Trader's Comment: Palm oil futures tumbled sharply lower with triple digit losses on weak external market.

Palm oil futures tumbled sharply lower with triple digit losses on weak external market. Benchmark Aug09 initially hit intra day high of 2626 after opened RM7 higher at 2609, following the strong close in overnight NYMEX crude oil. However, lack of follow through buying activities led prices easing off and closed at 2570 before morning break. Spill over from the further weakening of external markets saw Benchmark Aug09 continued to fall for the remaining session. it hit intra day low of 2480 before settled RM103 lower at 2499. eCBOT soy oil drop more than 1% while Dalian palm ended with almost 100 point losses. Asian time NYMEX crude oil also surrendered most of its previous session’s gains at more than 2% lower. Market sentiment had turned weak due to lack of fresh friendly factor. Dorab Mistry’s paper during early of the week was more or less ignored and discounted by players, as players believed that most of his comments had factored in already. Moreover, technically also grossly overbought and needed a good correction.

Breaking News-RTRS-Hungry China keeps US soybean export sales rolling

CHICAGO, May 21 (Reuters) - The surge in U.S. soybean
prices to fresh seven-month highs last week did little to
dampen export demand, with a government report Thursday pegging
sales at a higher-than-expected 1.4 million tonnes.
And despite scattered market talk of a pullback in demand
from China, the world's top importer of soybeans bought about
seven Panamax cargoes of the oilseed last week, including
192,600 tonnes of supplies from last year's harvest.

Breaking News-RTRS-UPDATE 2-Drought-hit Argentine soy crop seen at 32.2 mln T

BUENOS AIRES, May 20 (Reuters) - Argentina's drought-hit soy crop looks set to shrink by 30 percent to 32.2 million tonnes, the smallest in five years, the Buenos Aires Grains Exchange said Wednesday.
The exchange, which has repeatedly cut its forecast for 2008/09 output as the harvest advanced, lowered its previous weekly outlook of 32.8 million tonnes due to poor yields as gathering nears its end.

Trader's Highlight

DJI-NEW YORK, May 21 (Reuters) - U.S. stocks slid in a broad sell-off on Thursday as investors, concerned about the U.S. budget deficit, exited dollar-denominated assets across the board.

Markets came under severe selling pressure as a result of an outlook downgrade for the U.K.'s triple-A credit rating heightened fears that the United States, with its increasing budget deficit and weakened economy, could face a similar fate.

The Dow Jones industrial average <.DJI> dropped 129.91 points, or 1.54 percent, to 8,292.13. The Standard & Poor's 500 Index <.SPX> fell 15.14 points, or 1.68 percent, to 888.33. The Nasdaq Composite Index <.IXIC> lost 32.59 points, or 1.89 percent, to 1,695.25.

NYMEX-NEW YORK, May 21 (Reuters) - U.S. crude oil futures ended with pared losses on Thursday as the dollar shifted lower and as news of a temporary shutdown of the only deepwater oil port in the nation caused some supply jitters.

On the New York Mercantile Exchange, July crude settled down 99 cents, or 1.6 percent, at $61.05 a barrel, trading from $59.92 to $61.87.

CBOT-SOYBEANS - July up 6 cents at $11.75. Support from tight stocks and strong export demand but gains limited by profit-taking, lower stock market and lower crude

CBOT-SOYOIL - July down 0.39 cent at 37.98. Lower crude oil and profit-taking weighing on soyoil futures.

FCPO-KUALA LUMPUR, May 21 (Reuters) - Malaysian palm futures fell 3.96 percent on Thursday after recent strong gains as tight domestic supply fuelled concerns that buyers would eventually switch to rival Indonesia.

The benchmark August contract on Bursa Malaysia's Derivatives Exchange closed 103 ringgit lower at 2,499 Malaysian ringgit ($709.7). Overall volume stood at 22,324 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, May 21 (Reuters) - Southeast Asian stock markets
mostly fell on Thursday, mirroring weakness around Asia after a downbeat forecast for U.S. economic growth, with big caps like DBS Group, Telekom Malaysia and PTT among the losers.

Singapore's Straits Times Index <.FTSTI> dropped 2.6 percent, ending four days of gains, while Thailand <.SETI> dropped 2.3 percent after a four-day rally and Malaysia <.KLSE> snapped a two-day rise to close down 0.7 percent.

Philippine stocks <.PSI> were flat but Vietnam <.VNI> bucked the trend, rising for a fifth day by 0.5 percent. Indonesia <.JKSE> was closed for market holiday.

DJI Daily: Still in range trading

Market remains in rangy mode. Thus, we maintain immediate downside support at 8000. To the upside, resistance is maintain at 8600-8700.

