Trader's Comment: Palm oil futures extended its rally to hit 2300 mark on the back of supportive official March09 supply/demand data.

Palm oil futures extended its rally to hit 2300 mark on the back of supportive official March09 supply/demand data. Benchmark Jun09 initially encountered some selling pressure from profit taking activities that emerged in the early trading. It slid to intra day low of 2240 after opened almost unchanged at 2270. However, the released of MPOB supply/demand data during lunch break saw CPO prices to bounce back again when second session resumed trading. The data had shown that March end stock level fell 12.9% to 1.36 million tonnes (20-month low), which was lower than expectation of 1.40 million tonnes. The effect of lower stock level had offset the 7% increase in production. Benchmark Jun09 surged to intra day high of 2302 in late second session and finally ended RM30 higher at 2299. Both private cargo surveyors also showed good results on the first 10 days of April export data, as ITS and SGS reported an increase of 8% and 3% respectively.

RTRS-UPDATE 1-Malaysian palm stocks drops to 20-mth low-MPOB

KUALA LUMPUR, April 10 - Malaysian crude palm oil inventories fell 12.89 percent to a 20-month low in March as strong domestic and foreign consumption outstripped a rise in output, industry data showed on Friday.

The Malaysian Palm Oil Board said stocks slid to 1,363,657 tonnes, confirming fears of a supply squeeze that has prompted traders to scramble for positions in the last few days.

The figure, the lowest since July 2007, was in line with a forecast 12.8 percent fall to 1,362,000 tonnes in a Reuters poll.

Palm oil output in March was up 7.44 percent at 1,275,736 tonnes while shipments edged up 0.23 percent 1,260,380 tonnes. Traders say domestic consumption for March would have been about 200,000 tonnes as more Malaysians switch to cheaper palm oil as a cooking oil.

Breaking News-RTRS-China to study whether to end stockpiling rapeseed, soy beans

BEIJING, April 9 (Reuters) - The government is considering whether to continue stockpiling soy beans, rapeseed and corn, Zeng Liying, deputy director of State Administration of Grain, said on Thursday at a conference. Separately, a trader at an international trading house said China's rapeseed imports could rise as much as 3 million tonnes in the year ending in May, compared with about 900,000 tonnes in the previous year.

Trader's Highlight

DJI-NEW YORK, April 9 (Reuters) - U.S. stocks jumped on Thursday after Wells Fargo said it expects to report a record quarterly profit, fueling a month-long rally prompted by hopes that deterioration in the financial sector was abating.

The Dow Jones industrial average <.DJI> rose 246.27 points, or 3.14 percent, to 8,083.38. The Standard & Poor's 500 Index <.SPX> gained 31.40 points, or 3.81 percent, to 856.56. The Nasdaq Composite Index <.IXIC> climbed 61.88 points, or 3.89 percent, to 1,652.54.

NYMEX-NEW YORK, April 9 (Reuters) - U.S. crude futures ended higher for a second day in a row on Thursday, latching on to rising stock markets and data showing U.S. jobless claims eased, spurring hopes that oil demand could improve.

On the New York Mercantile Exchange, May crude settled up up $2.86, or 5.79 percent, at $52.24 a barrel, trading from $49.72 to $54.45.

CBOT-SOYBEANS - May up 1 cent at $10.07 per bushel. Support from USDA's April supply/demand report that showed 2008/09 U.S. soy ending stocks slightly below estimates and USDA trimming its Argentine soy crop estimate by 4 million tonnes to 39 million tonnes. Rallying stock market and crude oil supportive.

USDA pegs U.S. 2008/09 soy end stocks at 165 million bushels, below an average estimate of 167 million. If realized, would be the tightest bean supply since Aug. 31, 2004.

CBOT-SOYOIL - May up 0.43 cent at 35.42 cents per lb. Following soybeans, stock market and crude oil.

FCPO-KUALA LUMPUR, April 9 (Reuters) - Asian vegetable oil markets jumped on Thursday, lifted by expectations of global tightness in supplies and a rise in crude oil prices .

