FKLI Weekly: Toppish

Market continue to hold ground in toppish manner. Thus, a healthy correction may take place in any time. To the upside, resistance is looking at 1189.5 followed by 1200. To the downside, support is pegged at 1150.

CBOT Weekly Soyoil: in Mix view

Market ended with a long upper shadow had slowing down the upward move. Overall weekly technical landscape was in mix view. Thus, market may move sideways in near term. Therefore, we continue to look for the upside resistance at 39.00 to 40.00. Downside support is pegged at 35.30 followed by 33.20.

NYMEX Crude Weekly: Limited upside gains

Overall weekly technical landscape has been weakening following market failed to break through the tough resistance at 73.38 and chart in potential of triple top formation. Hence, market may move sideways to bias downside potential in near term with downside support is pegged at 62.70.

FCPO Weekly: Mantain in positive tone

Market tested 2500 mark but shy away. However, the overall immediate weekly landscape is improving and bull is trying to build up a concrete base for a stronger and long lasting the upward momentum. We maintain our positive view towards the near term market. To the upside, resistance is adjusted to 2650-2675 followed by 2799. Downside support is pegged at 2350 followed by 2250-2225.

Trader's Comment: Palm oil futures ended sharply lower after a volatile trading day.

Palm oil futures ended sharply lower after a volatile trading day. Benchmark Oct09 began to fall lower through out the morning session after opened RM33 lower at 2482, following the sharp losses in overnight CBOT soy oil. It hit intra day low of 2424 before morning closed at 2431. The emerged of some aggressive buyers led palm oil futures to gap up higher during second session opening and continue to surge strongly until it hit intra day high at 2510. Nevertheless, it encountered strong resistance at above 2500 level as prices then started to fall again until it finally settled RM74 lower at 2441. External markets were mix as eCBOT soy oil inched higher after recovering from its earlier losses while Dalian palm ended with more than 2% losses.

Breaking News-RTRS-Malaysian palm stocks may hit 4-month low -minister

KUALA LUMPUR, Aug 14 (Reuters) - Malaysian palm oil stocks are likely to stay flat at 1.35 million tonnes in August, hitting a four-month low, as demand rises and output falters on drier weather brought by El Nino, a minister said on Friday.
Commodities Minister Bernard Dompok was cited by state news agency Bernama as saying low stocks in the second largest palm oil producer in the world would further boost benchmark Malaysian prices , which are up 43 percent so far this year.

Breaking News-RTRS-U.S. soy processors seen extending downtime

CHICAGO, Aug 13 (Reuters) - Some U.S. soy processors are expected to take additional seasonal maintenance downtime in the coming weeks due to a lack of old-crop soybean supplies and the high cost for what's left, soy dealers said on Thursday.
"The way the supply of beans is, they don't have a choice -- buy the beans you can crush between now and new-crop (harvest), and just shut it down," a soy dealer in Kansas City said. "They're sweeping the bottom of the bins out here."
At least six soy processors are taking downtime in August, in some cases shutting down for the entire month. Other processors scheduled seasonal maintenance last month.

Breaking News-RTRS-NOPA July US soybean crush pegged at 130.4 mln bu

CHICAGO, Aug 13 (Reuters) - National Oilseed Processors Association monthly crush data to be issued Friday morning should show a July U.S. soybean crush near 130.4 million bushels, analysts said Thursday.
Trade estimates ranged from 123.5 million to 136 million bushels, compared with NOPA's June soy crush figure of 133.1 million bushels.
Analysts expected NOPA to cut its soyoil stocks figure by about 100 million lbs from its June stocks figure of 2.907 billion lbs.

Breaking News-RTRS-India's oilseed sowing drops, sugarcane static

NEW DELHI, Aug 13 (Reuters) - India's oilseeds sowing from June 1 to Aug 13 was 15.2 million hectares, down from 16.4 million hectares a year ago because of erratic monsoon rains, government data showed on Thursday.
Soybean planting was higher but groundnut sowing fell, the government said in a statement.

Trader's Highlight

DJI-NEW YORK, Aug 13 (Reuters) - U.S. stocks rose on Thursday as better-than-expected earnings by Wal-Mart Stores Inc helped offset disappointing government numbers on retail sales and jobs.

Shares of Wal-Mart, the world's largest retailer, gained 2.7 percent to $51.88 following its second-quarter earnings and its outlook for the full year.

The Dow Jones industrial average <.DJI> rose 36.58 points, or 0.39 percent, to 9,398.19. The Standard & Poor's 500 Index <.SPX> gained 6.92 points, or 0.69 percent, to 1,012.73. The Nasdaq Composite Index <.IXIC> added 10.63 points, or 0.53
percent, to 2,009.35.

NYMEX-NEW YORK, Aug 13 (Reuters) - U.S. crude oil futures ended higher but well below the session peaks, tracking Wall Street, where major indexes sagged late as the day's economic data raised investor concerns about the pace of recovery.

