FCPO Daily: looks tiredness

Immediate technical outlook looks tiredness and weakened further despite closing at 2400 mark. We are now looking for the immediate support at 2350, violation of it may provide more downside room. Next support will be looking at 2320-2300. To the upside, immediate resistance is at 2450 followed by 2500.

Trader's Highlight

DJI - NEW YORK, June 12 - The Dow moved into positive territory for the year for the first time since early January on Friday, lifted by defensive sectors like pharmaceuticals while a disappointing outlook from National Semiconductor weighed on technology stocks.

The healthcare sector rose as investors rotated money into defensive plays, which pushed the S&P 500 to a seven-month high. The AMEX Pharmaceutical index gained 1.2
percent.

Defensive plays are stocks of companies that tend to weather a recession better than others because their products -- such as food or toothpaste or drugs -- are things that people buy, even if they cut spending, in leaner times.

The Dow Jones industrial average gained 28.34 points, or 0.32 percent, to 8,799.26. The Standard & Poor's 500 Index gained 1.32 points, or 0.14 percent, to
946.21. The Nasdaq Composite Index dropped 3.57 points, or 0.19 percent, to 1,858.80.

NYMEX - NEW YORK, June 12 - U.S. crude oil futures ended lower on Friday as the dollar's rebound directed investment flow away from commodities, at least for the moment, and as traders took pre-weekend profits, snapping a three-day rally.

On the New York Mercantile Exchange, July crude settled down 64 cents, or 0.88 percent, at $72.04 a barrel, trading from $70.80 to $72.63. It settled on Thursday at $72.68, the highest close since Oct. 20's $74.25, after hitting an intraday high of $73.23, highest since Oct. 21's $75.69.

CBOT - SOYBEANS - July down 21-1/2 cents per bushel at $12.45-1/2. Profit-taking ahead of the weekend weighing on soybean futures in addition to pressure from firm dollar and lower crude oil. Forecasts for better crop planting and growing weather next week in the United States also weigh.

CBOT - SOYOIL - July down 1.04 cents per lb at 37.16. Lower crude oil and profit-taking combine to weigh on soyoil.

FCPO - JAKARTA, June 12 - Malaysian palm oil futures closed lower for a second straight day on Friday as worries over weak exports and a retreat in rival soybean and crude oil prices prompted long liquidation, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange settled down 20 ringgit, or 0.8 percent, to 2,465 ringgit ($712.04) per tonne. Overall volume was 16,137 lots of 25 tonnes each.

REGIONAL EQUITIES - BANGKOK, June 12 - Southeast Asian stock markets ended mixed on Friday, with lender DBS Group and developer Keppel Land pushing Singapore down for a second day, while bourses in Malaysia, Indonesia and Thailand inched higher.

Rising oil prices triggered concerns that inflation could
derail an economic recovery, analysts said.

Singapore inched down 0.2 percent, after a 0.4 percent loss on Thursday, while Vietnam fell 0.3 percent, reversing a 2.8 percent rise the day before.

Vietnam fared best for the week, rising 6.4 percent since Monday, followed by a four percent gain in Thailand.

Malaysia inched up 0.1 percent on Friday, adding to a 1.6 percent gain over the past two days. Indonesia edged up 0.06 percent, after a 0.9 percent fall on Thursday.

Trader's Comment: Palm oil futures ended lower on weak external markets.

Palm oil futures ended lower on weak external markets. Benchmark Aug09 immediately slid to morning low of 2477 after opened at intra day high at 2501. It was well supported initially as it hovers between 2484-2499 level through out the morning session. However, second session resumed with easier tone tracking external market, it was under selling pressure through out the second session. It then slid to intra day low of 2445 in late trading before it finally settled RM20 lower at 2465. The weakness in external markets had provided some selling pressure to the local CPO market today. Asian time NYMEX crude oil traded more than $1 lower at below $72 level while eCBOT soy oil and Dalian palm also edged lower.

Breaking News-RTRS-UPDATE 1-China May soy imports slip to 3.52 mln tonnes

BEIJING, June 11 (Reuters) - China's soybean imports slipped to 3.52 million tonnes in May, from 3.71 million tonnes in April, down 5.1 percent on the month but still 1.2 percent ahead of May 2008, official Customs figures showed on Thursday.
China's soy imports in the first five months of the year rose 27 percent from a year earlier to 17.38 million tonnes, according to the General Administration of Customs.

Breaking News-RTRS-ANALYSIS-US soy markets poised for volatile summer

CHICAGO, June 10 (Reuters) - U.S. soy markets are poised for another season of volatility, with shrinking supplies and the record new crop possibly leading to price swings as extreme as they were last summer.
The U.S. Department of Agriculture on Wednesday confirmed private forecasts for domestic soybean stocks to shrink by August to their lowest level in 32 years.
But the agency also forecast a record large 2009 U.S. soy crop -- setting the stage for some wild price swings given the sharp contrast between the two.