The benchmark June contract on Bursa Malaysia's Derivatives Exchange rose as much as 116 ringgit to 2,281 ringgit ($628.7) per tonne, a level unseen since Sept. 29, 2008 before settling at 2,269 ringgit, up 4.8 percent.

REGIONAL EQUITIES-BANGKOK, April 9 (Reuters) - Southeast Asian stocks ended mostly higher on Thursday on hopes that retail spending may be picking up in the United States, although trade was slow because of market holidays around the region.

In Kuala Lumpur, the index <.KLSE> gained 1.1 percent, ending a two-day decline, buoyed by buying of conglomerate Genting , up 3.3 percent, and top lender Maybank , up 1.6 percent.

The Philippine stock market <.PSI> is closed for the rest of the week for holidays, and Indonesia <.JKSE> was closed because of elections. Thailand is closed for three days next week.

DJI Daily: 8000 mark tested again

Market violated the 8000 mark again with triple digit gains. However, market need to stay firm above 8000 mark in order to maintain its upside momentum. We are looking for the immediate upside resistance at 8100-8200. Downside support is pegged at 7700

KLSE Daily: likely to continue its upside move

Market looks may continue to challenge the immediate upside resistance at 926-930. A successful breakout from 930 level may lead market to 936-944 (upside gap left over since 15/10/2008). Meanwhile, downside support is pegged 905-900.

FKLI Daily: The return of Bulls

Bulls look will continue to strike with upside target at 930-944. To the downside, support is pegged at 910-900.

FCPO Daily: Bull is gaining strength

Market had a fabulous breakout at 2200 and tested the resistance at 2250-2280 in intra-day basis. The overall technical landscape looks more bullish following prices stayed firm above 2200 mark. As for now, we are looking for the upside resistance at 2300-2350. To the downside, support is pegged at 2150-2100.

Trader's Comment: The “Bull” came back again with more strength this time as CPO prices ended with triple digit gains

The “Bull” came back again with more strength this time as CPO prices ended with triple digit gains after breaking above 2200 level. Benchmark Jun09 surged all the way up without looking back through out the day to finally settled RM104 higher at 2269 after it hit intra day high of 2281. Initially, rumors that came out early morning about high CPO production saw Benchmark Jun09 hit intra day low of 2156 after it opened unchanged. However, no follow through selling down were seen, but in fact had attracted more bargain hunters. Buyers became increasingly fierce especially after prices hit above 2200 level. Traders were expecting much more lower stocks level ahead of some crucial data scheduled to release tomorrow. MPOB and private cargo surveyors will released their own supply/demand data and the first 10 days of April export figures respectively. External market also showed strong movements today. eCBOT soy complex extended their previous session’s gain while waiting for tonight’s USDA report. Dalian palm ended almost 2% higher. Meanwhile, Asian time NYMEX crude oil also climbed to above $51. Commercial covering interest were seen at underlying cash market.

Breaking News-RTRS-Oil World sees big fall in Argentina's 2009 soy crop

HAMBURG, April 7 (Reuters) - Argentina's 2009 soybean crop is likely to fall to 40-41 million tonnes from 46.7 million tonnes in 2008, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
In early March Oil World had estimated Argentina's crop this year at 42.5 million tonnes. Soybeans were struggling against a lack of rainfall which had cut yields, it said.

Breaking News-RTRS-China may sell more soy reserves on strong demand

BEIJING, April 8 (Reuters) - A rise in soymeal demand in China has spurred soybean imports by the largest buyer and triggered concerns the government agency may release more reserves into the domestic market, traders said on Wednesday.
Sinograin, which manages the state reserve, has sold about 100,000 tonnes of imported soy reserves in its latest sale last month to crushers, bringing its total sales so far in the year to about 500,000 tonnes, they said.
"It has so far released small amounts because soy prices are still not good enough. If prices continue to rise by another 200 yuan (per tonne), it may release stocks of a large amount," said one trading executive with a major trading house.

Breaking News-RTRS-Lanworth cuts Brazil soy view, raises Argentina

BUENOS AIRES, April 7 (Reuters) - Chicago-based data firm Lanworth trimmed its estimate for Brazil's 2008/09 soy crop to 56.36 million tonnes on Tuesday, but slightly raised its outlook for Argentine output to 43.2 million tonnes.
The Argentine forecast is significantly higher than the latest weekly estimate by the Buenos Aires Grains Exchange, which sees production falling to 39.4 million tonnes due to drought. Last season, Argentina produced 46.2 million tonnes.