Crude futures were up earlier on Wall Street's gains and on news of a surprise return to economic growth in Germany and France.

On the New York Mercantile Exchange, September crude settled up 36 cents, or 0.51 percent, at $70.52 a barrel, trading from $70.05 to $72.21.

CBOT-SOYBEANS - August down 28-3/4 cents at $11.87-1/4 a bushel; new-crop November down 25-1/4 cents at $10.18-3/4.

Fell 2 percent on profit-taking, good U.S. crop weather and unwinding of soy/corn spreads. Rallied to six-week high in early dealings, then plunged as August contract volatile ahead of expiration on Friday.

Demand for nearby soy stays hot, with exporter paying top premiums to meet commitments while processor margins slip.

NOPA July US soybean crush to be released on Friday and analyst average estimate is for 130.4 million bushels, compared with NOPA June soy crush 133.1 million.

CBOT-SOYOIL - August down 0.93 cent at 37.54 cents per lb. Big supply of soyoil weighs.

FCPO-JAKARTA, Aug 13 (Reuters) - Malaysian palm oil futures rebounded more than 2 percent on Thursday as investors covered short positions on expectations of lower production this month and a recovery in crude oil, traders said.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange ended up 55 ringgit, or 2.24 percent at 2,515 ringgit ($716.52) a tonne after going as high as 2,521 ringgit. Overall volume was 20,657 lots of 25 tonnes each, more than double the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Aug 13 (Reuters) - Singapore's stock market climbed
to its highest in a week on Thursday as earnings optimism pushed big caps such as City Developments higher, and other Southeast Asian bourses surged, palm plantation stocks leading the way.

Singapore's Straits Times Index <.FTSTI> ended up 1.7 percent at 2,614.18, with City Developments , Southeast Asia's number-two developer, pushed up 1.9 percent by its positive outlook despite a 15 percent fall in quarterly profit.

Shares in Wilmar International surged 7 percent following a jump in palm oil prices this week. Golden Agri-Resources added 7.4 percent and Indofood Agri-Resources 5.6 percent.

Even so, Malaysia's IOI Corp rose 1.6 percent, Thailand's United Palm Oil gained 4 percent and Indonesia's Astra Agro Lestari rose 2.5 percent.

Malaysia's index <.KLSE> was up 0.5 percent, Thailand's <.SETI> gained nearly 2 percent to its highest since last September, Indonesia's index <.JKSE> rose 2.1 percent, the Philippine index <.PSI> rose 1 percent and Vietnam's <.VNI> 1.3 percent.

FKLI Daily: Stuck in sideways

Nothing much excitement from the immediate daily technical landscape as price remains in tight rangy mode. Thus, we continue to look for the upside resistance at 1189.5. To the downside, support is pegged at 1170 followed by 1158.5.

NYMEX Crude Daily: Holding

Market is holding ground to survive at above 70. Thus, market may continue to move in sideways manner in the range of 72.84 to 73.38 and 68.84 to 68.71.

CBOT Soyoil Daily:May enter to a correction zone

Market reversed to end lower with a black candle printed had slowing down the upward move. Thus, market may enter into a correction zone in near term. As for now, we are looking for the upside resistance at 39.00 to 39.20. Downside support is stood at 37.40-37.20 followed by 36.50-36.25

FCPO Daily: Tested 2500 mark

Bulls shy away to close off the high at 2500 mark had beautified the overall daily technical landscape. We may see more upside potential if market manage to breakout from the immediate resistance at 2525-2530. The next resistance will be looking at 2585-2600. Currently, downside support is pegged at 2410-2380.

Trader's Comment: Palm oil futures rallied broadly higher to hit new recent high at above 2500 level on the back of external factors.

Palm oil futures rallied broadly higher to hit new recent high at above 2500 level on the back of external factors. Initially, Benchmark Oct09 hit the morning high at 2487 after opened RM7 higher at 2467 but immediately met some resistance from some profit takers, it then came down and hovered between 2468-2446 through out the morning session. However, as Asian time NYMEX crude oil continue to surge to more than 2% higher, this caused local BMD to follow suit. Benchmark Oct09 began to rally strongly higher in the second session until broke the psychological resistance level of 2500. It hit intra day high of 2521 before ended RM55 higher at 2515. Daily volume was also high with a total of 20,657 contracts changed hands.

