Trader's Comment: Palm oil futures ended below 2000 level on weak export rumors.

Palm oil futures ended below 2000 level on weak export rumors. The weakness shown in eCBOT soy oil and Dalian palm during the early trading had given traders an excuse to book their overnight profit. This led Benchmark Jun09 to open RM25 lower at 2002. It was initially well supported as it immediately bounced to intra day high of 2028 and closed at 2021 before lunch. However, market talk that export figures which will be released tomorrow may decline to around 875k tonnes level (ITS put 1-20Feb export at 1,000,678 tonnes) had triggered some aggressive selling activities after second session resumed. Benchmark Jun09 slid to intra day low of 1978 before it finally settled RM50 lower at 1980.

Trader's Highlight

DJI-NEW YORK, March 24 (Reuters) - U.S. stocks slid on Tuesday as investors paused to reassess the likely success of the government's latest plans to clean up bank balance sheets and revive the financial system, a day after initial euphoria over
the plan drove huge gains.

The Dow Jones industrial average <.DJI> was down 115.65 points, or 1.49 percent, at 7,660.21. The Standard & Poor's 500 Index <.SPX> was down 16.59 points, or 2.02 percent, at 806.33. The Nasdaq Composite Index <.IXIC> was down 37.43 points, or
2.41 percent, at 1,518.34.

NYMEX-NEW YORK, March 24 (Reuters) - U.S. crude oil futures fell back in post-settlement trading on Tuesday after industry group American Petroleum Institute said domestic crude stocks last week rose much more than analysts had forecast.

On the New York Mercantile Exchange, May crude at 4:55 p.m. EDT (2055 GMT), was down 42 cents, or 0.78 percent, at $53.38 a barrel. It had settled up 18 cents, or 0.33 percent, at $53.98, the highest settlement since Nov. 28 when it closed at $54.43. It traded from $52.45 to $54.20, a fresh intraday high for 2009 and the highest since $54.62 was struck on Dec. 1.

CBOT-SOYBEANS - May up 11-1/2 cents at $9.67 per bushel.

Nearbys supported by Argentine farmer strike that is shifting soy export business to the United States and away from that South American country. Backs pressured by falling crude and Dow.

CBOT-SOYOIL - May up 0.17 cent per lb at 33.27 cents per lb. Gains in soy supportive in addition to commercial buying.

FCPO-JAKARTA, March 24 (Reuters) - Malaysian crude palm oil futures dropped 2.5 percent on Tuesday amid fears that a fall in exports might have steepened in the first 25 days of March on weak demand, traders said.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange dropped 50 ringgit to 1,980 ringgit ($547) per tonne.

Other traded months were lower, except for November which rose 0.6 percent. <0#KPO:>. Overall volume was 12,465 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, March 24 (Reuters) - Most Southeast Asian stock
markets rose on Tuesday, boosted by Washington's plan to clear the banking system of toxic assets, which spurred Wall Street's biggest gain since late October.

Singapore's stock index <.FTSTI> ended up 2.5 percent after touching a six-week high, adding to Monday's 4.2 percent surge. Indonesia's index <.JKSE> climbed 2.09 percent, touching its highest level in almost three months

Malaysian shares <.KLSE> drifted 0.04 percent lower, ending a five-day rally as investors dumped Sime Darby , down almost 1 percent after a drop in palm oil prices.

DJI Daily: Tough resistance at 7800-8000

Market is making an effort to test the tough resistance at 7800-8000. However, more strength is needed to maintain the current posture. We maintain the upside resistance at 7800-8000. Downside support is remain at 7100-7000.

KLSE Daily: Maintain sideways to upside bias posture

Market maintain its sideways to upside bias posture. As for now, resistance is at 900. While, downside support is stood at 870-868.

FKLI Daily: Sideways to higher move remain intact

Immediate daily technical landscape remains positive despite a negative close. Thus, we maintain our view sideways to higher move in near term market. We are now looking for the resistance at 900. Support is pegged at 870-865.

FCPO Daily: Bull taking a breathe

Market fully covered the downside gap left over at 2002-1985 to close in negative territory. Bull took a breathe after two days sharp rise and it views as a healthy correction in order for a longer lasting rally. Upside resistance remained at 2058 followed by 2100-2150. While, downside support is pegged at 1950-1945 followed by 1900.

Breaking News-RTRS-Argentine farmers strike against government soy tax

BUENOS AIRES, March 23 (Reuters) - Argentine farmers refused to sell their grains and livestock on Monday in a commercial strike aimed at pressuring the government and Congress to lower export taxes on soy, the country's top crop.
Farmers are angry over the government's refusal to reduce soy levies, even though global prices for the oilseed have slid and a drought has cut production. The battle over soy taxes first flared one year ago, and it has escalated ahead of mid-term congressional elections.

