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.

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.