Trader's Comment: Palm oil futures surrendered its earlier gains on weaker export figures.

Palm oil futures surrendered its earlier gains on weaker export figures. Benchmark May09 fell to 1971 after it opened almost unchanged, following the release of export data last Saturday by private cargo surveyor, ITS which reported a decline of nearly 12%. Initially it was still well supported as it rebounded again to a new recent high at 2017 before trading on BMD halted by midday on technical problem. Nevertheless, market sentiment in the afternoon session immediately changed when another private cargo surveyor SGS released its export data which also reported a lower by 13%. Benchmark May09 was unable to hold and immediately fell to the low of 1932. It then bounced back to hover between 1948-1968, before another wave of late selling activity emerged which hammered the prices down to 1920 and settled RM72 lower at 1922. There was no trading in eCBOT today as US markets are closed on Monday for the President’s Day.

Breaking News-RTRS-UPDATE 1-Argentine farm groups say postpone strike

BUENOS AIRES, Feb 12 (Reuters) - Argentine farms groups said on Thursday they postponed a planned strike against government agricultural policies and appealed to President Cristina Fernandez to hold talks aimed at ending the standoff.

Trader's Highlight

DJI-NEW YORK, Feb 13 (Reuters) - Hopes for the implementation of government stimulus packages rekindled some global appetite for risk on Friday, encouraging investors to move out of safe-haven government bonds and gold, although Wall Street slipped on renewed banking sector fears.

The Dow Jones industrial average <.DJI> finished down 82.35 points, or 1.04 percent, at 7,850.41, while the Standard & Poor's 500 Index <.SPX> lost 8.35 points, or 1.0 percent, at 826.84. The Nasdaq Composite Index <.IXIC> declined 7.35 points, or 0.48 percent, at 1,534.36.

NYMEX-NEW YORK, Feb 13 (Reuters) - U.S. crude oil futures ended up more than 10 percent on Friday, on hopes that passage of a U.S. economic stimulus package expected to be completed later in the day will help halt an oil demand slowdown.

On the New York Mercantile Exchange, March crude settled up $3.53, or 10.39 percent, at $37.51 a barrel, trading from $33.81 to $38.25. For the week, the contract was down $2.66, or 6.62 percent.

NYMEX April crude ended at $41.97, down 20 cents, or 0.47 percent, its premium over March crude shrinking to $4.46, from $8.19 at the close on Thursday.

NYMEX will be closed on Monday for the U.S. Presidents Day holiday and will reopen on Tuesday. Electronic trading on CME Globex and NYMEX Clearport are unaffected and will run on the
normal schedule.

CBOT-SOYBEANS - March down 13 cents to $9.55-1/2 a bushel.

Turned lower as rain forecast for Argentine triggering sales. Also bearish was Argentine farmers postponing strike against the government -- a move that could have impacted exports.

National Oilseed Processors Association to issue January crush data on Tuesday.

CBOT-SOYOIL - March up 0.17 cent to 33.00 cents a lb. Firm, gaining on soymeal after palm oil rallies.

FCPO-KUALA LUMPUR, Feb 13 (Reuters) - Malaysian crude palm futures jumped as much as 3.7 percent to hit 5-week highs on Friday as investors took positions on fears drought conditions may worsen in rival soyoil-producing Argentina.

Benchmark April contract settled up 67 ringgit at 1,995 ringgit ($552.3) per tonne, after going as high as 2,000 ringgit, a level unseen since Jan. 7.

Other traded contracts gained between 25 and 130 ringgit <0#KPO:>. Overall volume shot up to 15,176 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Feb 13 (Reuters) - Most Southeast Asian stock
markets turned higher on Friday, led by financials and property shares such as UOB and Capitaland, with the Thai market also helped by demand for energy blue chips.

Singapore's Straits Times Index <.FTSTI> rose 1.2 percent, Indonesia <.JKSE> climbed about 1 percent, Thailand <.SETI> added 1.2 percent and Malaysia <.KLSE>, the best performer in the region so far this year, was up 1.7 percent.

DJI Weekly: Tight range trading likely to continue

Market likely to continue its range trading in near term. We are now looking for the resistance and support at 8300-8400 and 7449 level respectively.

KLSE Weekly: Sideways to bias upside potential

Market violated the 900 mark and stayed firm. Looks market may continue to move sideways to bias upside potential with upside resistance is now looking at 920-925 followed by 936. Downside support is pegged at 874-868.

FKLI Weekly: 900 mark manage to hold?

Market tried hard to sustain above the 900 mark. Immediate technical outlook looks little improving following another week of good closing. However, market need to gather more effort in order to continue survive above 900 mark. For now, we look at the resistance at 925-927 followed by 937. while, downside support is at 875-870.

FCPO Weekly: Holding firm with bias upside potential

Market tested the 2000 mark after violated the resistance at 1998 had strengthened further the technical landscape. Market looks may want to continue challenge the upside target at 2058 in near term. For downside, support is pegged at 1740-1720.