KLSE Daily: Up-trend remains intact

Up-trend remains intact provided 1000 mark continue to support. Thus, we maintain the upside resistance at 1050. To the downside, support is pegged at 1027-1022 followed by 1017-1012 (gap left over on 19/5/2009).

FKLI Daily: Remains positive tone

Profit taking activities were evident after market hit a fresh new high again. However, the overall immediate daily technical outlook remains positive. As for now, we look for the upside resistance at 1045.5-1050. To the downside, support is at 1022 followed by 1013.1006.5 (gap left over on 19/5/2009).

FCPO Daily: Sinking of FCPO

Market sank drastically with triple digit losses following support at 2515-2500 was failed to defend. We are now changing our view towards sideways to lower in near term market. As for now, upside resistance is at 2650-2665. To the downside, support is pegged at 2450-2400.

Trader's Highlight

DJI - NEW YORK, May 20 - U.S. stocks fell on Wednesday, led by financials in a late-stage sell-off, after the Federal Reserve gave a more pessimistic view on the economy, tempering hopes for a quick recovery.

The Fed cut its 2009 forecast for gross domestic product and raised its outlook for unemployment, undercutting recent optimism that the economy might be turning the corner.

The Dow Jones industrial average fell 52.57 points, or 0.62 percent, at 8,422.28. The Standard & Poor's 500 Index lost 4.64 points, or 0.51 percent, at 903.49. The Nasdaq Composite Index was off 6.70 points, or 0.39 percent,
at 1,727.84.

NYMEX - NEW YORK, May 20 - U.S. crude futures surged to a six-month high above $62 a barrel on Wednesday, rallying after government inventory data showed larger-than-forecast drawdowns in crude and gasoline supplies last week.

The data from the Energy Information Administration validated the industry group American Petroleum Institute's report on Tuesday that crude and gasoline supplies fell sharply last week.

On the New York Mercantile Exchange, front-month July crude settled up $1.94, or 3.23 percent, at $62.04 a barrel, the highest settlement since Nov. 11's $62.41. It traded from $59.86 to $62.14, the highest since $62.28 was struck, also on Nov. 11. In post-settlement trading, the day's high rose to $62.26.

CBOT - SOYBEAN - July up 7 cents at $11.69. Shrinking supplies of soybeans, low yields in South America and ongoing buying of soy by China lifting soybean futures to near an eight-month high.


CBOT - SOYOIL - July up 0.20 cent per lb at 38.37. Following soybeans with firm crude oil also supportive.

FCPO - JAKARTA, May 20 - Malaysian palm futures dropped 1.0 percent on Wednesday as investors booked profits, with strong Malaysian palm product export figures meeting expectations, giving no fresh incentives to buy, traders said.

News about Indonesia's plan to impose a 3 percent tax on crude palm oil exports in June, after a seven-month freeze, also failed to support the market, as investors were in profit-taking mood, they said.

The benchmark August contract dropped 28 ringgit to 2,602 ringgit ($736.06) per tonne. Overall volume was more than double the usual at 24,927 lots of 25 tonnes each.

REGIONAL EQUITIES - BANGKOK, May 20 - Southeast Asian stock markets extended recent gains on Wednesday, shrugging off a drop on Wall Street thanks to strong foreign fund flows, while oil above $60 a barrel lifted Thai energy firm PTT and Malaysia's IOI Corp.

Singapore's Straits Times Index rose 0.4 percent, adding to a 3.8 percent gain a day earlier, Kuala Lumpur gained 1.9 percent, and Philippine stocks added 1 percent.
Thailand edged up 0.9 percent and Vietnam added 2.4 percent. Jakarta bucked the trend although it only lost 0.02 percent.

DJI Daily: Struggling

Market was struggling as prices remains in rangy mode. Thus, we maintain immediate downside support at 8000. To the upside, resistance is maintain at 8600-8700.

KLSE Daily: Malaysia Boleh

A double digit gain with a fresh new high for the year proved that 'Malaysia Boleh'. Market looks may continue to rally in near term. Thus, we now looking for the upside resistance at 1050. To the downside, support is pegged at 1017-1012 (gap left over on 19/5/2009).

FKLI Daily: Superb

A convincing breakout to close at fresh year high had helped to maintain the bullish tone. As for now, we look for the upside resistance at 1050. To the downside, we maintain the support at 1013.1006.5 (gap left over on 19/5/2009).

FCPO Daily: Under pressure

Market looks under pressure after prices tested the 2600 mark support in intra-day basis. We currently maintain our sideways view towards the near term market. As for now, we are now looking for the upside resistance at 2655-2665. To the downside, support is pegged at 2515-2500.

Trader's Comment: Palm oil futures ended lower on profit taking.

