FKLI Daily: Holding ground

Market was holding ground after hit the fresh high at 1243. We maintain positive view towards the near term market with upside target is looking at 1250. So far, there is still no sign of turning weak unless market break down from the downside support at 1200 levels.

Breaking News-RTRS-UPDATE 1-China pledges to stockpile new corn, soybean crops

BEIJING, Oct 12 (Reuters) - China pledged on Monday to extend its controversial soybean and corn stockpiling scheme into the new crop year, moving to protect farmers' interests and ensure supply at the risk of inflating imports for a second year running.
The government did not say at what prices it will stockpile soybeans, but last year's scheme has been critised by traders as the purchases at higher-than-market prices led to a boom in cheap imports. The new crop harvest is due to begin within weeks.

Trader's Highlight

DJI-NEW YORK, Oct 12 (Reuters) - Oil and other commodity prices rose on Monday on renewed optimism over the pace of economic recovery and a weak U.S. dollar, which helped lift the benchmark S&P 500 Index to its highest close in a year.

The Dow Jones industrial average <.DJI> closed up 20.86 points, or 0.21 percent, at 9,885.80. The Standard & Poor's 500 Index <.SPX> added 4.70 points, or 0.44 percent, at 1,076.19. The Nasdaq Composite Index <.IXIC> slipped 0.14 points, or 0.01 percent, at 2,139.14.

NYMEX-NEW YORK, Oct 12 (Reuters) - U.S. crude oil futures ended at a seven-week high on Monday, rising for a third day in a row as a weak dollar attracted buyers. Cooler temperatures and optimism about an economic recovery
added support.

On the New York Mercantile Exchange, November crude closed up $1.50, or 2.09 percent, at $73.27 a barrel, the highest settlement since Aug. 24's $74.37. It traded from $72.05 to $73.84, the highest since the intraday high of $75 on Aug. 25, which was the year's high and highest since the intraday prices hit $75.69 on Oct. 21, 2008.

CBOT-SOYBEANS - November up 35 cents at $9.99 a bushel. Slow U.S. harvest this week due to rain and snow combined with a freeze over the weekend that likely harmed some of the immature U.S. crop lifted soybean futures. Added strength from lower dollar, higher crude oil and gains in equities. Nearby contract reaches $10.00-3/4, highest level since Sept. 3.

CBOT-SOYOIL - October up 1.39 cents at 36.30 cents per lb; December up 1.35 cents at 36.55. Spillover support from gains in soy, higher crude oil and a weak dollar.

FCPO-KUALA LUMPUR, Oct 12 (Reuters) - Malaysian palm oil futures jumped 3.2 percent to a two-week high on Monday as sentiment improved on strong export data and concern adverse weather could hit rival soyoil production. The benchmark December contract on the Bursa Malaysia Derivative Exchange rose as much as 67 ringgit to 2,152 ringgit ($631.6) a tonne, a level unseen since Sept. 25. The contract then settled up 62 ringgit at 2,147 ringgit. Trade volumes more than doubled to 21,479 lots of 25 tonnes each, signalling fresh buying.

REGIONAL EQUITIES-BANGKOK, Oct 12 (Reuters) - Singapore stocks climbed to their
highest in almost two weeks on Monday after surprisingly third quarter economic growth sprked buying in banking shares, the Thai index scaled a fresh 15-month high.

Singapore's benchmark Straits Times Index <.FTSTI> ended up 1.1 percent at its highest level since Sept. 30, with DBS Group , Southeast Asia's biggest lender, up 0.8 percent, after the central bank announced no change in its monetary policy stance and better-than-expected GDP growth in the third quarter. Singapore Exchange gained 0.8 percent ahead of its earnings release scheduled for Thursday.

Malaysia <.KLSE> inched down 0.04 percent, after a three-day rise, Indonesia <.JKSE> fell for a fourth day, sliding 0.7 percent while the Philippines <.PSI> lost 0.4 percent, adding on a 0.9 percent decrease on Friday.

In Kuala Lumpur, palm plantation firm IOI Corp was down 0.4 percent, erasing some early losses after Moody's Investors Service changed the outlook of IOI Corp to stable from negative.