Trader's Comment: The return of BULL

The “bull” fiercely returned again as it touched 2000 level amid previous short sellers aggressively covered their position after got caught on squeeze. Benchmark Apr09 opened RM9 higher at 1937 and rallied all the way up through out the day, tracking the improving external factors as eCBOT soy oil and Dalian palm rose steadily after bouncing back from their overnight losses. The plan to protest by Argentine farmers and coupled with some weather concern had also prompted traders to speculate on the CPO prices. Technical buying also helped to push the market after 1900 level was defended well during the last couple of trading days. Benchmark Apr09 hit the intra day high at 2000 before it finally settled RM67 higher at 1995.

Breaking News-RTRS-Argentine farm groups to meet, map out protests

BUENOS AIRES, Feb 12 (Reuters) - Argentine farmers, locked in a long-running dispute with the government over farm policies, will meet Thursday to finalize plans for fresh protests that are not expected to affect soy exports.

Trader's Highlight

DJI-NEW YORK, Feb 12 (Reuters) - U.S. stocks staged a late rally to close mostly higher on Thursday after Reuters reported the Obama administration was working on a program to subsidize mortgage payments for troubled homeowners.

The S&P 500 and Nasdaq ended higher while the Dow industrials retraced losses to close slightly lower as investors starved for good news bet the government had taken a big step toward stabilizing the housing market.

The Dow Jones industrial average <.DJI> shed 6.77 points, or 0.09 percent, to end at 7,932.76. The Standard & Poor's 500 Index <.SPX> added 1.45 points, or 0.17 percent, to 835.19. The Nasdaq Composite Index <.IXIC> rose 11.21 points, or 0.73 percent, to 1,541.71.

NYMEX-NEW YORK, Feb 12 (Reuters) - U.S. crude oil futures fell for the fifth straight session on Thursday, sliding to the lowest settlement in nearly two months as oil demand worries persisted a day after government data showed U.S. crude
supplies rose sharply last week.

On the New York Mercantile Exchange, March crude settled down $1.96, or 5.45 percent, at $33.98 a barrel, the lowest settlement since Dec. 19's $33.87. It traded from $33.55 -- a new contract low and lowest since Jan. 20's $32.70 -- to $36.25.

CBOT-SOYBEANS - March down 9-1/2 cents at $9.68-1/2 a bushel.

Improved crop weather this week in Argentina, firm dollar, lower crude oil and falling stock market adds pressure with market underpinned by big U.S. soy exports.

USDA baseline report pegged 2009 soy acres 74.0 million, down from 75.7 million last year. Soy production for 2009 forecast 3.110 billion bushels, up from 2.959 billion.

Drier and hotter weather expected to increase stress on Argentine crops over the next 5-7 days especially in areas that did not receive rainfall this week.

CBOT-SOYOIL - March down 0.35 cent at 32.83 cents a pound. Falling crude oil weighs on soyoil prices.

FCPO-KUALA LUMPUR, Feb 12 (Reuters) - Malaysian crude palm futures were mostly little changed on Thursday as fears of weakening demand in coming weeks pared earlier gains from falling domestic inventories.

Benchmark April contract on Bursa Malaysia Derivatives Exchange settled up 3 Malaysian ringgit to 1,928 Malaysian ringgit ($534.2) after going as high as 1,945 ringgit.

Other traded contracts mostly fell marginally, although the Sept. contract edged higher <0#KPO:>. Overall volume stood at 10,276 lots of 25 tonnes.

REGIONAL EQUITIES-BANGKOK, Feb 12 (Reuters) - Most Southeast Asian stock markets fell on Thursday as investors offloaded financials such as Singapore's United Overseas Bank and Malaysia's Bumiputra as the latest U.S. moves to tackle the financial crisis left investors cold.

Singapore led the regional losses, with the Straits Times Index <.FTSTI> closing down 2.15 percent, erasing recent gains.

Malaysian shares <.KLSE> also fell for a second day, down 0.3 percent, with Sime Darby Bhd losing 1.7 percent.

FCPO Daily: 1900 mark defended

1900 mark continue to provide support and looks market may extend its tight range trading again. We are now looking the upside resistance at 1967-1969 followed by 1981-1998. Downside support is pegged at 1900-1880 followed by 1860-1850.

Trader's Comment: Palm oil futures ended mix to easier on a range trading day.

Palm oil futures ended mix to easier on a range trading day. Benchmark Apr09 had been hovering between day high 1945 and day low 1907 through out the day, before it finally settled RM3 higher at 1928. Fourth contract month (May09) settled RM5 lower at 1915 after trading within 1935 to 1900. Market sentiment was mix as eCBOT soy complex edged higher in the earlier trade but surrendered its gains again in the last hour of trading, while Dalian palm extended its yesterday’s losses. Trading was rather quiet with overall volume declined to only 10,276 contracts changed hands as traders were cautiously waiting for any fresh leads. Market may want to consolidate after the recent rally. The fall of overnight NYMEX crude oil and CBOT soy oil had resulted in Benchmark Apr09 to open RM10 lower at 1915.

