FCPO Weekly: Struggle around 2000 mark

Market struggles after few attempts failed to break through the recent high at 2058 (high since 1st July, 2009). However, we maintain our view sideways to higher in near term market. Upside resistance is stood at 2051-2058. While, downside support is pegged at 1900-1890.

Trader's Comment: CPO futures ended lower after a jumpy tight range trading.

CPO futures ended lower after a jumpy tight range trading. Initially it started with mixed to easier with Benchmark Jun09 opened RM5 lower at 2030 and drifted to 2007 and finish at 2010 for the morning break. Market tone were rather mix, hiher closed in overnight CBOT and NYMEX crude oil were offset by easier Asian time trading. Prices slid further in the afternoon session to hit 1990 following softer soy oil prices trading in eCBOT. It managed to bounce back to hit 2030 and then trading in a choppy manner between 2000-2020. Last split of second selling during the auction time sent Benchmark Jun09 to settle RM45 lower at 1990.

Trader's Highlight

DJI-NEW YORK, March 26 (Reuters) - U.S. stocks rallied for a second straight day on Thursday, taking the Nasdaq back into positive territory for the year-to-date, on increasing optimism that the economy's worst days are behind after the government
reported data that was less dire than expected.

The Dow Jones industrial average <.DJI> jumped 174.75 points, or 2.25 percent, to 7,924.56. The Standard & Poor's 500 Index <.SPX> spiked 18.98 points, or 2.33 percent, to 832.86. The Nasdaq Composite Index <.IXIC> surged 58.05 points, or 3.80
percent, to 1,587.00.

NYMEX-NEW YORK, March 26 (Reuters) - U.S. crude oil futures ended up nearly 3 percent on Thursday, spurred on by Wall Street, where investors bet that economic troubles may be abating.

On the New York Mercantile Exchange, May crude settled up $1.57, or 2.98 percent, at $54.34 a barrel, trading from $52.76 to $54.66, a new 2009 peak. It was also the highest settlement since Nov. 28, when prices closed at $54.43, with the day's high also the highest since that day.

CBOT-SOYBEANS - May down 7 cents at $9.44 a bushel.

Fears that China may release some soybeans it has been holding in reserve weighs on market in addition to optimism the Argentine farmer strike will end this weekend.

Census Bureau said U.S. February soy crush 135.60 million bushels, above average trade estimate for 134.9 million.

CBOT-SOYOIL - May up 0.23 cent at 33.60 cents a lb. Gains in crude oil supportive.

Census Bureau said U.S. February soyoil stocks 3.027 billion lbs., below average trade estimate for 3.036 billion.

FCPO-KUALA LUMPUR, March 26 (Reuters) - Malaysian crude palm oil futures climbed 3.19 percent on Thursday, snapping a two-day losing streak as investors re-entered the market on the back of higher crude oil prices and recovering shipments, traders said.

At the close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange rose 63 ringgit to 2,035 ringgit ($561.7) per tonne. Other traded months gained between 25 and 71 ringgit <#KPO:>. Overall volumes stood at 15,507 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, March 26 (Reuters) - Southeast Asian stocks were higher on Thursday as better U.S. economic data offered tentative signs that a recovery might be near, sending both Singapore and the Philippines to multi-week highs.

Regional shares followed Wall Street and other Asian bourses higher, but analysts remained cautious. Singapore's Straits Times Index <.FTSTI> led gainers, closing
up almost 4 percent.

In Kuala Lumpur, the index rose for a second day to close up 0.8 percent, lifted by a 6.8 percent gain in Resort World Bhd . Gamuda , the second-largest builder, ended up 4.1 percent after hitting a more than one-month high.

DJI Daily: still below 8000 mark.

Market was getting close to the upside resistance. However, it has to crack above 8000 mark in order to maintain the upside posture. Downside support is adjusted to 7500.

KLSE Daily: eye on 890.5-900 mark

Market maintained its sideways to higher posture. Resistance and support is at 890.5-900 and 870-868 level respectively.

FKLI Daily: likely to challenge 892-900 again!

Market just half point away from our target looks is likely to challenge again the upside resistance at 892-900 level. Downside support is pegged at 873-870.

FCPO Daily: Stayed firm at 2000 mark

Market looks firm at 2000 mark with prices close at day high. Thus, it may want to challenge upside resistance at 2051-2058 followed by 2100. While, downside support remained at 1955-1950 followed by 1900.

Trader's Comment: Palm oil futures recovered from yesterday’s losses to end generally higher on late covering.

Palm oil futures recovered from yesterday’s losses to end generally higher on late covering. Benchmark open RM24 higher at 1996, tracking the firm Dalian palm prices in the early trades coupled with the rebound of crude oil to above $53 level during Asian time trading after its overnight fall of more than $1. It eased off initially to intra day low of 1980 but bounced back again to close at 1998 level before lunch. The stable external vege oil market had also provided some support to the CPO market. eCBOT soy oil turned positive in late trading while Dalian palm ended higher. CPO prices traded in a tight range of 2010-1997 in the second session before some short covering activities emerged in late trading and pushed up Benchmark Jun09 to settle RM63 higher at 2035.

Breaking News-RTRS-Brazil soy exports strong on China demand - Abag

SAO PAULO, March 25 (Reuters) - Brazilian soybean exports remain at robust levels despite the international financial crisis, due to strong demand for imports of the oilseed from China, the world's largest importer of soy, the Brazilian Agribusiness Association Abag said Wednesday.

Trader's Highlight

DJI-NEW YORK, March 25 (Reuters) - U.S. stocks rose in a late rally on Wednesday as unexpectedly strong housing and durable goods data fueled hopes the economy is finally on the mend, offsetting concerns the United States may struggle to fund
plans to pull the economy out of recession.