FCPO Daily: May challenge 2180-2240 in near term

Market rebounded strongly after the recent consolidation mode. Market gap up and violated the 2100-2130 convincingly. Thus, market looks may want to challenge next resistance at 2180-2240 levels in near term. To the downside, support is pegged at 2118-2085 (gap left over on 12/10/2009)

CBOT Soyoil Daily: Sideways to bias upside potential

A sharp rebound to violate the overhead resistance at USD36 had strengthen further the market upside move. Market may continue to move sideways to bias upside potential in near term. Upside resistance is looking at USD37.50-38.00. Downside support is at USD34-33.00.

NYMEX Crude Daily: Bias to upside potential

A more clearer direction was seen after prices violated the resistance at USD73. Thus, market may want to challenge the next resistance at USD75 in near term. To the downside, support is pegged at USD68-67.

DJI Daily: Ends of Consolidation phase

Market comes to the end of its consolidation phase as prices manage to break out from the recent high at 9917 levels. We expect more room to bias upside potential in near term with upside target is looking at 10,000-10,300 levels. While, downside support is pegged at 9,600-9,400 levels.

FKLI Daily: Bulls run remains intact

Uptrend remains intact despite prices close off from the fresh high at 1243. Bulls may continue to challenge the next tough resistance at 1250 levels followed by 1260-1270. To the downside, support remains at 1200 levels.

Trader's Highlight

DJI - NEW YORK, Oct 9 - U.S. stocks climbed on Friday, with the Dow hitting a closing high for 2009, as investors anticipated positive news from next week's key earnings reports and bullish broker comments boosted tech shares.

U.S. stocks achieved their best weekly gains since July and snapped a two-week losing streak. The five-day rally pushed the Dow Jones industrial average up 4 percent for the week, while the Standard & Poor's 500 advanced 4.5 percent and the Nasdaq
gained 4.5 percent.

The Dow Jones industrial average ended up 78.07 points, or 0.80 percent, at 9,864.94. The Standard & Poor's 500 Index gained 6.01 points, or 0.56 percent, to 1,071.49. The Nasdaq Composite Index rose 15.35 points, or 0.72 percent, to 2,139.28.

NYMEX - On the New York Mercantile Exchange, November crude settled up 8 cents, or 0.11 percent, at $71.77 a barrel, trading from $70.62 to $72.24.

CBOT - SOYBEANS - CBOT November up 28 cents per bushel at $9.64.
Support from USDA's October crop report that showed a lower-than-expected 2009 U.S. soybean crop. Also, support from excessive wet weather including flooding and forecasts for a freeze by the weekend in the U.S. harvest region.

CBOT - SOYOIL - CBOT December up 0.63 cent per lb at 34.91 cents per lb. Spillover support from rallying soybeans.

FCPO - JAKARTA, Oct 9 - Malaysian crude palm oil futures closed up 2.7 percent on Friday, as investors rushed to cover short positions in late trade on speculation of higher exports for the first 10 days of the month, traders said.
The market has previously anticipated that cargo surveyors' reports due out Monday would show weaker exports this month, partly due to a long holiday in China, a top buyer of vegetable oils.
"We heard rumours that exports are at 339,195 tonnes, or 8.3 percent higher (from Sept. 1-10)," a trader at a Kuala Lumpur-based brokerage said.
Another Malayasian trader said the rumour of stronger exports was the only reason to buy.
The benchmark December contract on the Bursa Malaysia Derivative Exchange settled up 55 ringgit at 2,085 ringgit ($613.87) a tonne. Trade volumes were at 13,723 lots of 25 tonnes each.

REGIONAL EQUITIES - BANGKOK, Oct 9 - Southeast Asian stock markets were mixed on Friday, with Malaysia and Thailand seeing modest gains on buying in financials such as CIMB and Bangkok Bank, while Singapore inched up with Singapore Airlines leading the way.

Malaysia's index added 0.3 percent, with CIMB Group up 0.8 percent following an earnings upgrade by broker TA, while Thailand ended up 0.4 percent, led by a 1.5
percent gain in the biggest bank, Bangkok Bank.