Breaking News-RTRS-UPDATE 3-Big U.S. soy, corn crops may deflate price boom

WASHINGTON, Aug 12 (Reuters) - U.S. farmers will reap their largest soybean crop ever and the second-largest corn crop this year, mammoth harvests that will deflate an ethanol-fueled price boom, the government said on Wednesday.
Along with wheat, corn and soybeans are the foundation of the U.S. food supply. They are mixed into livestock rations, milled and crushed to become food and beverage ingredients, and employed as lubricants and feedstocks for motor fuels.
In its first estimate of the fall harvest, the Agriculture Department estimated the soybean crop would be a record 3.199 billion bushels, up 8 percent from 2008, and corn would total 12.761 billion bushels, up 5 percent from 2008 and the second-largest on record.
Bumper crops and lower grain prices will help constrain food prices, said a USDA forecaster. Prices are forecast to rise by a modest 3 percent this year and 3.5 percent in 2010, compared to a 5.5 percent increase -- largest since 1990 -- in 2008, when grain and oil prices set record highs.

Trader's Highlight

DJI-NEW YORK, Aug 12 (Reuters) - U.S. stocks powered higher on Wednesday as the Federal Reserve said it saw signs of a more stable economy.

The Federal Reserve said the economy was leveling out, and it left interest rates unchanged at the end of its two-day policy meeting.

The Fed also said it will extend the duration but not the size of a program to buy long-term government debt, which is part of its effort to revive credit and stimulate the economy.

The Dow Jones industrial average <.DJI> gained 120.16 points, or 1.30 percent, to close at 9,361.61. The Standard & Poor's 500 Index <.SPX> rose 11.46 points, or 1.15 percent, to 1,005.81. The Nasdaq Composite Index <.IXIC> added 28.99 points, or 1.47 percent, to 1,998.72.

The S&P is up 48.7 percent from its more than 12-year closing low set on March 9.

NYMEX-NEW YORK, Aug 12 (Reuters) - U.S. crude oil futures ended higher for the first time in four sessions on Wednesday, although Wall Street pared gains after the Federal Reserve kept the benchmark interest rates unchanged and extended Treasury
debt purchases.

On the New York Mercantile Exchange, September crude settled up 71 cents, or 1.02 percent, at $70.16 a barrel, trading from $68.84 to $71.13.

The EIA said that domestic crude stocks rose 2.5 million barrels last week to 352 million barrels, above the forecast for a 700,000 barrel rise in a Reuters poll.

CBOT-SOYBEANS - August down 1/2 cent to $12.16. a bushel. New-crop November up 5-1/2 at $10.44.

Fund buying in deferred months lifted market and thinly traded August weak amid posting of 10 deliveries overnight Tuesday. Market weighed down in early dealings as traders locked in profits after big rally on Tuesday despite USDA crop data that forecast smaller-than-expected soy production and acreage numbers.

USDA pegs 2009 U.S. soybean production 3.199 billion bushels, down from average estimate for 3.225 billion. Soy acreage 77.7 million, up from July estimate by USDA for 77.5 million.

CBOT-SOYOIL - August up 0.45 cent per lb at 38.47. Market support from gains in crude oil.

FCPO-JAKARTA, Aug 12 (Reuters) - Malaysian palm oil futures edged lower on Wednesday as investors locked in gains from a three-day rally in absence of fresh leads, traders said.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange was down 5 ringgit, or 0.2 percent at 2,460 ringgit ($697.28) a tonne. The contract hit the day's high of 2,490 ringgit and a low of 2,410 ringgit. Overall volume was 17,914 lots of 25 tonnes each, bigger than the usual 10,000 lots.

REGIONAL EQUITIES-JAKARTA, Aug 12 (Reuters) - Southeast Asian markets ended mostly lower on Wednesday, led by Jakarta, as investors locked in gains from a recent rally and on caution ahead of assessments from the Federal Reserves on prospects for the U.S. economy.

Singapore <.FTSI> slipped 1 percent, weighed down by a 2.32 percent fall in DBS Group and a 1.55 percent loss in Singapore Telecommunications .

In Kuala Lumpur, the index <.KLSE> eased 0.48 percent. Among the losers, are KNM Group , which dropped 5.36 percent and Maybank with a 3.25 percent fall.

FKLI Daily: in Consolidation phase

Market tested the immediate support level at 1175.5 but manage to defend. Hence, market may enter into consolidation phase in near term with uside resistance maintain at 1189.5 followed by 1200. While, downside support is pegged at 1170 followed by 1158.5.

FCPO Daily: Maintain in positive posture

Market still maintain its positive posture despite a negative closing. Thus, we continue to look for the upside resistance at 2500-2530. To the downside, support is remains at 2380 followed by 2354-2345 (gap left over on 10/8/2009).

Ttrader's Comment: Profit taking activities were evident after the recent strong rebound.

Profit taking activities were evident after the recent strong rebound. Benchmark Oct09 initially opened RM25 higher at 2490 but immediately attracted players to book their profit after the previous 2-day rally. Prices fell lower through out most of the sessions and tested intra day low of 2410 few times. Short-covering activities emerged in late trading led Benchmark Oct09 to bounce back strongly and ended RM5 lower at 2460. External markets were rather mix as eCBOT soy oil edged lower while Dalian palm ended higher today. Asian time crude oil clawed back its earlier losses and inched higher in late trading.