Breaking News-DJN--Malaysia's palm oil inventories may fall to anywhere between 1.6 million and 1.7 million metric tons during the next few months

KUALA LUMPUR (Dow Jones)--Malaysia's palm oil inventories may fall to anywhere
between 1.6 million and 1.7 million metric tons during the next few months due
to heavy rains which are slowing down output, Minster For Plantation Industries
and Commodities Peter Chin said Tuesday.
"Demand ahead of the summer months is strong, but production has slowed down,
and February is a shorter month, which can bring down the stock levels," Chin
said on the sidelines of a conference on palm oil.
Malaysia's palm oil stocks at the end of December are estimated at 1.99
million tons.

Breaking News-RTRS-Malaysia's Proton may sell stake to foreign company

KUALA LUMPUR, Jan 12 (Reuters) - Malaysia's national car company Proton Holdings may sell a controlling stake to a foreign carmaker, company Chairman Nadzmi Mohd Salleh told the Business Times newspaper.
"If Proton is a problem child, we have to let it go," Nadzmi told the paper in an interview published on Monday.
"But if you want to enhance Proton's capability and also the viability over a period of difficult times, then the collaboration with the foreign car makers has to take a different form," Nadzmi was quoted by the paper as saying.

Trader's Highlight

DJI-NEW YORK, Jan 12 (Reuters) - U.S. stocks fell on Monday as concerns about massive credit losses at Citigroup knocked its shares 17 percent lower, dragging down bank stocks, and on fears of a dismal fourth-quarter earnings season.

A Wall Street Journal report that Citigroup could report more than $10 billion in fourth-quarter operating losses struck a blow to other banks on fears of a fresh round of losses from the credit crisis.

The Dow Jones industrial average <.DJI> fell 125.21 points, or 1.46 percent, to 8,473.97. The Standard & Poor's 500 Index <.SPX> dropped 20.09 points, or 2.26 percent, to 870.26. The Nasdaq Composite Index <.IXIC> lost 32.80 points, or 2.09
percent, to 1,538.79.

Investors fear that Citigroup is looking to sell one of its best assets because it needs cash. Adding to concerns on Citigroup was news that the embattled U.S. bank is nearing a deal to sell a controlling stake in its Smith Barney retail brokerage business to Morgan Stanley

In response to the faltering economy, President-elect Barack Obama asked President George W. Bush to seek from Congress the remaining $350 billion of the $700 billion
financial industry bailout, and he agreed to do so, the White House said.

NYMEX-NEW YORK, Jan 12 (Reuters) - U.S. crude oil futures ended down nearly 8 percent on Monday on demand concerns, in a follow-through of Friday's sharp losses spurred by a gloomy jobs report.

On the New York Mercantile Exchange, February crude settled down $3.24, or 7.94 percent, at $37.59 per barrel, after trading from $37.48 to $40.80.

CBOT-SOYBEANS - January down 83-1/2 cents at $9.54 a bushel, March off 70 cents at $9.66.

Collapsed on USDA's bigger-than-expected U.S. soy stocks data. January in delivery and trading without limits. Falling crude weighs.

USDA reported Dec. 1 soy stocks at 2.276 billion bushels, above average trade estimate of 2.182 billion.

Bigger number reflected a larger 2008 U.S. soy crop of 2.959 billion bushels, above the average of trade estimate for 2.913 billion and USDA November forecast for 2.921 billion.

USDA revised upward its 2008/09 U.S. soy ending stocks figure by 20 million bushels to 225 million.

CBOT-SOYOIL - January down 2.32 cents at 34.18 cents a lb, March off 2.31 at 34.41 cents. Following soybeans and crude oil lower.

USDA raised 2008/09 U.S. soyoil end stocks forecast by 110 million lbs to 2.143 billion despite decreased production.

FCPO-JAKARTA, Jan 12 (Reuters) - Malaysian palm futures rose 3.5 percent on Monday after the industry regulator announced a drop in end-December palm oil stocks from a record high the month before, traders said.

The rally was also underpinned by news that Malaysian palm oil exports for the first 10 days of January came within market expectations, although shipments fell from the same period in December.

The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange rose 68 ringgit, or 3.5 percent, to 1,988 ringgit ($5570) per tonne.

Other traded contracts rose between 60 ringgit and 86 ringgit. Overall volume was 9,469 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Jan 12 (Reuters) - Singapore shares fell to a one-week low on Monday amid worries about DBS Group's exposure to a defaulting Kuwaiti lender, and most other Southeast Asian markets dropped on fears of a deepening U.S. recession.

Singapore's index <.FTSTI> fell for a fifth day, down 1.7 percent to its lowest since Jan. 2, with bank DBS Group sliding 3.7 percent on speculation about its exposure to Global Investment House , even though DBS denied any exposure.

Malaysia bucked the trend and its index <.KLSE> ended up 0.5 percent, adding to a 0.94 percent rise on Friday, with outperformers including Telekom Malaysia , up 4.6 percent, and fourth-largest lender RHB Capital , up 1.95
percent.