Singapore's index gained 0.06 percent, with Singapore Airlines up 2.5 percent after Morgan Stanley upgraded its recommendation on the carrier to "overweight",
citing a possible global economic recovery in 2010 which would boost premium travel.

Trader's Highlight

DJI-NEW YORK, Oct 8 (Reuters) - U.S. stocks rose on Thursday as a surprising quarterly profit from Alcoa Inc got third-quarter earnings off to a strong start.

The Dow Jones industrial average <.DJI> rose 61.29 points, or 0.63 percent, to end at 9,786.87. The Standard & Poor's 500 Index <.SPX> gained 7.90 points, or 0.75 percent, to 1,065.48. The Nasdaq Composite Index <.IXIC> advanced 13.60 points, or
0.64 percent, at 2,123.93.

NYMEX-NEW YORK, Oct 8 (Reuters) - U.S. crude oil futures rebounded on Thursday, ending more than 3 percent higher, on economic recovery optimism as Wall Street surged and the dollar weakened.

On the New York Mercantile Exchange, November crude settled up $2.12, or 3.05 percent, at $71.69 a barrel, trading from $69.17 to $72.55.

CBOT-SOYBEANS - November up 24 cents at $9.36 a bushel. Plunging dollar, slow U.S. soy harvest, firm cash soy, concern about a freeze this weekend that could harm some of the immature U.S. soy crop and gains in crude lift soybeans. Traders also note unwinding of some corn/soy spreads.

An average of analysts' estimates for 2009 U.S. soy production was 3.281 billion bushels, up from the September forecast for 3.245 billion.

An average of analysts' estimates pegged 2009/10 U.S. soy ending stocks at 249 million bushels, up from the September forecast for 220 million.

CBOT-SOYOIL - October up 0.55 cent at 34.28 cents per lb; December up 0.53 cents at 34.57. Spillover support from gains in soy, higher crude oil and a weak dollar.

Trade awaits USDA October crop and supply/demand reports early Friday.

FCPO-JAKARTA, Oct 8 (Reuters) - Malaysia's crude palm oil futures dropped 2.3 percent to their weakest closing in 12 weeks on Thursday ahead of a slew of industry data that may show weak exports and higher production, traders said.

The benchmark December contract on the Bursa Malaysia Derivative Exchange settled down 47 ringgit at 2,030 ringgit ($599.09) a tonne, the lowest close since July 16. Trade volumes were at 15,066 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Oct 8 (Reuters) - Southeast Asian stock markets were
mostly higher on Thursday, as property heavyweight CapitaLand led Singapore to a one-week high and Malaysia hovered at two-week highs on financial-led buying.

Singapore's index <.FTSTI> gained 0.6 percent to its highest since Oct. 1, Malaysia's index <.KLSE> added 0.9 percent to its highest since Sept. 23, while Thailand's index <.SETI> closed up 0.3 percent at 15-month highs.

In Kuala Lumpur, financials advanced with CIMB Group rising 4.5 percent, Public Bank up 2.8 percent and Malayan Banking 0.6 percent higher. Top Glove climbed 2.3 percent after it posted a 126 percent increase in fourth quarter net profit.

FCPO Daily: Stil in bearish atmosphere

Market continue to stuck in bearish atmosphere as prices still hovering around 2000 to 2100 levels. Thus, we maintain the immediate downside support at 2000 followed by 1980-1960. To the upside, resistance remains at 2100-2130.

FKLI Daily: More Upside to come

Market violated the recent high at 1232 levels to close at fresh new high had proved to us bulls are ready to challenge the next tough resistance at 1250 levels followed by 1260-1270. To the downside, support remains at 1200 levels.

Breaking News-RTRS-POLL-Malaysia's Sept palm oil stocks at 7-month high

RTRS-MALAYSIA'S END-SEPT PALM OIL STOCKS SEEN UP 7.4 PCT FROM AUG AT 1.52 MLN TONNES - REUTERS POLL
RTRS-MALAYSIA'S SEPT PALM OIL OUTPUT SEEN UP 4.4 PCT FROM AUG - POLL
RTRS-MALAYSIA'S SEPT PALM OIL EXPORTS SEEN DOWN 2.0 PCT FROM AUG - POLL

Trader's Highlight

DJI-NEW YORK, Oct 7 (Reuters) - The Standard & Poor's 500 and Nasdaq indexes edged up on Wednesday with investors responding positively to early earnings results as the quarterly reporting period got under way.