Trader's Highlight

DJI-NEW YORK, March 23 (Reuters) - U.S. stocks surged around 7 percent on Monday after the Obama administration detailed a plan to purge toxic assets from bank balance sheets, fueling optimism about a revival in bank lending and driving double-digit gains in financial shares.

The Dow Jones industrial average <.DJI> jumped 497.48 points, or 6.84 percent, to 7,775.86 and the Standard & Poor's 500 Index <.SPX> surged 54.38 points, or 7.08 percent, to 822.92. The Nasdaq Composite Index <.IXIC> spiked 98.50 points, or 6.76 percent, to 1,555.77.

An unexpected rise in housing sales, seen as a key factor in spurring an economic recovery, also boosted sentiment. Data showed the pace of sales of existing homes in the United States rose 5.1 percent in February, the biggest increase since July 2003.

NYMEX-NEW YORK, March 23 (Reuters) - U.S. crude oil futures rose more than 3 percent on Monday, as Wall Street and global stock markets rallied on a U.S. plan to buy up distressed assets to tidy up bank balance sheets.

On the New York Mercantile Exchange, May crude settled up $1.73, or 3.32 percent, at $53.80 a barrel, trading from $51.62 to $54.05, highest since $54.62 was struck on Dec. 1, 2008.

CBOT-SOYBEANS - May up 3-1/2 cents at $9.55-1/2 a bushel.

Ended firm but well below the day's five-week high with late pressure from farmer selling. But, ended firm on concerns over slow exports from Argentina as tensions mount between farmers and government.

CBOT-SOYOIL - May up 0.85 cent at 33.10 cents per lb.

Following soybeans with higher equities supportive. But market well below the day's highs on a late sell-off.

FCPO-JAKARTA, March 23 (Reuters) - Malaysian crude palm oil futures rose 2.3 percent to their highest close in nearly six months on the back of fund buying, with stronger crude oil and soy prices weighing on sentiment, traders said.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange rose 45 ringgit to 2,030 ringgit ($558) per tonne, the first time it closed above 2,000 ringgit since September. The previous high was 2,090 ringgit set on Sept. 30.

The benchmark contract briefly hit an intraday high of 2,051 ringgit, a level unseen since Jan. 8.

Other traded months rose between 30 and 70 ringgit. Overall volume was 17,506 lots of 25 tonnes each versus the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, March 23 (Reuters) - Most Southeast Asian stock
markets rose to multi-week highs on Monday, as Washington's plan to rid U.S. banks of toxic assets bolstered banking shares across the region.

Southeast Asia's largest bank, DBS Group rose 3.2 percent, while Malaysia's largest lender, Maybank , surged 5 percent, and Indonesia's Bank Mandiri Tbk jumped 10.8 percent.

Singapore's benchmark Straits Time Index <.FTSTI> closed up 4.21 percent at its highest closing level since Feb. 16, while Thailand's main SET index <.SETI> ended up nearly two percent, reaching a 4-week high.

Indonesia's main stock index <.JKSE> rose 3.36 percent to a 10-week closing high, while Malaysia's main stock index <.KLSE> rose for the fifth consecutive day, adding 2.51 percent to a three-week high.

DJI Daily: DJI soared

A triple digit up of more than 6 per cent had helped to neutralise the immediate technical outlook. However, more effort is needed to breakout from the resistance of 7800-8000 in order to have a stable momentum. Downside support is pegged at 7100-7000.

KLSE Daily: Gaining ground

Market gaining ground with a long white candle printed had turned the immediate technical landscape looks positive. As for now, resistance is at 883-888. While, downside support is stood at 856-857 (gap left over on 23/3/2009).

FKLI Daily: Eyeing 900 mark

A long white candle printed had added strength to the market momentum. Resistance at 875-880 had been violated, thus market likely to move sideways to higher in near term. We now looking for the resistance at 886-888.5 (left over gap since 2/3/2009) followed by 9000. Support is pegged at 861.5-860.5 (gap left over on 23/3/2009).

FCPO Daily: 2000 mark looks firm!

Market strengthened further as prices managed to stay firm above 2000 mark. Market looks has slowly built up its concrete base to move higher in near term. Upside resistance is stood at 2058 followed by 2100-2150. While, downside support is pegged at 2002-1985 (gap left over on 23/3/2009).

Trader's Comment: CPO futures rallied to 10 week high but ended off its high on profit taking.

CPO futures rallied to 10 week high but ended off its high on profit taking. Benchmark Jun09 surged to intraday high of 2051 in the afternoon session before some intraday profit taking activities emerged and sent prices to ease off slightly before it settled RM45 higher at 2030. Global commodity prices including vege oil market had been rising steadily due to continuous weakening of the US dollar. eCBOT soy oil and Dalian palm also rallied strongly since early Asian time trading. This led Benchmark Jun09 to jump immediately above 2000 during opening bell to open RM25 higher at 2010 and was well supported at that level through out the day. The bullish sentiment in CPO market was also enhanced by trader’s expectations that palm oil stock may continue to decline this month despite lower export recently reported by private cargo surveyors.