Palm oil futures ended lower on profit taking. Benchmark Aug09 had been trading within the range of 2656-2607 through out most of the sessions. The bullish results of export figures released by both private cargo surveyors had not led to higher price movement as the news were within market expectation. ITS and SGS reported an increase of 7.9% and 10.7% respectively on the 1-20 May export data. The emerged of late profit taking activities saw Benchmark Aug09 to slid further to intra day low of 2588 before settling RM28 lower at 2602. Generally, market may likely to consolidate in the near future.

Breaking News-RTRS-Informa pegs US soy ending stocks 77 mln bu-trade

CHICAGO, May 19 (Reuters) - Memphis-based analytical firm Informa Economics has pegged 2008/09 U.S. soybean ending stocks at 77 million bushels, below USDA's forecast in May for 130 million, trade sources said.

Trader's Highlight

DJI-NEW YORK, May 19 (Reuters) - The Dow and S&P 500 slipped on Tuesday as financial shares sank and on disappointing housing data, but the Nasdaq rose as investors snapped up technology shares ahead of results from Hewlett Packard .

After a choppy session, financial shares fell as the U.S. Senate passed a bill to curb sudden credit card interest rate increases and hidden fees, a move that analysts said would hurt the profits of major credit card issuers.

The Dow Jones industrial average <.DJI> fell 29.23 points, or 0.34 percent, at 8,474.85. The Standard & Poor's 500 Index <.SPX> lost 1.58 points, or 0.17 percent, at 908.13. The Nasdaq Composite Index <.IXIC> added 2.18 points, or 0.13 percent, at 1,734.54.

NYMEX-NEW YORK, May 19 (Reuters) - U.S. crude oil futures firmed above $60 a barrel in post-settlement trading on Tuesday after the American Petroleum Institute said that domestic crude stocks fell much more than expected last week.

On the New York Mercantile Exchange, at 4:55 p.m. EDT (2055 GMT), the new NYMEX front month crude contract, July , was up 82 cents, or 1.38 percent, at $60.41. It had settled earlier up 51 cents, or 0.86 percent, at $60.10, trading from $58.93 to $60.99.

CBOT-SOYBEANS - July up 15-1/2 cents at $11.62 per bushel.

Rallies to 7-1/2-month high with tight soybean stocks, continued active soy buying by China and fund buying combining to lift soybean futures.

Informa Economics pegs US soy ending stocks for 2008/09 at 77 million bushels, below USDA's outlook for 130 million. - trade sources [ID:nN19412161]

CBOT-SOYOIL - July up 0.01 cent per lb at 38.17 cents. Following soybeans and gains in crude oil.

FCPO-JAKARTA, May 19 (Reuters) - Malaysian palm futures rose 2.3 percent on Tuesday to end a three-day losing streak, pulling back from a two-week low, ahead of export figures expected on Wednesday, traders said.

The benchmark August contract rose 60 ringgit to 2,630 ringgit ($745.46) per tonne, after losing 8.2 percent in previous three days. Overall volume was 17,599 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, May 19 (Reuters) - Southeast Asian stock markets
posted healthy gains on Tuesday, with banks, property and energy shares such as CapitaLand, Maybank and Perusahaan Gas Negara helping push Singapore, Malaysia and Indonesia to one-week highs.

Singapore's main stock index <.FTSTI> climbed 3.8 percent, Malaysia's <.KLSE> 1.1 percent and Indonesia's 4.6 percent. Thai shares <.SETI> hit their highest intraday level in seven months and closed 3 percent higher ahead of a likely Bank of Thailand interest rate cut on Wednesday.

DJI Daily: in Sideways manner

Market retreated after the yesterday rebound. Hence, market likely to continue to move in sideways. Thus, we maintain immediate downside support at 8000. To the upside, resistance is maintain at 8600-8700.

KLSE Daily: Holding well at 1000 mark

Market continue to hold above the 1000 physiological support. Thus, we now looking for the upside resistance at 1037. To the downside, support is pegged at 1017-1012 (gap left over on 19/5/2009).

FKLI Daily: Directionless

Bull looks not to give up to gain back its momentum following resistance at 1020-1025 was violated. Consolidation phase will come to the end if market manage to breakout from its recent high at 1038 level. Otherwise, market may keep holding in sideways manner. To the downside, we are looking for the support at 1013.1006.5 (gap left over on 19/5/2009).

FCPO Daily: Remains sideway

Market covered the upside gap at 2603-2655 to retain its upward posture. However, the rebound was not convincing enough to change its current sideways move. As for now, we are now looking for the upside resistance at 2680-2700. To the downside, support is pegged at 2605-2603 (gap left over on 19/5/2009) followed by 2515-2500.