The mild moves follow two days of strong gains for the market, helped by optimism about third-quarter profits. Expectations for the quarter have been high following the second quarter's strong showing, where more than 70 percent of companies beat Wall Street's consensus estimates.

The Dow Jones industrial average <.DJI> was down 5.67 points, or 0.06 percent, at 9,725.58. The Standard & Poor's 500 Index <.SPX> was up 2.86 points, or 0.27 percent, at 1,057.58. The Nasdaq Composite Index <.IXIC> was up 6.76 points, or 0.32 percent, at 2,110.33.

NYMEX-NEW YORK, Oct 7 (Reuters) - U.S. crude oil futures ended nearly 2 percent lower on Wednesday, weighed down by government data showing larger-than-expected supply increases in gasoline and distillate fuels last week.

Traders ignored data from the U.S. Energy Information Administration showing a surprise drawdown in crude stocks.

On the New York Mercantile Exchange, November crude settled down $1.31, or 1.85 percent, at $69.57 a barrel, trading from $68.88 to $71.76.

CBOT-SOYBEANS - November up 2 cents at $9.12 a bushel. Market ended firm but range-bound, caught between bearish outlook for a record U.S. soy harvest and support from a slow harvest given crop immaturity and rains. Weekend freeze headed to Midwest that may harm some crops.

CBOT-SOYOIL - October down 0.21 cent at 33.73 cents a lb; December down 0.22 at 34.04. Pressured by falling crude oil market amid EIA data showing larger-than-expected increases in refined product stocks.

FCPO-JAKARTA, Oct 7 (Reuters) - Malaysia's crude palm oil futures edged higher on Wednesday but shed some of the day's gain on late selling because of worries over poor fundamentals including weak exports and higher production, traders said.

The benchmark December contract on the Bursa Malaysia Derivative Exchange settled up 15 ringgit, or 0.7 percent, at 2,077 ringgit ($608.20) a tonne, after going as high as 2,100 ringgit. Trade volumes were at 12,322 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Oct 7 (Reuters) - Southeast Asian stock markets
extended recent gains on Wednesday, with Singapore nearing a one-week high and Malaysia climbing to its highest in almost two weeks on buying interest in financials and commodity shares.

Singapore's index <.FTSTI> climbed to its highest since Oct. 1 and ended up almost 1 percent, with developer CapitaLand up 1.3 percent, lender DBS Group adding 0.8 percent and Genting Singapore adding 3.8 percent.

Palm plantation stocks were in the spotlight after gains in Malaysia's crude palm oil future.

In Singapore, Wilmar International gained 1 percent and Golden Agri rose 2.3 percent. In Kuala Lumpur, Kuala Lumpur Kepong rose 1.3 percent and IOI Corp rose 1.4 percent.

Malaysia's index <.KLSE> hit its highest since Sept. 24, Thailand's index <.SETI> gained 1.4 percent while indices in the Philippines <.PSI> and Vietnam <.VNI> each gained more than 2 percent.

USD/MYR Daily: More room to bias downside potential

MYR chart is likely to continue its downtrend move following prices violated the underline support at 3.4500. Thus, more room to bias downside potential in near term market. As for now, we are looking for the downside support at 3.3880-3.3870 followed by 3.3670. While, immediate upside resistance is pegged at 3.4440-3.4500.

FCPO Daily: Maintain in bearish territory

Market close off the day low after failed to break through 2100 resistance levels. Hence, the overall technical landscape remains weak. We maintain our bearish view in near term with immediate downside support remains at 2000 followed by 1980-1960. To the upside, resistance is pegged at 2100-2130.

KLSE Daily: Upward move likely to extend

Consolidation phase looks is likely to extend with bias to upside move. Hence, market may want to challenge its upside target at 1231.49. While downside support is pegged at 1200 levels.

