Breaking News-RTRS-UPDATE 4-Federal Reserve says U.S. recovery is underway

WASHINGTON, Sept 23 (Reuters) - The Federal Reserve on Wednesday upgraded its assessment of the U.S. economy, saying growth had returned after a deep recession, while reiterating its promise to hold interest rates very low for a long time.
The Fed also said it would slow its purchases of mortgage debt to extend that program's life until the end of March, in a move toward withdrawing the central bank's extraordinary support for the economy and markets during the contraction.
The U.S. central bank, as widely expected, held its benchmark overnight lending rates at close to zero percent.

Trader's Highlight

DJI-NEW YORK, Sept 23 (Reuters) - U.S. stocks fell on Wednesday as investors worried the Federal Reserve is closer to pulling back on extraordinary measures to inject funding to shore up the economy.

The Fed's policy-setters met and kept interest rates unchanged, as expected, but they also said the U.S. central bank would slow purchases of mortgage debt to extend that program's life until the end of March. That was seen as a step toward a measured withdrawal of its extraordinary support for the economy during the downturn.

The Dow Jones industrial average <.DJI> shed 81.32 points, or 0.83 percent, to 9,748.55. The Standard & Poor's 500 Index <.SPX> declined 10.79 points, or 1.01 percent, to 1,060.87. The Nasdaq Composite Index <.IXIC> lost 14.88 points, or 0.69 percent, to 2,131.42.

NYMEX-NEW YORK, Sept 23 (Reuters) - U.S. crude futures closed nearly 4 percent lower on Wednesday, clearly stung by data showing unexpectedly large weekly increases in domestic crude oil and refined product supplies.

On the New York Mercantile Exchange, new front-month November crude settled down $2.79, or 3.89 percent, at $68.97 a barrel, trading from $68.57 to $71.81.

CBOT-SOYBEANS - November down 1-1/2 cents at $9.20-1/2 a bushel. Waning worries about a crop-killing frost next week weighing on markets but futures bounced from session lows as dollar weakened. Soybeans losing ground to corn as spreads adjust after months of soy gaining on corn. Large speculators hold a net long soybean position and are short corn which tends to trigger corn/soy spreading.

US Census Bureau to issue monthly crush data on Thursday. Traders expecting soybean crushings in a range of 118 million to 119.1 million bushels.

CBOT-SOYOIL - October down 0.35 cent at 34.16 cents per lb; December down 0.36 cents at 34.56. Weakness in crude oil market pressures prices.

FCPO-KUALA LUMPUR, Sept 23 (Reuters) - Malaysian crude palm oil futures dropped 2 percent on Wednesday as traders booked profits after a cargo surveyor reported an improvement in exports and vegetable oil markets weakened.

Benchmark December contract on the Bursa Malaysia Derivative Exchange settled down 44 ringgit at 2,146 ringgit ($620) a tonne. Overall volume more than doubled to 11,386 lots of 25 tonnes each compared to the usual 5,000 lots.

REGIONAL EQUITIES-BANGKOK, Sept 23 (Reuters) - Singapore's stock market ended
flat on Wednesday as big caps such as DBS Group and CapitaLand came under selling pressure, and other regional bourses were mixed, with Malaysian banks falling but Thai energy shares up.

Selling brought regional indexes down from their day's highs ahead of a U.S. Federal Reserve policy decision later in the day, with its post-meeting statement expected to provide direction on the economic outlook.

Malaysia <.KLSE> eased 0.2 percent after touching 15-month highs, weighed down by a 3.9 percent fall in Malaysia Mining Corp and a 2.1 percent loss in financial firm AMMB

Trader's Comment: CPO futures prices ended lower on profit taking activities.

CPO futures prices ended lower on profit taking activities. Benchmark Dec09 had been hovering in negative territory between 2172-2188 through out the morning session after opened RM10 lower at 2180, tracking the softer tone of eCBOT soy oil and Dalian palm in the early trading time. Although the released of Sep1-20 palm oil export data by private cargo surveyors SGS which reported an increase of 2.9% had reinforced market expectation of higher export in month end, however market sentiment did not improve in the second session but dampened further as traders took this opportunity to book their profit after last week’s rally. Prices continued to fall lower through out the second session and hit intra day low of 2142 before it settled RM44 lower at 2146. Daily volume was low with only 11,386 contracts traded as many traders are still off due to holidays.

FCPO Daily: Still in consolidation phase

Market is likely to continue its consolidation phase in near term. Thus, we maintain the upside resistance at 2200-2220 and downside support is pegged at 2119-2122 (leftover gap on 16/9/2009).

CBOT Soyoil Daily: Tight rangy mode

Market was moving in tight rangy mode into a consolidation mode. Thus, market may trade in range between USD35.20-35.30 to USD34.00

NYMEX Crude Daily: Losing ground

Market is losing ground further after few round failed to break through the overhead resistance at USD73 convincingly. Thus, consolidation phase is likely to extend provided underline support at USD67 is defended. Violation of it may weaken the overall immediate technical landscape.