Trader's Highlight

DJI-NEW YORK, June 11 (Reuters) - U.S. stocks racked up gains across a wide array of sectors on Thursday, aided by rising commodity prices and improving labor market conditions, along with a sharp drop in interest rates.

But stocks faded late in the session as analysts said the recent pattern of light volume has made it difficult for the S&P 500 to close above the psychologically important 950 level.

The Dow Jones industrial average <.DJI> gained 31.90 points, or 0.37 percent, to 8,770.92. The Standard & Poor's 500 Index <.SPX> rose 5.74 points, or 0.61 percent, to 944.89. The Nasdaq Composite Index <.IXIC> added 9.29 points, or 0.50 percent, to 1,862.37.

NYMEX-NEW YORK, June 11 (Reuters) - U.S. crude oil futures rallied for a third straight day and ended above $72 a barrel on Thursday, as the dollar dropped and economic recovery hopes rose on reassuring jobless benefit claims and retail sales
data.

Crude futures were in rally mode from the early going, after the Paris-based IEA earlier said 2009 oil demand will contract less than previously expected, easing worries about low consumption.

On the New York Mercantile Exchange, July crude settled up $1.35, or 1.89 percent, at $72.68 a barrel, the highest close since Oct. 20's $74.25. It traded from $71.32 to $73.23, the highest intraday since Oct. 21's $75.69.

CBOT-SOYBEANS - July up 21 cents at $12.67 a bushel; November up 10-1/2 at $10.89-3/4.

Rallies to nine-month high on tight soy stocks, weak dollar and higher crude oil. Old-crop July/new-crop November spread stays volatile, with July nearing $2 premium.

CBOT-SOYOIL - July down 0.41 cent at 38.20 cents a pound.

Weakest leg of complex amid large U.S. soyoil stocks, with strong soymeal demand fueling meal/oil spreading.

FCPO-JAKARTA, June 11 (Reuters) - Malaysian palm oil futures closed lower on Thursday after crude oil, which sparked a midday rebound, retreated from its high in Asian hours, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange fell 16 ringgit, or 0.6 percent, to 2,485 ringgit ($708.99) per tonne, after going as high as 2,519 ringgit. Overall volume was 16,718 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 11 (Reuters) - Major Southeast Asian stock markets came off their early highs on Thursday, with losses in Raffles Education and DBS Group ending a 2-day rise in Singapore while Telkom and Astra International fell in Indonesia.

Singapore's index <.FTSTI> fell 0.4 percent after a 2.5 percent gain over the past two days.Thai stocks <.JKSE> gained 0.4 percent, adding to a 4.1
percent rise over the past two days. Malaysia <.KLSE> added 0.6
percent, after a 1.04 percent rise on Wednesday.

DJI Daily: Slowly inching up

Market is inching up in a very slow manner. Thus, we maintain our upside resistance at 9000-9200. Downside support adjusted to 8600 followed by 8200.

KLSE Daily: Likely to challenge 1090-1100

Market marked another new high and looks likely to challenge 1090-1100 level in near term. While, downside support is at 1075-1070.

FKLI Daily: Believe or not

No matter you believe or not, market looks likely to continue its northern journey with upside target at 1091.5-1120. To the downside, support is pegged at 1075-1070.

FCPO Daily: Uncertain

Market direction remains uncertain as prices stuck in rangy mode. Currently, we maintain the immediate upside resistance at 2520-2525 followed by 2565-2585. To the downside, immediate support is pegged at 2441 followed by 2420-2400.

Trader's Comment: Palm oil futures ended mix to easier after trapped in narrow range trading

Palm oil futures ended mix to easier after trapped in narrow range trading through out most of the afternoon session. Benchmark Aug09 initially opened RM30 lower at 2471 following the losses in overnight CBOT soy oil, but immediately bounced back again and hit intra day high at 2519 in the morning session. Some profit taking activities emerged in the early second session saw prices eased off slightly to 2484 and then began to hover between 2516-2484 level until it finally settled RM16 lower at 2485. The losses in Dalian palm had given some minor impact today as Asian time NYMEX crude oil continued to rally strongly after its overnight strong gains, while eCBOT soy oil also rebounded slightly. Meanwhile, potential buying interest for the upcoming Ramadhan festive season which fall in the 3rd week of Aug may have also lend some support to the local CPO market.

Breaking News-RTRS-Rains ease drought in China's largest soy area

BEIJING, June 10 (Reuters) - Rains this week have eased a drought in China's largest soy growing area of Heilongjiang province, agricultural officials said on Wednesday.
As farmers began replanting corn, soy seedlings were emerging and were largely unaffected by the drought, they said.