The Dow Jones industrial average <.DJI> gained 89.84 points, or 1.17 percent, to 7,749.81. The Standard & Poor's 500 Index <.SPX> rose 7.76 points, or 0.96 percent, to 813.88. The Nasdaq Composite Index <.IXIC> added 12.43 points, or 0.82 percent, to 1,528.95.

NYMEX-NEW YORK, March 25 (Reuters) - U.S. crude oil futures ended more than 2 percent lower on Wednesday, weighed down by data showing domestic crude stocks rose to their highest level in more than 15 years.

On the New York Mercantile Exchange, May crude settled at $52.77 a barrel, down $1.21, or 2.24 percent, after trading from $51.86 to $54.18.

CBOT-SOYBEANS - May down 16 cents at $9.51 per bushel.

Profit-taking after rally early this week that was led by a farmers strike in Argentina. Lower crude oil also weighing on market.

U.S. Census Bureau to issue its February crush data on Thursday.

CBOT-SOYOIL - May up 0.10 cent at 33.37 cents per lb. Lower crude oil and soy weigh on soyoil in addition to profit-taking pressure.

FCPO-JAKARTA, March 25 (Reuters) - Malaysian crude palm oil futures closed lower on Wednesday for the second consecutive day on further profit taking, although news of better-than-expected exports capped losses, traders said.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange dropped 8 ringgit, or 0.4 percent, to 1,972 ringgit ($543) per tonne.

Other traded months were mixed <0#KPO:>. Overall volume was 11,164 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, March 25 (Reuters) - Southeast Asian stocks were mixed on Wednesday as doubts about the U.S. government's plan to rid banks of toxic debt emerged, dragging Singapore's stock market down from a 6-week high.

The Straits Times Index <.FTSTI> ended down 0.86 percent after a 2.5 percent gain on Tuesday.Malaysia's index <.KLSE>, the region's third best performer this year after Jakarta and Manila, ended with a 0.1 percent
rise.

Elsewhere in the region, Manila's stock index <.PSI> climbed 1.14 percent, and Vietnam <.VNI> edged up 2.6 percent, adding to Tuesday's 4 percent rise.

Trader's Comment: CPO futures ended marginally lower after a range trading

CPO futures ended marginally lower after a range trading. Benchmark Jun09 hovered between 1985-1955 level through out the day before it finally settled RM8 lower at 1972. Both private cargo surveyors released their own 1-25 Mar export data today, where ITS & SGS reported a decline of 9.2% and 5.6% respectively. Nevertheless, CPO prices did not react too much on these data as traders had been expecting a much lower figure since yesterday. Overall market was uncertain today. ECBOT soy oil and Dalian palm fell more than 1% in Asian time trading. On the other hand, there were news saying that Indonesia decided to keep its 0% palm oil export tax in Apr and raising the CPO base export price to USD515 per tonne from USD480 per tonne in Mar, while Indian government had issued a formal order to abolish 20% import tax on crude soy oil.

DJI Daily: Forming base

Market momentum strengthen further following 7800 mark tested at intra-day basis. Looks market is trying harder to form a more concrete base. We now looking for the upside resistance at 8000. Downside support is adjusted to 7300-7200.

KLSE Daily: Market is firming up

We maintain our view sideways to upside potential in near term market. Resistance and support is at 900 and 870-868 level respectively.

FKLI Daily: May challenge 892-900

Market maintained its upside move and looks may want to challenge upside resistance at 892-900 level. Downside support is pegged at 870-865.

FCPO Daily: Correction mode may continue

Market retreated in tight range manner. Correction mode looks may continue in near term. Upside resistance is stood at 2051-2058. While, downside support remained at 1950-1945 followed by 1900.

RTRS-India issues order to scrap crude soyoil import tax

NEW DELHI, March 25 - The Indian government has issued a formal order to abolish a 20 percent import tax on crude soyoil, a senior government official said on Wednesday.
"Orders have been issued and a notification on the official website should be uploaded anytime," the official at the Central Board of Excise and Customs said, confirming a report in the Hindu Business Line newspaper.
Trade Secretary G.K. Pillai said last week the government had cut the import duty on crude soyoil to keep domestic prices stable.
Imports of crude palm oil are not taxed, while that of refined vegetable oils attract a duty of 7.5 percent.

RTRS-Indonesia keeps April palm oil export tax at zero

JAKARTA, March 25 - Indonesia kept its zero percent palm oil export tax in April, while raising the crude palm oil base export price to $515 per tonne from $480 a tonne in March, a trade ministry official said on Wednesday.

Breaking News-RTRS-India must retain import tax on crude soyoil-trade

NEW DELHI, March 24 (Reuters) - Indian vegetable oil producers have urged the government to retain a 20 percent import tax on crude soyoil, saying a proposed cut would hurt farmers and was causing confusion in the market.

Breaking News-RTRS-U.S. soyoil sales to India may rise -Oil World

HAMBURG, March 24 (Reuters) - U.S. soyoil sales to India could rise following the Indian government's decision to cut soyoil import duties as rival exporters are tied up with biofuel production, Hamburg-based oilseeds analysts Oil World forecast on Tuesday

Breaking News-RTRS-U.S. farmers raise price targets as market rallies

CHICAGO, March 23 (Reuters) - U.S. farmers are raising their price targets to sell corn and soybeans in a sign of optimism amid a resurgent grain market fueled by sharp gains on Wall Street and farmer unrest in Argentina, a major competitor in the export market.
U.S. farmers are now setting their sights on selling soybeans for $10 per bushel and corn at $4.25, up from $9 and $4 last week, bolstered by corn hitting an eight-week high and soybeans touching a five-week top at the Chicago Board of Trade on Monday.