth-quarter GDP data announced last week and higher projections for 2010 and 2011 earnings buoyed the market, dealers said.

FCPO Daily: Looks tiredness


Market looks little tiredness to maintain its upward posture following prices retreated and tested 2600 levels in intra-day basis. Thus, market may continue to move in range trading between 2660 to 2580 levels. A significant breakout either to the upside of 2660 or to the downside at 2580 levels may provide a more clearer direction to the market.

FKLI Daily: Market may challange 1300 levels


Market violated the recent high at 1288 levels to close firm. Market looks likely to continue its upward posture in near term. As for now, resistance is looking at 1295.5 to 1300.0 levels. To the downside, immediate support is pegged at 1270.0 followed by 1260.0 levels.