Trader's Highlight

DJI-NEW YORK, June 10 (Reuters) - U.S. stocks fell on Wednesday on worries that rising interest rates could put a damper on consumer and business spending, but stocks pared losses late in the session to finish off the day's lows.

The Dow Jones industrial average <.DJI> fell 24.04 points, or 0.27 percent, to 8,739.02. The Standard & Poor's 500 Index <.SPX> slid 3.28 points, or 0.35 percent, to 939.15. The Nasdaq Composite Index <.IXIC> dropped 7.05 points, or 0.38 percent,
to 1,853.08.

In its latest Beige Book survey of the economy, the Federal Reserve said U.S. economic conditions were weak or worsened through May, but some areas of the country saw signs the contraction was moderating.

NYMEX-NEW YORK, June 10 (Reuters) - U.S. crude oil futures settled at the highest level in seven months on Wednesday, gaining sharply on government data showing a
larger-than-expected drawdown in crude oil inventories last week.

Prices rose for a second day in a row, but pared gains after surging to the intraday high of $71.79 as the dollar rebounded against the euro and Wall Street dipped on worries surging oil prices could weaken the economic recovery.

On the New York Mercantile Exchange, July crude settled up $1.32, or 1.89 percent, at $71.33 a barrel, the highest close since Oct. 20's $74.25. It traded from $70.43 to $71.79, the highest intraday price for a front-month contract since Oct. 22's $71.80.

CBOT-SOYBEANS - July up 2-1/2 cents at $12.46 a bushel.

Bullish U.S. soy stocks data in USDA's June supply/demand report supports market but gains slowed by downturn in stock market and firming dollar.

USDA forecast U.S. old-crop soy ending stocks at 110 million bushels, below average estimate for 114 million, and new-crop soy ending stocks 210 million, slightly below estimates for 211 million.

CBOT-SOYOIL - July down 0.84 cent at 38.61 cents a lb. USDA raised 2009/10 soyoil end stocks estimate by 265 million lbs.

FCPO-JAKARTA, June 10 (Reuters) - Malaysian palm oil futures rose 1.5 percent on Wednesday, as a rally on crude oil, soybean and equity markets outweighed bearish data on palm oil exports and stocks, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange rose 36 ringgit to 2,501 ringgit ($716.0) per tonne, after going as low as 2,451. Overall volume was 18,440 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 10 (Reuters) - Singapore led other Southeast
Asian stock markets higher on Wednesday, with Singapore's CapitaLand, Malaysia's Malayan Banking, Indonesia's Indocement and Thailand's PTT among the region's outperformers.

An auction of 10-year U.S. Treasury notes and the latest data from the U.S. Federal Reserve would set the direction for U.S. and global equities, Warut Siwasariyanon, head of research at Finansa Securities said.

Singapore's index <.FTSTI> rose 1.8 percent, with CapitaLand , Southeast Asia's biggest developer, surging 6 percent and palm oil planter Wilmar International adding 3.1 percent.

Malaysia's index <.KLSE> rose 1.04 percent o its highest level since September 4, with Malayan Banking Bhd , the country's biggest lender, adding 3.7 percent.

KLSE Daily: Cheers

Market continue to draw a bullish picture after violated the recent high. Thus, we are now looking for the upside resistance at 1082-1090. While, downside support is at 1070 followed by 1066-1063 (gap left over on 5/6/2009).

FKLI Daily: Another day of bull rallied

Another day of bull rallied. A long white candle printed is proved to us that bulls remains strong and steady. As mention earlier, a breakout from the recent high at 1082 is likely to extend its upward move in near term. As for now, we adjusted our upside resistance at 1090-1100. To the downside, support is pegged at 1075-1070 followed by 1060.

FCPO Daily: Directionless

2400 mark is still cushioning well following prices reversed from its losing streak to end at day high. However, this was not enough to change the immediate negative technical landscape. Thus, we maintain our view sideways to lower in near term. Currently, we maintain the immediate upside resistance at 2501-2525. To the downside, immediate support is pegged at 2420-2400 followed by 2350.

Trader's Highlight: Palm oil futures edged higher as unexpected bearish stock data offset by strong external markets.

Palm oil futures edged higher as unexpected bearish stock data offset by strong external markets. Benchmark Aug09 initially opened RM20 higher at 2480, following the firm closed in overnight NYMEX crude oil. However, the released of weak 1-10 June export data by both private cargo surveyors had caped the further gains in FCPO. ITS & SGS reported a sharp fell of 28.3% and 35% respectively. Meanwhile, the released of MPOB supply & demand data which saw an unexpectedly rose of 5.72% in end May stock level, led prices to fall further until it hit intra day low of 2451 in the afternoon session. Nevertheless, the strong external market had provided some cushion of support to the local CPO market. The continuous rally of Asian time NYMEX crude oil and eCBOT soy oil, coupled with spill over from bullish regional market led Benchmark Aug09 to bounced back again and ended at the intra-day high of 2501 with total daily volume increase to 18,443 contracts changed hands.

