Trader's Comment: Palm oil futures partially recovered from its earlier losses on late intra day covering.

Palm oil futures partially recovered from its earlier losses on late intra day covering. Benchmark Aug09 immediately dropped to intra day low of 2513 after opened RM52 lower at 2560, following the sharp fall of overnight NYMEX crude oil and CBOT soy oil. Statement made by top industry analyst Mr Dorab Mistry in the early morning failed to enhanced buying activities but managed to provide some support on the CPO prices from falling further. Prices then hovered between 2560-2520 through out most of the sessions before a wave of intra day short covering activities emerged in late trading and push Benchmark Aug09 to hit intra day high at 2603. At the closing bell, Aug 09 settled RM42 lower at 2570. Dalian palm ended more than 4% lower after trading at limit down prices while eCBOT soy oil managed to claw back its earlier losses to inched higher.

BReaking News-RTRS-Palm prices to surge as Asia chases cargoes -Mistry

KUALA LUMPUR, May 18 (Reuters) - Malaysian palm oil futures could soon surpass a key psychological level of 3,000 ringgit as Asian buyers hunger for more of the vegetable oil at a time of low stocks and weak output, a top industry analyst said on Monday.
China will buy more vegetable oil in the second half than the first as its 4 trillion yuan stimulus package has revived some consumption and current total shipments are 24 percent behind imports of 8.1 million tonnes last year, Mistry said.
But India will now drive palm and soyoil demand rather than China after the government scrapped import taxes for edible oils, starting with palm oil, last year. Mistry said purchases would hit 8.5 million tonnes for the oil year ending Oct. 2009.

Breaking News-RTRS-Russia sets 10 pct import duty on tropical oils

MOSCOW, May 15 (Reuters) - Russia will set a 10 percent tariff on imports of palm and coconut oil for a period of nine months to protect domestic dairy products producers, the government said on Friday on its Web site, www.government.ru.
The new tariff will become effective one month after an order setting is officially published in the government gazette, it said. Normally a publication takes place within days after the Web site announcement.

Breaking News-RTRS-India veg oil importers to fight new tax -report

NEW DELHI, May 15 (Reuters) - Indian vegetable oil importers will challenge a government order asking them to pay an extra 4 percent tax on imports, the Hindu Business Line newspaper reported on Friday.
The tax, called countervailing duty (CVD), is usually levied to protect local producers.
"There is no excise duty on edible oils. Therefore, the claims of CVD are not justified," the paper said quoting trade sources. Excise duty is a tax on domestic producers.
The customs department has asked many importers to pay the tax on vegetable oils brought into the country since Dec. 7, the paper said quoting unamed trade sources.

Breaking News-RTRS-China soy imports slow down amid ample supply-survey

BEIJING, May 15 (Reuters) - China's demand for imported soybeans will likely slow amid ample supplies and heavy imports in coming months, according to a survey by an official think-tank.

Trader's Highlight

DJI-NEW YORK, May 15 (Reuters) - U.S. stocks stumbled on Friday as energy shares dropped along with oil prices on worries about weak demand, overshadowing fresh reassuring economic data.

The Dow Jones industrial average <.DJI> declined 62.68 points, or 0.75 percent, to 8,268.64. The Standard & Poor's 500 Index <.SPX> dropped 10.19 points, or 1.14 percent, to 882.88. The Nasdaq Composite Index <.IXIC> eased 9.07 points, or 0.54 percent, to 1,680.14.

Data showed consumer prices were unchanged last month, while consumer confidence in May pushed to its highest level since Lehman Brothers' collapse last September, which sent shock waves through the financial system.

The reports, along with industrial output that declined at a slower pace, gave more signs that the recession's worst phase may be abating.

However credit card data was not so cheery, showing defaults rose in April to record highs, with Citigroup and Wells Fargo posting double-digit loss rates as the economy shed more jobs.

NYMEX-NEW YORK, May 15 (Reuters) - U.S. crude oil futures ended almost 4 percent lower on Friday amid demand worries following a pullback on Wall Street and as the dollar's safe-haven bets rose on fears that a global economic recovery may be far off.

On the New York Mercantile Exchange, June crude settled down $2.28, or 3.89 percent, at $56.34 a barrel, trading from $56.07 to $58.88. From a week ago, prices are down $2.29, or 3.9 percent. For the year, prices are up $11.74 or 26.3 percent from the Dec. 31 settlement at $44.60.

CBOT-SOYBEANS - July down 17 cents at $11.30-1/2 a bushel.

Profit-taking after hitting 7-1/2 month high this week weighs. Soy supported by tight stocks amid good demand for soy by China and low yields in the South American soy harvest.