Breaking News-RTRS-UPDATE 2-Argentina gives provinces a share of soy taxes

BUENOS AIRES, March 19 (Reuters) - Argentina's president unveiled a plan on Thursday to share soy export tax revenue with provincial governments, in what farmers called a ploy to broaden support for a levy they despise.
Center-left President Cristina Fernandez said 30 percent of soy tax proceeds would go to the provinces, estimating the annual sum at $1.78 billion. This would boost provincial income from shared revenue by 11 percent, she added.
But farm leaders who are lobbying Congress for lower soy export taxes rejected the measure, raising the specter of fresh protests as part of a year-long standoff over government policy.

Breaking News-RTRS-Soyoil may outpace palm on India import tax cut-Mistry

KUALA LUMPUR, March 20 (Reuters) - India, a top vegetable oil importer, may see prices of imported soyoil keep their premium over rival palm oil due to increased demand after a cut in soyoil import duties, a leading analyst said on Thursday.
Dorab Mistry, head of vegetable oil purchasing with Indian conglomerate Godrej International, said the world's second-largest consumer of vegetable oil after China may import up to 1.5 million tonnes of soyoil from Nov 2008 till Oct 2009.
Soyoil imports were originally estimated by traders to be about 1.4 million tonnes for the period.

Trader's Highlight

DJI-NEW YORK, March 20 (Reuters) - U.S. stocks fell on Friday, as long-standing worries about the health of the banking system resurfaced and a brokerage said American Express may post yearly losses and cut its dividend.

The Dow Jones industrial average <.DJI> dropped 108.01 points, or 1.46 percent, to 7,292.79. The Standard & Poor's 500 Index <.SPX> fell 15.56 points, or 1.98 percent, to 768.48. The Nasdaq Composite Index <.IXIC> lost 31.51 points, or 2.12 percent, to 1,451.97.

NYMEX-NEW YORK, March 20 (Reuters) - U.S. crude oil futures slipped on Friday, after seesawing as the front-month April contract went to expiration and following crude oil's strong rally the previous session.

On the New York Mercantile Exchange, expiring April crude fell 55 cents, or 1.07 percent, to settle at $51.06 a barrel, trading from $50.30 to $52.13, just below Thursday's $52.25 high, which was a 2009 front-month intraday peak.

CBOT-SOYBEANS - May up 11-1/2 cents per bushel at $9.52 per bushel. Support from conflict between Argentine government and farmers over government's export tax on soy and on news China bought more soy from the U.S.

CBOT-SOYOIL - May up 0.36 cent per lb at 32.25 cents per lb. Following soy with gains limited a bit of a rebound for dollar after its plunge at mid-week.

FCPO-KUALA LUMPUR, March 20 (Reuters) - Malaysian crude palm oil futures rose 3.9 percent on Friday as crude oil's surge in the previous session sent a flood of buyers in through global vegetable oil markets from China to the United States.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange rose 74 ringgit to 1,985 ringgit ($543.8) per tonne, a level unseen since March 11.

Other traded months rose between 52 and 110 ringgit. Overall volumes more than doubled to 24,509 lots of 25 tonnes each versus the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, March 20 (Reuters) - Southeast Asian stock markets
edged higher on Friday, with rises in oil prices driving gains in energy-related firms such as Keppel Corp and PTT PCL , sending Singapore and Thailand to three-week highs.

Singapore's benchmark Straits Time Index <.FTSTI> rose 0.76 percent to its highest close since Feb. 26 due to demand for energy-related stocks and some final-hour buying of major banks.

Indonesia's main stock index <.JKSE> rose 1.44 percent and earlier touched its highest since Jan. 19.

Malaysia's main stock index <.KLSE> was in the red in morning trade but turned round to climb 0.54 percent to a two-week closing high.

Weekly DJI: Looking for a base support

Market is searching for a base support to cushion from the current weak technical landscape. Immediate support is pegged at 6500-6400. While, upside resistance is stood at 7800-8000.

Weekly KLSE: Holding ground

Market was holding ground and likely to continue its sideways move in near term. As for now, resistance is at 867-873. While, downside support is stood at 838-835.

Weekly FKLI: Stuck at sideways

Sideways move likely to extend in near term as nothing much changes on the technical outlook. We put the resistance and support at 875-880 and 833-835 level respectively.

Weekly FCPO: Eyeing 2000-2058

Market gaining ground following prices close at weekly high. Market looks had found base around 1828-1840 and may continue to move sideways to higher in near term. Upside resistance is stood at 2000-2058.