SSE Daily: Tough resistance at 3,060-3,070

Market was facing tough resistance at 3,060 to 3,070 following prices failed to stay firm. Hence, market may due for a correction in near term. We are looking for the underline support at 2,640 levels, violation of it may provide more room to bias downside potential.

DJI Daily: In Positive tone

Market shy away after tested the recent high at 9,900 levels. However, overall market momentum remains in positive tone. Thus, we are now looking for the upside target at 10,000 levels. To the downside, support is maintain at 9600 levels.

FKLI Daily: Upward posture is maintaining well

Market gave up most of its gains after tested the fresh new high at 1232 levels. Bulls still maintain its upward posture without any sign of tiredness. Thus, we remain positive towards the near term market and upside resistance is adjusted to 1240-1250. To the downside, support is pegged at 1200.

Trader's Highlight

DJI-NEW YORK, Sept 22 (Reuters) - U.S. stocks rose on Tuesday, as investors bet the U.S. Federal Reserve will stick to its accommodative policy to foster economic recovery, boosting growth-sensitive sectors such as financials, technology and industrials.

The gains were broad-based, with all but three of the 10 S&P 500 industry sectors ending higher. Energy and other natural resources stocks were underpinned by resurgent global commodity prices as the U.S. dollar retreated.

The Federal Reserve began a two-day policy-setting meeting on Tuesday. Its policy statement is due on Wednesday around 2:15 p.m. (1815 GMT).

With no change expected in interest rates, investors probably will focus on the bank's assessment of the economic outlook, particularly after Chairman Ben Bernanke said last week that the recession was "technically" over.

The Dow Jones industrial average <.DJI> gained 51.01 points, or 0.52 percent, to end at 9,829.87. The Standard & Poor's 500 Index <.SPX> rose 7.00 points, or 0.66 percent, to 1,071.66 -- a fresh 11-month closing high. The Nasdaq Composite
Index <.IXIC> climbed 8.26 points, or 0.39 percent, to 2,146.30.

NYMEX-NEW YORK, Sept 22 (Reuters) - U.S. crude oil futures edged lower in post-settlement trading after industry data showed that domestic crude stocks rose slightly last week, against the forecast that supplies shrank.

On the New York Mercantile Exchange at 5:15 p.m. EDT (1715 GMT), November crude , the new front-month, was up $1.69, or 2.42 percent, at $71.62 a barrel. It earlier settled up $1.83, or 2.62 percent, at $71.76, trading $69.74 to $72.03.

October crude had expired and settled up $1.84, or 2.64 percent, at $71.55 a barrel, trading $69.61 to $71.85.

CBOT-SOYBEANS - November up 5-3/4 cents at $9.19-1/4 a bushel. Bounce in corn pulls soybeans up. Weak dollar, record export pace for 2009/10 marketing year and slowed Delta harvest supportive for soy. Prospects for a bumper U.S. soy harvest weigh.

SOYOIL - October up 0.45 cent at 34.22 cents per lb; December up 0.43 cents at 34.62. Recovery rally in crude oil lends strength to soyoil.

FCPO-JAKARTA, Sept 18 (Reuters) - Malaysian crude palm oil futures edged up on Friday, but were off their highs as investors squared positions in late trade, wary of exposure to possible weakness in external markets over the Eid al-Fitr Muslim holiday, traders said.

The benchmark December contract on the Bursa Malaysia Derivative Exchange settled up 8 ringgit, or 0.4 percent, at 2,190 ringgit ($629.67) a tonne, after running as high as 2,210 ringgit earlier in the day. Overall volume was at 13,522 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Sept 22 (Reuters) - Most Southeast Asian stock markets rose on Tuesday, with Thailand touching a 14-month high on demand for construction and energy stocks, but a plunge in Manila's MetroPac hit the Philippines, ending two days of gains.

Trading was generally muted, with Malaysia <.KLSE> and Indonesia <.JKSE> still closed for a long Muslim holiday.

Thailand's benchmark index <.SETI> climbed 1.6 percent, led by IRPC , Southeast Asia's biggest integrated petrochemical complex operator, which rose 5.6 percent and top builder Italian-Thai , which added 5.7 percent.

Singapore's index <.FTSTI> gained 1.4 percent, with Genting Singapore adding 9.5 percent, Singapore Telecommunications jumping 1.6 percent and property developer CapitaLand edging up 2.2 percent.

Shares of Wilmar International also rose 3 percent as the newspaper reported the plantation and palm oil processor would spin off its China food operation, raising up to HK$27.3 billion ($3.5 billion) in a flotation of shares in Hong Kong in October.