CBOT-SOYOIL - July down 0.94 cent at 37.90 cents per lb. Spillover pressure from falling soybeans and lower crude oil.

FCPO-JAKARTA, May 15 (Reuters) - Malaysian palm futures closed lower for a second consecutive day on Friday, wiping out earlier gains of up to 2.6 percent, as volatile soy prices overshadowed the impact of strong exports, traders said.

The benchmark July contract settled down 21 ringgit, or 0.78 percent, at 2,663 ringgit ($750.77) per tonne, after running as high as 2,753 ringgit. Overall volume was 14,855 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, May 15 (Reuters) - Most major Southeast Asian stock
markets rose on Friday, recovering from recent falls as investors bought market heavyweights such as Singapore's CapitaLand, Malaysia's Tenaga Nasional and Thailand's Siam Commercial Bank.

Singapore's index <.FTSTI> gained 0.8 percent, recouping a 2.9 percent fall to a one-week low on Thursday, Malaysia <.KLSE> was up 0.2 percent, ending a four-day fall, and Thailand <.SETI> rose 1.4 percent after a 4.7 percent loss the day before.

DJI Weekly: May enter to a consolidation phase

Upward move looks has been slowing down after facing resistance at 8600 mark. Thus, market may enter into a consolidation phase in near term. Downside support is pegged at 7800-7700.

KLSE Weekly: Holding ground

Uptrend remains intact despite a week closing. As for now, we are looking for the upside resistance at 1037. To the downside, support is stood at 995-990.

FKLI Weekly: May due for consolidation

Prices easing off after failed to break through its recent high at 1038. Bull looks little tiredness and may due for consolidation in near term. To the upside, resistance remains is stood at 1038. Downside support is pegged at 1000 followed by 950.

FCPO Weekly: Facing tough resistance at 2800 mark

Bull seem facing tough resistance at 2800 mark as prices eased off after hitting fresh high at 2799. Nevertheless, up-trend remains holding well. We are now looking for the immediate downside support at 2600 followed by 2400 level.

Trader's Comment: Palm oil futures surrendered its earlier gains to lower on pre-weekend profit taking activities.

Palm oil futures surrendered its earlier gains to lower on pre-weekend profit taking activities. Prices initially showed some strong moves in the early trading following Private Cargo Surveyors ITS released its friendly export data that reported an increase of 1.7% for the period of 1-15 May. Benchmark July09 opened RM36 higher at 2720 and surged to intra day high of 2753 before morning close at 2740. However, the release of news during lunch break that the first case of A (H1N1) infection confirmed by Malaysia’s Health Ministry had given traders the excuse to sell aggressively for the remaining session. This sent Benchmark July09 to the intra day low of 2655 in late trading before it finally ended RM21 lower at 2665. External market turn mix in late Asian time trading. Dalian palm gave up its earlier gains to end lower while eCBOT soy oil inched slightly higher.

Breaking News-RTRS-UK firms struggle to sell "green" palm oil -AAK

KUALA LUMPUR, May 14 (Reuters) - The British unit of Swedish oils and fats manufacturer AarhusKarlshamn (AAK) may have to offer discounts on a consignment of eco-friendly palm oil that is too expensive for consumers, an official said on Thursday.
The slow uptake of palm oil sourced from estates in top producers Malaysia and Indonesia that do not clear rainforests and destroy wildlife reflects the difficulty in persuading price conscious shoppers to think green in the global economic crisis.
And manufacturers who want to use palm oil certified by the Roundtable for Sustainable Palm Oil (RSPO) have to additionally invest in building separate storage tanks and processors, said Judith Murdoch, marketing controller for AAK UK.

Trader's Highlight

DJI-NEW YORK, May 14 (Reuters) - U.S. stocks rose on Thursday as investors returned to financial and technology shares on bets the recent rally could have more room to grow after a brief pullback.

The Dow Jones industrial average <.DJI> added 46.43 points, or 0.56 percent, to 8,331.32. The Standard & Poor's 500 Index <.SPX> gained 9.15 points, or 1.04 percent, to 893.07. The Nasdaq Composite Index <.IXIC> climbed 25.02 points, or 1.50
percent, to 1,689.21.

Data showed the number of U.S. workers filing new claims for jobless benefits rose more than expected in the latest week, pushed up by plant shutdowns related to Chrysler's bankruptcy.

NYMEX-NEW YORK, May 14 (Reuters) - U.S. crude oil futures ended higher on Thursday as U.S. and European equities rose on hopes that a global recession may have bottomed, outweighing worries arising from a further downward revision by the International Energy Agency of its 2009 oil demand forecast.

