Trader's Highlight

DJI-NEW YORK, Nov 20 (Reuters) - U.S. stocks plunged yet again on Thursday, as a frantic flight from risk prompted by investors' deepening economic fears drove the benchmark Standard & Poor's 500 index to its lowest level since 1997 -- completing the erasure of more than a decade of stock market gains.

The Dow Jones industrial average <.DJI> plunged 444.99 points, or 5.56 percent, to 7,552.29. The Standard & Poor's 500 Index <.SPX> lost 54.14 points, or 6.71 percent, to 752.44. The Nasdaq Composite Index <.IXIC> slid 70.30 points, or 5.07 percent, to 1,316.12.

The number of American workers on the unemployment rolls surged to the highest in a quarter century, government data showed, while a regional manufacturing gauge slumped as the economic misery intensified.

Democratic leaders said automakers can submit another plan by Dec. 2, adding that the proposal could be considered the week of Dec. 8.

NYMEX-NEW YORK, Nov 20 (Reuters) - U.S. crude futures ended below $50 a barrel on Thursday, hitting a 3-1/2-year low as the front-month December contract expired amid worries about a weakened economy further cutting oil demand.

On the New York Mercantile Exchange, December crude settled down $4, or 7.46 percent, at $49.62 a barrel, the lowest settlement since May 23, 2005, when prices ended at $49.16. It traded from $48.50 -- lowest since prices fell to $48.05 on May 23, 2005 -- to $53.30.

CBOT-SOYBEANS - January down 41 cents at $8.56. Soy down 4 percent and January hit a 3-1/2-week low on spillover pressure from falling stock markets and drop in crude oil. Fears of a deep global recession that would trim demand for soy weighing on market.

Argentina estimates 2008/09 soy plantings at a record 18 million hectares, up from 16.6 million year ago.

CBOT-SOYOIL - December down 1.34 cent at 30.63 cents per lb. Falling crude oil and stock markets weigh, in addition to spillover pressure from lower soybeans.

FCPO-JAKARTA/KUALA LUMPUR, Nov 20 (Reuters) - Malaysian palm oil futures inched lower on Thursday, pressured by faltering crude oil prices on fears of slowing demand, traders said.

News of stronger exports for Nov. 1 to 20 failed to reassure the market as the increase is seen as too small to substantially reduce stock levels, traders said.
But prospects of a possible drawdown in palm oil inventories as bad weather hits production from December curbed losses later on in the session.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange ended down 12 ringgit, or 0.8 percent, at 1,468 ringgit ($405) per tonne after going as low as 1,428 ringgit.

REGIONAL EQUITIES-BANGKOK, Nov 20 (Reuters) - Southeast Asian stock markets touched 3-week lows on Thursday as mounting global recession fears fuelled sell-offs in regional blue chips and political strife plagued Thai shares.

Thailand's main index <.SETI> fell 3.59 percent, its lowest level since Oct. 29. Singapore shares <.FTSTI> dropped 3.1 percent to its lowest point since Oct. 28, with banking shares topping the loss column.

Philippine shares <.PSI> lost 3.5 percent. Jakarta shares <.JKSE> fell for a fourth day to close down 2.15 percent. Malaysian shares <.KLSE> extended their losses for a third day, ending down 1.4 percent.

DJI Daily: new low

DJI plunged with another triple digit losses with created another new low. As for now, we look at the support at 7460-7416 (low since 10/6/2002) followed by 7197. While, resistance is at 8571-8637.

FKLI Daily: more downside room

Market comes to the end of its sideways move following prices violated the immediate support at 863 level and gives more room to downside potential. As for now, we look at the immediate support at 843-839.5 followed by 827.5. For upside, immediate resistance is at 859.5-868 (gap left over yesterday) followed by 891-895.5.

KLSE Daily: fail to hold ground

Market failed to hold ground following prices violated the immediate support at 868-867. Looks more room to downside potential with downside support is now looking at 850-848 followed by 837. While, upside resistance is at 869-876 (gap left over yesterday)followed by 884.

FCPO Daily: range bound trading

Range trading continue with immediate support is at 1400-1390 followed by 1331. While, immediate resistance is at 1505-1520 followed by 1563-1571 level.

Trader's Comment: CPO futures recouped some of its earlier losses on better export data to ends off low

CPO futures recouped some of its earlier losses on better export data to ends off low. Initially, Benchmark Feb09 opened RM38 lower at 1441 tracking overnight lower crude oil in NYMEX and easier rival soy oil in CBOT. Prices slid to hit intra day low at 1428 and hovered mostly between 1435 to 1450 through out most of the session. Basically, market was supported by better 1-20 export numbers released by both private cargo surveyors. News that Malaysia palm oil stocks may decline due to bad weather, coupled with government’s move to push for more bio-diesel and replanting scheme had prompted short covering activities emerged in late trading. This sent prices rebounding to settle at intra day high at 1468.