DJI Daily: No improvement

Market continue to losing ground with another negative closing. A break below the immediate support at 8372-8347 may prompted some sell off activities. Meanwhile, upside resistance is at 9000-9088.

KLSE Daily: Upside move slowing down

Market looks had slowing down a little its upside move. We now looking at the resistance 936. Downside support is pegged at 910-907 followed by 901-897 (gap left over on 5/1/2009).

FKLI Daily: Losing a little strength

Market looks losing a little strength following prices retreated further. Bull may want to take a breathe after the recent rebound. We naintain our upside resistance at 942.5. Downside support is pegged at 917.5-910 followed by 903.5-901 (gap left over on 5/1/2009).

FCPO Daily: Gaining ground

Market extended its wining streak to further gaining ground on its upward momentum and looks may want to challenge its recent high at 2058 level. For downside, support is pegged at 1903-1900 followed by 1868-1864.

Trader's Comment: Lower inventory released by MPOB led CPO futures to finish generally higher

Lower inventory released by MPOB led CPO futures to finish generally higher. Players were discounting lower 1-10 Jan09 export figures released by private cargo surveyors. MPOB put palm oil stocks in December08 fall 11.98% to 1.99 million tonnes from a revised 2.26 million tonnes in November08. This provided some confidence to the bull as end-stocks below 2million. Private cargo surveyors released their 1-10 Jan09 export figures were more or less within market expectation and ignored by market players, SGS pegged 1-10 Jan09 export down 37% at 384,842 from Dec08 at 619,180 tonnes. Last Friday’s strong closed at soy complex in CBOT provided a positive tone to BMD a good start in the early session. Benchmark Mar09 finally settled RM68 higher at 1988 after trading between 1935 to 1988.

Breaking News-RTRS-China doubles domestic soy purchase, buys more rice

BEIJING, Jan 12 (Reuters) - China will double its purchases of domestic soybeans by buying an additional 3 million tonnes for state reserves in a bid to shore up domestic prices, according to an official annoucement posted on a government Web site on Monday.
China's earlier purchases had prompted many crushers shift to cheap U.S imports.
The government will also expand its purchases of rice, buying an additional 5 million tonnes of rice for reserves, according to the statement posted on the central government Web site (http://www.gov.cn/gzdt/2009-01/12/content_1202534.htm).

Trader's Highlight

DJI-NEW YORK, Jan 9 (Reuters) - U.S. stocks fell on Friday after government data showed the labor market deteriorated further in December, raising investor concerns about the outlook for profits, spending and a deepening recession.

The Dow Jones industrial average <.DJI> ended down 143.28 points, or 1.64 percent, to 8,599.18. The Standard & Poor's 500 Index <.SPX> slid 19.38 points, or 2.13 percent, to 890.35. The Nasdaq Composite Index <.IXIC> fell 45.42 points, or 2.81
percent, to 1,571.59.

U.S. employers slashed 524,000 jobs from payrolls in December, less than the 550,000 seen in a Reuters poll, but still bringing total job losses for 2008 to 2.6 million, the most since 1945.

NYMEX-NEW YORK, Jan 9 (Reuters) - U.S. crude oil futures ended down for the third straight session on Friday as demand worries persisted after December jobless data showed that the national unemployment rate rose to the highest level in 16 years.

Losses were pared near the close in a spurt of pre-weekend short-covering and as signs pointed to a possible resolution to the Russia-Ukraine contract dispute over natural gas.

On the New York Mercantile Exchange, February crude settled down 87 cents, or 2.09 percent, at $40.83 a barrel, trading from $39.38 to $42.70. For the week, prices fell $5.51, or 11.89 percent.

CBOT-SOYBEANS - January up 48-1/2 cents at $10.37-1/2 a bushel, March up 46-1/2 at $10.36. Forecasts for hot and dry weather in Argentina and in several key crop areas of Brazil rally soybeans. Soy climbs despite falling crude oil and U.S. stock market.

CBOT-SOYOIL - January up 0.98 cent at 36.50 cents a lb, March up 0.94 at 36.72. Lifted by strength in soybeans amid South American crop weather concerns.

FCPO-JAKARTA, Jan 9 (Reuters) - Malaysian palm futures rose on Friday, but came off their highs in late trade amid caution over export performance.

The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange closed up 55 ringgit, or 3.0 percent, at 1,920 ringgit ($5) per tonne, off an intra-day high of 1,948 ringgit.

Other traded contracts rose between 15 ringgit and 48 ringgit. Overall volume was 15,133 lots of 25 tonnes each.

REGIONAL EQUITIES-Southeast Asian markets ended mixed ahead of U.S. job data.
Singapore's Straits Times Index <.FTSTI> fell 1.2 percent to a one-week low, with banks leading decliners.

Malaysia ended higher, its index <.KLSE> adding 0.9 percent, with palm plantation firm IOI Corp up 0.5 percent as Malaysian palm futures rose after a rebound in crude oil.