FCPO Weekly: Downside move has been slowing down a little

2000 level was well defended and downside move has been slowing down a little. Nevertheless, the overall immediate technical landscape remains weak. Thus, we maintain bearish view towards the near term market. As for now, immediate downside support is looking at 2063-2000 followed by 1980-1960. To the upside, resistance is pegged at 2250-2300 followed by 2330-2350.

CBOT Soyoil Weekly: still in Correction mode

Correction mode is still taking place. Therefore, we maintain the downside support at USD33.23 followed by 32.25-32.14. To the upside, resistance is pegged at USD37-37.50

NYMEX Crude Weekly: Consolidation mode is likely to extend

Consolidation mode is likely to extend in near term. A breakout of either USD75 or USD65.23 may provide more clearer direction.

SSE Weekly: remains sideways to lower

Market looks may continue to trade sideways to lower move in near term due to not much of improvement to the immediate weekly landscape. To the downside, immediate support is maintain at 2761 followed by 2640. To the upside, resistance is pegged at 3070 followed by 3170-3190.

FKLI Weekly: Uptrend remains intact

Uptrend remains intact. Thus, we continue to look for the upside resistance at 1230-1240 followed by 1270-1280. Downside support is pegged at 1190-1180 followed by 1160-1150.

Trader's Highlight

DJI-NEW YORK, Sept 17 (Reuters) - A measure of global stocks reached an 11-month high on Thursday as economic reports supported themes of recovery, pushing currency investors seeking riskier trades out of U.S. dollars.

But U.S. shares edged lower as some disappointing corporate profits reined in enthusiasm over an economy still seen as vulnerable to rising unemployment.

U.S. indexes shed early gains, with the Dow Jones industrial average <.DJI> down 0.08 percent to 9,783.92. The Standard & Poor's 500 Index <.SPX> declined 0.31 percent to 1,065.49, and the Nasdaq Composite Index <.IXIC> fell 0.15 percent, to 2,080.90.

NYMEX-NEW YORK, Sept 17 (Reuters) - U.S. crude futures ended slightly lower on Thursday, as demand worries amid high inventories offset positive economic data.

An early surge to above $73 fizzled out as traders saw the stock market fall back after rising on reassuring jobless claims and housing reports.

On the New York Mercantile Exchange, October crude settled down 4 cents, or 0.06 percent, at $72.47 a barrel, trading from $71.66 to $73.16.

CBOT-SOYBEANS - November up 2-1/2 cents at $9.53. Nearby months end up as China keeps buying U.S. soybeans with gains limited and pressure on deferred months amid waning worries about frost late next week in the United States that could have harmed the soybean crop.

CBOT-SOYOIL - October up 0.17 cent per lb at 34.55. Short-covering lends support.

FCPO-JAKARTA, Sept 17 (Reuters) - Malaysian crude palm oil futures were little changed Thursday, taking a breather after a two-day rally, as investors squared positions ahead of a long holiday weekend, traders said.

The benchmark December contract on the Bursa Malaysia Derivative Exchange edged up 1 ringgit, or 0.05 percent, at 2,182 ringgit ($629.18) a tonne. Overall volume was 12,959 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Sept 17 (Reuters) - Some Southeast Asian stock markets posted small gains on Thursday after U.S. data brought more signs of recovery, but both Singapore and Thailand failed to hold on to early rises, ending lower.

some investors were quick to book profits and Singapore's index <.FTSTI> closed down 0.07 percent. Thailand <.SETI> lost 0.14 percent. But Malaysia's index <.KLSE> was up 0.5 percent and Indonesia <.JKSE> rose 0.72 percent ahead of a long Muslim holiday starting Friday. It will resume trade next Thursday. The Philippines <.PSI> snapped a three-day fall to finish up 0.12 percent while Vietnam <.VNI> extended its gains into a sixth
day, adding 0.8 percent to its highest since Aug. 27, 2008.

FCPO Daily: Consolidation is taking place

Consolidation mode is likely to extend in near term. Thus, we maintain the upside resistance at 2200-2220 and downside support is pegged at 2119-2122 (leftover gap on 16/9/2009).

CBOT Soyoil Daily: Sideways to bias upside potential

Market momentum strengthen further following prices continue to improve. Hence, market may move into sideways bias to little upside potential in near term. To the upside, resistance is pegged at USD36.19. While, downside support is adjusted to maintain at USD33.00.

NYMEX Crude Daily: Consolidation phase likely to continue

Market tested the USD73 at intra-day basis but not closing. Thus, consolidation phase is likely to continue in near term unless a more significant breakout from the either USD73 or USD67 levels respectively to give a more clearer direction.

SSE Daily: May move higher

Market continue to edge higher and tested the immediate resistance at 3060. Thus, we continue to stick to positive view towards the near term market provided immediate resistance at 3060-3080 violated convincingly. Next resistance will be followed by 3150. While, downside support is maintain at 2900 levels.