Breaking News-RTRS-INTERVIEW-Malaysia's swelling palm stocks to ease in Dec

KUALA LUMPUR, Nov 20 (Reuters) - Malaysia may see a decline in record stocks of palm oil from December as bad weather hits output and the government pushes forward with its biodiesel and replanting plans, an industry regulator said on Thursday.

Better food demand from top importers China, India and Pakistan next year could accelerate the decline in stocks in the world's second largest producer of the vegetable oil, Malaysian Palm Oil Board Chairman Sabri Ahmad said.

December would see 100,000 tonnes less palm oil from November as Sabah state on Borneo island and the eastern peninsular Malaysia, which account for 50 percent of total production, will be worst affected by the floods.

The government is likely to carry out its plans on biodiesel and replanting over a year in 2009 rather than taking two years or more, Sabri said.

"The biodiesel association has agreed to buy up 500,000 tonnes of crude palm oil in 2009," Sabri said.

Breaking News-RTRS-IMF approves $2.1 billion loan for Iceland

WASHINGTON, Nov 19 (Reuters) - The International Monetary Fund said on Wednesday its board approved a $2.1 billion loan for Iceland to try to stabilize what the fund called a "banking crisis of extraordinary proportions."
The two-year stand-by arrangement is structured so that Iceland can immediately draw about $827 million, with the rest in eight installments of about $155 million, subject to quarterly reviews.

Breaking News-RTRS-UPDATE 1-Sime enters China's palm oil refinery business

KUALA LUMPUR, Nov 19 (Reuters) - Malaysian conglomerate Sime Darby Bhd said it has teamed up with a Chinese firm to enter the palm oil refining and sales business in China.
Sime is expected to take a majority stake in a joint venture firm, along with Dongguan Sinograin Oils & Grains Co Ltd, a Chinese government-linked company.

Ttrader's Highlight

DJI-NEW YORK, Nov 19 (Reuters) - U.S. and European shares ended at five-and-a-half-year closing lows on Wednesday as a record drop in U.S. consumer prices and more dismal housing data stoked recession fears, driving a flight to safety.

Doubts about the prospect of a U.S. auto industry rescue added to America's weak economic outlook, further weighing on stocks and helping push the dollar down against the yen.

Markets are pricing in further rate cuts, with the U.S. Federal Reserve seen cutting another 50 basis points in December and figures derived from Eonia rates fully pricing in 75 basis points of European Central Bank cuts next month.

The Dow Jones industrial average <.DJI> closed down 427.47 points, or 5.07 percent, at 7,997.28. The Standard & Poor's 500 Index <.SPX> was down 52.54 points, or 6.12 percent, at 806.58. The Nasdaq Composite Index <.IXIC> was down 96.85 points, or 6.53 percent, at 1,386.42.

NYMEX-NEW YORK, Nov 19 (Reuters) - U.S. crude futures ended lower on Wednesday as weekly inventory data showed a larger-than-expected stock increase, offsetting an overall drawdown in distillate supplies.

On the New York Mercantile Exchange, December crude , which expires on Thursday, settled down 77 cents, or 1.42 percent, at $53.62 a barrel, the lowest settlement prices closed at $51.13 on Jan. 22, 2007.

CBOT-SOYBEANS - January down 5 cents at $8.97. Pressure from falling stock market but underpinned by dry weather in Argentina, the world's third largest soy exporter.

Soy continues to find support from tightening U.S. stocks, but gains limited by concern about demand during a global recession.

CBOT-SOYOIL - December down 0.31 cent at 31.97 cents per lb. Early gains clipped as stock market turned down.

FCPO-KUALA LUMPUR, Nov 19 (Reuters) - Malaysian palm oil futures ended 3.1 percent higher on Wednesday, after India hiked import tariffs for rival soyoil the prior day, heightening hopes for more demand although traders said palm oil was next for a rise.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange settled up 44 ringgit at 1,480 ringgit ($410) per tonne. Other traded months on Bursa Malaysia <0#KPO:> rose between 30 and 58 ringgit. Trading volume nearly doubled to 18,518 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Nov 19 (Reuters) - Most Southeast Asian stocks fell
on Wednesday as investors, spooked by weak corporate profit outlooks, sold financials and blue chips such as Singapore's DBS, Indonesia's Bank Rakyat and Thailand's top oil firm PTT.