Trader's Highlight

DJI-NEW YORK, Feb 11 (Reuters) - U.S. stocks rose in a choppy session on Wednesday after lawmakers reached a compromise deal on a $789 billion stimulus package that is seen as crucial to reviving the recession-hit economy.

Stocks had see-sawed during the day, hurt by falling crude oil prices and declines in technology shares before finally holding gains on the stimulus package.

The Dow Jones industrial average <.DJI> gained 50.65 points, or 0.64 percent, to 7,939.53. The Standard & Poor's 500 Index <.SPX> climbed 6.58 points, or 0.80 percent, to 833.74. The Nasdaq Composite Index <.IXIC> added 5.77 points, or 0.38
percent, to 1,530.50. 04:28 12Feb09 RTRS-NYMEX-Crude ends lower on big build, demand view

NYMEX-NEW YORK, Feb 11 (Reuters) - U.S. crude oil futures tumbled more than 4 percent on Wednesday, weighed down by a large increase in domestic crude stocks last week and a gloomy oil demand forecast from the International Energy Agency.

On the New York Mercantile Exchange, March crude settled down $1.61, or 4.29 percent, at $35.94 a barrel, trading from $35.65, a new contract low, to $38.47. The day's low was the lowest since prices hit $32.70 on Jan. 20.

CBOT-SOYBEANS - March down 16 cents to $9.78 a bushel.

Better-than-expected rains in drought-stricken Argentina at mid-week weighed on soybean futures.

Argentine soy production may be higher than expected due to recent rainfall.

CBOT-SOYOIL - March down 0.46 cent at 33.18 cents a pound. Following soy with late drop in crude oil also pressuring.

FCPO-KUALA LUMPUR, Feb 11 (Reuters) - Malaysian crude palm futures fell 2.2 percent on Wednesday, easing off one-month highs, as investors booked profits on the previous day's rally with inventory data meeting trade expectations.

The benchmark April contract settled down 44 ringgit at 1,925 ringgit ($533.8), easing from 1,969 ringgit notched the day before, a level unseen since Jan. 12.

Other traded contracts fell between 6 and 44 ringgit while the Sep 2009 contract was unchanged <0#KPO:>. Overall volume was 17,768 lots of 25 tonnes each compared with the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Feb 11 (Reuters)-Asian stocks were pulled down by financials and energy shares, with scepticism rife about the new plan from Washington. Analysts said regional equities would take their direction from
developments in the Chinese economy and U.S. stock markets.

Elsewhere, the Malaysian index <.KLSE> lost 0.7 percent, with Malayan Banking down 2.2 percent and lender CIMB down 1.8 percent.

DJI Daily: No improvement

Nothing much changes on the immediate technical landscape. We maintain the resistance and support at 8300-8400 and 7449 level respectively.

KLSE Daily: Moving sideways to bias upside potential

Market maintains its sideways to bias little upside potential. We continue to look for upside resistance at 905 followed by 907-910 (gap left over since 15/1/2009). Downside support is at 884-880 (gap left over on 6/2/2009)

FKLI Daily: Firm & Steady

Market remains steady and firm despite a negative close. We continue to looks for the upside at 901 followed by gap left over at 902.5-907. Support is maintain at 880-878 (gap left over on 6/2/2009).

FCPO Daily: Retreated

Market retreated after the recent rally yet 1900 mark was defended. We maintain the upside resistance at 1981-1998 followed by 2058. Downside support is pegged at 1880-1900 followed by 1850-1860.

Trader's Comment: CPO futures ended lower on profit taking.

CPO futures ended lower on profit taking. Benchmark Apr09 opened RM29 lower at 1940 following the overnight losses of CBOT soy oil and NYMEX crude oil. It later climbed to intra day high at 1967 before lunch time but then fell again to the intra day low of 1916 when second session resumed, tracking the sudden fall of Dalian palm as it hit limit down prices. Buy on rumors sell on facts on MPOB Jan09 supply and demand data which released during lunch break also provided some selling pressure. However, bargain hunting and short covering had cushion the slide. Benchmark Apr09 bounced back from the low and continue to trade in that range before it finally settled RM44 lower at 1925. Meanwhile, a Hamburg-based analyst from Oil World had stated that global palm oil prices could improve in the coming weeks as end stock level were showing signs of declining.

Breaking News-RTRS-UPDATE 1-Argentina gets some rain but drought continues

BUENOS AIRES, Feb 10 (Reuters) - Key Argentine soy-growing areas received rain on Tuesday, but the country was still suffering from its worst drought in decades, forecasters said.

Breaking News-RTRS-Palm oil prices may rise on low stocks-Oil World

HAMBURG, Feb 10 (Reuters) - Global palm oil prices may rise in coming weeks because of increasing indications of low stocks in key producer Malaysia, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
Palm oil prices have shown price strength independent of rival soyoil, sunflower oil and rapeseed oil in past weeks, Oil World said.
Support partly stems from talk about a more pronounced than usual slowdown in Malaysian palm oil production partly caused by recent flooding, it said.
"But a bearish factor for palm oil prices is seen in the probable slowdown of import demand from India in the next two weeks, where burdensome stocks were accumulated until end December."