On the New York Mercantile Exchange, June crude settled up 60 cents, or 1.03 percent, at $58.62 a barrel, trading from $56.55 to $59. Tuesday's $60.08 intraday peak was the highest since $62.28 was hit on Nov. 11.

CBOT-SOYBEANS - May expired up 16 cents at $11.66. July up 19-1/2 at $11.47-1/2.

Rallied to 7-1/2 month high as big export sales of U.S. soy and dwindling supplies continue to boost soybean futures in addition to support from low soy yields in drought-stricken South America,

NOPA April soybean crushings 134.115 million bushels versus March 137.257 million and above average estimate for 132.1 million.

CBOT-SOYOIL - May expired down 0.30 cent at 38.60. July down 0.32 at 38.84.

Pressured by big soyoil stocks in NOPA's April crush report, meal/soyoil spreading and lower crude oil market.

NOPA April soyoil stocks 2.710 billion lbs versus March 2.593 billion.

FCPO-KUALA LUMPUR, May 14 (Reuters) - Malaysian palm futures fell 3.8 percent on Thursday, retreating from a nine-month top hit the previous day, as investors booked profits on fears that palm oil would outpace soyoil prices due to supply concerns.

The benchmark July contract settled down 105 ringgit at 2,684 ringgit ($757.1) per tonne. Overall volume jumped to 17,659 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, May 14 (Reuters) - Singapore shares hit a one-week
low on Thursday, leading other Southeast Asian bourses lower in a market unsure about the global recovery, and Thailand ended an eight-day winning streak after MSCI cut its investment weighting.

Singapore's index <.FTSTI> closed down 2.9 percent at 2122.11, its lowest since May 6. Thailand's SET index <.SETI> dropped 4.7 percent, erasing part of a 16.9 percent surge over the past eight days. Malaysia <.KLSE> and Indonesia <.JKSE> ended at their lowest since May 6, falling 1.1 percent and 3.6 percent respectively.

DJI Daily: Struggling

Market was struggled to survive at 8000 mark. Thus, we remains cautious to the immediate technical outlook as violation of 8000 mark may turn the immediate outlook bias to downside potential. To the upside, resistance is maintain at 8600-8700.

KLSE Daily: Losing ground

Market losing ground a little and likely to move in sideways in near term. We now looking for the resistance at 1020-1030. To the downside, support is maintain at 1000.

FKLI Daily: Technically overbought

Market ended with a black candle after the recent rally due to technically overbought. Thus, consolidation phase likely to continue in near term. As for now, we are looking for the immediate upside resistance at 1013-1016 (gap left over on 14/5/2009). To the downside, we are looking for the physiological support at 1000 followed by 998-993.5 (gap left over on 4/5/2009).

FCPO Daily: Bull took a breathe

Market reversed from its previous day gains to end at day low after cover the downside gap leftover at 2738-2736. Bull looks may take a short term break to build up more energy for a sustainable rally. As for now, we are now looking for the upside resistance at 2799. To the downside, support is pegged at 2650 followed by 2620-2600.

Trader's Highlight

Palm oil futures tumbled from yesterday’s 9-month high on weak external factors. Benchmark July09 started to retreat from intra day high of 2759 in the early trading and continue to fall through out the day. It broke below 2700 psychological support level in late trading and finally settled RM105 lower at the intra-day low of 2684. Global vege oil market had showed weakness today along with NYMEX crude oil which traded more then $1 lower at below $57 level during Asian time trading. Dalian palm ended sharply lower while eCBOT soy oil also posted a loss. Spilled over selling interest from regional market also weighed on local CPO market.

Breaking News-RTRS-INTERVIEW-UPDATE 1-Malaysia IOI sees palm yields hurt by weather

KUALA LUMPUR, May 13 (Reuters) - IOI Corp, Malaysia's No 2. planter, said palm oil yields would fall by 5 percent due to a warm spell and that might push prices to 3,000 ringgit in the near term if there was an uptick in overseas demand.
Planters struggled to boost output in Malaysia last month and may continue to do so as oil palms also suffered biological stress after last year's strong harvests and low fertiliser use, IOI Executive Chairman Lee Shin Cheng said.

Breaking News-RTRS-UPDATE 1-Argentine exchange cuts soy outlook to 32.8 mln T

BUENOS AIRES, May 13 (Reuters) - Argentina's 2008/09 soy harvest is seen falling to 32.8 million tonnes, down from a previous estimate of 34 million tonnes because of continuing poor yields, the Buenos Aires Grains Exchange said on Wednesday.