Trader's Comemnt: Palm oil futures recovered from its earlier losses to edge higher on strong external markets.

Palm oil futures recovered from its earlier losses to edge higher on strong external markets. Initially, market sentiment was weak in the morning session as Benchmark Dec09 fell to intra day low of 2013 after opened RM4 higher at 2046. However, as Asian time NYMEX crude oil and eCBOT soy oil began to improve in second session saw CPO prices followed suit. Benchmark Dec09 started to climb steadily on some bargain hunting covering activities. Prices surged further in late trading as no sign of easing off and supported well. This prompted aggressive intra day short covering and push prices to settle RM20 higher at 2062 after hitting intra day high at 2068. The positive external markets had lent strong support to BMD. Both crude oil and soy oil were seen to trade 1% higher during late Asian time trading. Daily volume was more than doubled the usual level with a total of 26,782 contracts traded in the market.

Trader's Highlight

DJI-NEW YORK, Oct 6 (Reuters) - U.S. stocks rose on Tuesday amid signs the global economy was recovering and optimism that corporate earnings reports will beat expectations.

Australia became the first G20 country to raise interest rates since the onset of the financial crisis, saying that the worst danger for the economy had passed, which underscored for many that the global economy was on the mend.

The Dow Jones industrial average <.DJI> was up 131.50 points, or 1.37 percent, at 9,731.25. The Standard & Poor's 500 Index <.SPX> was up 14.26 points, or 1.37 percent, at 1,054.72. The Nasdaq Composite Index <.IXIC> was up 35.42 points, or 1.71 percent, at 2,103.57.

NYMEX-NEW YORK, Oct 6 (Reuters) - U.S. crude oil futures rose slightly in post-settlement trading on Tuesday after industry data showed a surprise, if small, drawdown in crude stocks last week.

The U.S. Energy Information Administration will follow with its own report on Wednesday at 10:30 a.m. EDT.

A British newspaper report that Gulf Arab states were in secret talks to abandon the U.S. currency in oil trade added pressure to the dollar. But top officials of Saudi Arabia and Russia, speaking on the sidelines of International Monetary Fund meetings in Istanbul, denied there were such talks.

On the New York Mercantile Exchange, at 5 p.m. EDT (2100 GMT) November crude was up 79 cents, or 1.12 percent, at $71.20 a barrel. It had settled up 47 cents, or 0.67 percent, at $70.88, trading from $70.06 to $71.97.

CBOT-SOYBEANS - November up 25 cents at $9.10 a bushel. Broke above $9 on concerns of U.S. harvest delays, crop immaturity, following the strength in corn. Rally in crude and falling dollar also support.

CBOT-SOYOIL - October up 0.41 cent at 33.94 cents; December up 0.41 cent at 34.26. Spillover support from gains in soy and crude oil.

FCPO-JAKARTA, Oct 6 (Reuters) - Malaysia's crude palm oil futures rose 1 percent on Tuesday, climbing from a 12-week low hit in early trade, supported by stronger crude oil and soybean prices, traders said.

The benchmark December contract on the Bursa Malaysia Derivative Exchange settled up 20 ringgit, or 1.0 percent, to 2,062 ringgit ($600.55) a tonne, after going as low as 2,013 ringgit, a level not seen since July 13. Trade volumes were at 26,787 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Oct 6 (Reuters) - Singapore shares rose 1 percent on
Tuesday as CapitaLand hit a three-week high following its shopping mall arm listing plan while Indonesia surged to near 19 month highs, with Astra International jumping after an upgrade.

Thailand <.SETI> ended up 1.8 percent, the Philippines <.PSI> gained 2.3 percent and Vietnam <.VNI> rose 0.6 percent. But Malaysia <.KLSE>, which traded in negative territory throughout the session, ended off 0.3 percent.

FCPO Daily: still weak

Prices rebounded to end off the high after hit the fresh low at 2013. Market momentum remains weak despite prices trying hard to defend at 2000 levels. Thus, we continue to look for the immediate downside support at 2000 followed by 1980-1960. To the upside, resistance is pegged at 2100-2130.