DJI Weekly: Holding ground

Market remains to hold ground and move in sideways manner. Consolidation phase looks likely to continue in near term market. Resistance and support is at 9284-9159 and 8347-8372 level respectively.

KLSE Weekly: Firm above 900 mark

Market momentum strengthened further following market manage to stay firm above 900 mark. We maintain our sideways to higher view in near term market. As for now, we are looking for the upside resistance at 963. Downside support is pegged at 901-897 (gap left over since 4/1/2009).

FKLI Weekly: Sideways to Higher in near term.

Market extended its wining streak with another long white candle printed. Chart wise, market looks may continue its sideways to higher move in near term market. Currently, we look for the resistance at 960. downside support is pegged at 903.5-901 (gap left over since 4/1/2009).

FCPO Weekly: Bottoming Out

Market surged to cover the full gap at 1902-1934 had given sign of bottoming out. Market looks may continue to move higher with upside target at 2200-2235 for near term market. While, downside support remains at 1625-1596 (gap left over since 28/12/2008).

Trader's Comment: CPO futures recovered from yesterday’s weak closed to end generally higher after trading in narrow range.

CPO futures recovered from yesterday’s weak closed to end generally higher after trading in narrow range. Generally, players were cautious ahead weekend and some important data due to release early next week. MPOB will release its official Dec08 supply & demand data on Monday while private cargo surveyor will issue their 1-10 Jan09 export number, which expects to be around 350k-400k. Benchmark Mar09 was trading in a narrow range between 1903 to 1948 before it settled RM55 higher at 1920. Firmer eCBOT and steady crude oil prices also provided some support to the market.

Breaking News-RTRS-POLL-Malaysia Dec palm stocks seen down 13.3 pct from record

RTRS-MALAYSIA'S END-DEC STOCKS SEEN EASING FROM RECORD LEVELS, DOWN 13.3 PCT FROM NOV - REUTERS POLL
RTRS-MALAYSIA'S DEC PALM OIL OUTPUT SEEN DOWN 9.6 PCT FROM NOV - POLL
RTRS-MALAYSIA'S DEC PALM OIL EXPORTS SEEN UP 20.7 PCT FROM NOV - POLL

Breaking News-RTRS-Malaysia plans to announce another economic stimulus package this year

KUALA LUMPUR, Jan 8 (Reuters) - Malaysia plans to announce another economic stimulus package this year after last year's $2 billion package, the country's Second Finance Minister said, according to a newspaper report on Thursday.
"The Prime Minister has given the directive to begin preparing another package," Nor Mohamed Yakcop said in a television interview, according to the Star newspaper.

Breaking News- KLCI Unlikely To Clinch 1,000 Mark This Year-Bernama

KLCI Unlikely To Clinch 1,000 Mark This Year

KUALA LUMPUR, Jan 7 (Bernama) -- The Kuala Lumpur Composite Index (KLCI) is unlikely to clinch the 1,000 mark this year amid uncertainties in the global economy.

OSK-UOB Unit Trust Management Bhd chief executive officer, Ho Seng Yee, said the KLCI was expected to trade between 850 and 960 this year.

The KLCI recorded an intra-day high of 936 at today trading.

"The local stock market is expected to see less volatile trading in the second half of this year as the stimulus packages introduced by the governments worldwide are expected to show effects," he told reporters after launching its first fund of the year, OSK-UOB Capital Protected KLCI Advantage Fund, here today.

Ho said the Malaysian government needed to pump prime further to sustain economic growth and regain foreign investor confidence.

KLCI fell by 39 percent last year, dragged down mostly by foreign investors' sell-off.

He expected the market to be quiet once the Chinese New Year festivities were over amid lack of interest due to global uncertainties.

Ho said last year has been volatile with the markets down a lot and governments worldwide introduced stimulus packages.

"These packages need at least six to nine months before they can show a positive impact.

"Given that scenario, the market is expected to be able to hold on at this level and will gradually improve," he said.

-- BERNAMA

Breaking News-RTRS-UPDATE 1-Dry weather to reduce Brazil soy, corn crops

SAO PAULO, Jan 8 (Reuters) - Brazil's Agriculture Ministry on Thursday trimmed its estimate for the 2008/09 (Oct/Sept) soybean crop to 57.8 million tonnes, from an estimate of 58.8 million tonnes in December, citing unfavourable weather.

Breaking News-RTRS--UPDATE 1-Informa sees smaller 2008 U.S. corn crop

CHICAGO, Jan 8 (Reuters) - Consulting firm Informa Economics on Thursday projected a smaller 2008 U.S. corn crop at 12.001 billion bushels, reflecting an average yield of 153.5 bushels per acre, trade sources said.
Informa estimated the 2008 U.S. soy crop at 2.951 billion bushels, with an average yield of 39.7 bpa.
The estimates compare with USDA's current corn output forecast of 12.02 billion bushels and average yield of 153.8 bpa, and USDA's soybean forecast at 2.921 billion bushels and yield of 39.3 bpa.