Singapore's benchmark Straits Times Index <.FTSTI> closed down 1.59 percent to its lowest level since October 29.Indonesia's main stock index <.JKSE> drifted 0.8 percent lower at the close after earlier touching 1,159.96 points.Malaysia's main stock index <.KLSE> fell for a second day, down 0.62 percent, as palm plantation firm Sime Darby lost 0.78 percent and IOI Corp dipped 0.65 percent,despite a 2.2 perecent rise in Malaysian palm oil futures.

DJI Daily: plunged to the lowest in 5 1/2 year

DJI tumbles with more than 5% losses and again 8000 mark was unable to defend. Chart wise look ugly with a long black candle printed. As for now, support remains at 7882-7965 while resistance is at 8680-8684.

FKLI Daily: in cautious mode

Market is in cautious mode following prices extended its losing streak. A break below the immediate support at 863 may see more downside room and next support is at the recent low 803.5 level. For upside, immediate resistance is at 891-895.5 followed by 900-910.

KLSE Daily: losing ground

Market looks tiring to hold ground following prices continue to end weak. We look at the immediate support at 868-867 followed by 848-850. While, upside resistance is at 889-896 followed by 905-913 (gap left over since 5/11/2008).

FCPO Daily: trending sideways

Market continue to trend sideways with immediate support is at 1400-1390 followed by 1331. While, immediate resistance is at 1505-1520 followed by 1563-1571 level.

Trader's Comment: Palm oil futures edged higher due to India’s move to impose tax on crude soybean oil.

Palm oil futures edged higher due to India’s move to impose tax on crude soybean oil. Benchmark Feb09 opened RM4 higher at 1440 when traders began to speculate on the news that India government imposed 20% duty on rival soy oil, while imposing no duties at all on palm oil. This move could stimulate more demand on palm oil and may help to reduce the record high level of stocks. CPO prices merely hit the day low at 1438 after opened and there after continue to rally until afternoon session. News released by Hamburg-based oilseeds analysts Oil World, which forecasted that Malaysia’s 2009 palm oil production will only increased marginally, also help lifted some bullish sentiment in the market. Benchmark Feb09 hit the day high of 1493 before it encountered some profit taking activities in the later part of 2nd session. This saw CPO price eased off to hit 1461. Nevertheless, it managed to bounce back again to settle RM44 higher at 1480.

Breaking News-RTRS-POLL-Higher risk of Malaysia c.bank rate cut Monday

KUALA LUMPUR, Nov 19 (Reuters) - Malaysia's central bank
could cut its benchmark interest rate for the first time in five
years as soon as next Monday, a Reuters poll shows, although a
slight majority of analysts believe the central bank will wait.
Six of 11 analysts polled by Reuters expect Bank Negara
Malaysia to leave its overnight policy rate unchanged at 3.50
percent when it reviews policy on Monday.
Five said they expected the central bank to cut the rate by
25 basis points.

Breaking News-India Palm Oil Imports May Rise as Tax Makes Soybean Oil Costly

By Thomas Kutty Abraham
Nov. 19 (Bloomberg) -- India, the world's biggest buyer of vegetable oil after China, may increase palm oil imports after the government imposed a tax on purchases of crude soybean oil, the main substitute product, a trade body said.
A 20 percent duty has been imposed on overseas purchases of soybean oil, the finance ministry said late yesterday. Imports of the commodity were duty-free before.
``There will be more palm oil imports,'' said B.V. Mehta, executive director of the Solvent Extractors' Association of India, in a telephone interview from Mumbai. ``This is good news for palm oil growers in Indonesia and Malaysia at a time when they are grappling with huge stockpiles.''

USD/MYR: in up-swing mode

MYR chart still in up-swing mode. It just breaks the overhead resistance at 3.52 easily and heading to 3.580 to 3.590 (at 2nd resistance) as we mentioned in our 17/10/08’s comment. Its up-swing mode remain strong, may want to try the next resistance level between 3.640-3.690.

Breaking News-RTRS-Malaysian '09 palm oil output growth to slow-Oil World

HAMBURG, Nov 18 (Reuters) - Malaysia's 2009 palm oil output will rise only marginally following years of rapid growth, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Malaysia will produce 17.60 million tonnes of palm oil in calendar year 2009 against an estimated 17.56 million tonnes in 2008 and 15.82 million tonnes in 2007, it forecasts.

Breaking News-RTRS-Oil World cuts Brazil's soybean crop forecast

HAMBURG, Nov 18 (Reuters) - Brazil is likely to harvest 59.0 million tonnes of soybeans in early 2009, down one million tonnes from the previous forecast in October, Hamburg-based oilseeds analysts Oil World said on Tuesday.