Breaking News-RTRS-Oil World expects tight Brazilian soybean supply

HAMBURG, June 9 (Reuters) - A poor soybean crop this year coupled with high exports and domestic consumption are likely to make Brazilian soybean supplies tight on international markets in coming months, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
It forecast Brazil's harvest will fall to 57.4 million tonnes of soybeans in early 2009, down from 60.0 million tonnes in early 2008.
Despite expectations of a lower crop, Brazil's February/May 2009 soybean exports shot up to 12.5 million tonnes from 9.6 million tonnes in February/May 2008, it said.

Breaking News-RTRS-Dalian soy falls on China state reserve talk, rains

BEIJING/SINGAPORE, June 9 (Reuters) - Speculation that China may release soybeans from its state reserves is putting pressure on Dalian soybean futures <0#DSA:>, which fell about 2 percent on Monday and a further 1.5 percent on Tuesday, traders said.
The government has asked Sinograin, its buying agency, to keep buying soy until the end of June, when it will complete a stockpiling campaign aimed at supporting farm incomes and building up a state reserve that can be called on later in case of sharp price rises.
Traders said the speculation about soybeans was sparked by a read-across from the corn market, which has fallen due to talk of Sinograin releasing some corn stocks later this month.

Trader's Highlight

DJI-NEW YORK, June 9 (Reuters) - The Nasdaq rose on Tuesday after an improved outlook from Texas Instruments lifted technology stocks, but news that 10 big banks will repay TARP funds failed to stir investor enthusiasm.

Department said 10 big banks will pay back $68 billion received under the Troubled Asset Relief Program, or TARP, to the government. But the market quickly fell back on concerns that the money could be put to better use by making loans to businesses and consumers, which would boost the economy.

The Dow Jones industrial average <.DJI> dropped 1.43 points, or 0.02 percent, to 8,763.06. The Standard & Poor's 500 Index <.SPX> gained 3.29 points, or 0.35 percent, to 942.43. The Nasdaq Composite Index <.IXIC> climbed 17.73 points, or 0.96 percent, to 1,860.13.

NYMEX-NEW YORK, June 9 (Reuters) - U.S. crude oil futures struck a new seven-month intraday high in post-settlement trading on Tuesday after the American Petroleum Institute's weekly inventory data showed a much larger-than-expected crude stock
drawdown last week.

The API said domestic crude stocks fell 6.0 million barrels to 357.9 million barrels last week, citing a big drop in imports.

On the New York Mercantile Exchange at the 5:15 p.m. EDT (2115 GMT), July crude was up $2.52, or 3.7 percent, at $70.61 a barrel, after hitting an intraday high of $70.69, the highest since prices hit $71.77 on Nov. 4. The day's low was
$68.43.

CBOT-SOYBEANS - July up 11 cents per bushel at $12.43-1/2.

Climbs to nine-month high with support from lower dollar and higher crude oil. Volatile July/November spread remains the dominant feature with tight soy stocks lifting July while likely increased U.S. soy plantings limit rallies in November.

USDA said 78 percent of the U.S. soybean crop had been planted, below trade estimates for 80 percent and below five-year average of 87 percent.

CBOT-SOYOIL - July up 0.05 cent per lb at 39.45. Gains in crude oil, weak dollar and higher soybeans lifting soyoil futures.

FCPO-JAKARTA, June 9 (Reuters) - Malaysian palm oil futures closed flat on Tuesday, giving up gains of up to around 1.6 percent, as speculation over falling exports in the first 10 days of June sparked some late selling, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange settled up 5 ringgit, or 0.2 percent, to 2,465 ringgit ($699.29) per tonne, after trading as high as 2,504 ringgit. Overall volume was 15,648 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 9 (Reuters) - Most Southeast Asian stocks ended
higher on Tuesday, with Singapore coming off a 1-week low and Indonesia rising almost 2 percent as heavyweight shares like Singapore Air and Bank Mandiri led the way.

Equities in the region fell earlier in the day as investors cashed in on recent rallies. Analysts said a weak U.S. dollar boded well for stocks and commodity prices.

Singapore's index <.FTSTI> closed up 0.7 percent, after sliding to a 1-week low in early trade. Indonesia's index <.JKSE> climbed 1.8 percent after a 1.1 percent fall on Monday, and Thailand's index <.SETI> rose 1.3 percent after opening lower.

Bucking the trend, Malaysia index <.KLSE> fell for a second day, down 0.1 percent after Malaysia's long-term local currency rating was cut to A from A-plus by Fitch Ratings.