DJI Daily: little changed

A mild gain was not enough to change the immediate technical landscape, thus market may continue its consolidate mode in near term. We are looking for the immediate upside resistance at 8000. Downside support remained at 7500-7400

KLSE Daily: Consolidation phase may extend

Consolidation phase may extend in near term following market fully cover the downside gap at 912-910. We continue to look for the immediate upside resistance at 926-930. Meanwhile, downside support is pegged 900 mark.

FKLI Daily: Bull not to give up

Market tested the immediate support at 912.5 in intra-day basis but it manage to defend well ended above 912.5. Bull looks not to give up and may defend and try hard to survive above 900 mark. To the upside, immediate resistance is looking at 928 followed by 942.5.

FCPO Daily: Holding ground

Market was holding well above 2100 mark despite a negative close. The overall technical landscape remains positive. Thus, we maintain our view sideways to higher in near term market. Immediate upside resistance is looking at 2200 followed by 2250-2280 To the downside, support is pegged at 2120-2100 followed by 2070-2050.

Trader's Comment: Palm oil futures ended marginally lower after ranging between 2183-2153.

Palm oil futures ended marginally lower after ranging between 2183-2153. Market was uncertain today in the midst of mix sentiment. While waiting for the official March09 supply & demand data by MPOB, there was some bullish news on the palm oil stock level after Reuters poll reported that March’s inventory level likely to slide 12.8% at 1.36 million tones. Coincidently, analysts from Oil World also forecasted that stock level to fall to between 1.30-1.40 million tonnes on weaker output. However, the weak external market somehow outweighed this supportive news. eCBOT soy oil prices edged down today and Asian time NYMEX crude oil also fell below $48. Benchmark Jun09 in the end settled RM15 lower at 2165 after hovering between 2183-2153 through out the day. It earlier opened RM7 lower at 2173 on weak closing of overnight soy oil and crude oil.

RTRS-POLL-Malaysia's March palm oil stocks seen at 20-month low

KUALA LUMPUR, April 8 - Malaysia's March palm oil stocks are likely to slide 12.8 percent to a 20-month low, slowing slightly as exports remained flat and output notched weak growth after months of decline, a Reuters poll showed on Wednesday.
March's inventory level in the world's second-largest producer is seen at 1.36 million tonnes from February, the lowest since July 2007, feeding fears of a squeeze in global vegetable oil supplies, according to a median estimate of five plantation houses.

Breaking News-RTRS-Malaysia palm oil stocks at 20-month low-Oil World

HAMBURG, April 7 (Reuters) - Malaysia's end-March palm oil stocks may fall to a 20-month low of between 1.30 million and 1.40 million tonnes from 1.56 million tonnes at the end of February, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
Official crop agency Malaysian Palm Oil Board is due to release the March palm oil exports, production and stocks data on Friday.

Trader's Highlight

DJI-NEW YORK, April 7 (Reuters) - U.S. stocks slid on Tuesday, hammered by fears that companies will show they struggled in the first quarter as the recession dragged on as the earnings season kicked off with Alcoa.

The Dow Jones industrial average <.DJI> fell 186.29 points, or 2.34 percent, to 7,789.56. The Standard & Poor's 500 Index <.SPX> lost 19.93 points, or 2.39 percent, to 815.55. The Nasdaq Composite Index <.IXIC> gave up 45.10 points, or 2.81 percent, at 1,561.61.

NYMEX-NEW YORK, April 7 (Reuters) - U.S. crude oil futures fell further in post-settlement trading on Tuesday, after the industry group American Petroleum Institute reported a rise in domestic crude stocks that was much more than expected.

The U.S. Energy Information Administration, statistical branch of the Department of Energy, will issue its own inventory report at 10:30 a.m. EDT on Wednesday.

On the New York Mercantile Exchange at 4:55 p.m. EDT (2055 GMT) May crude was down $2.53, or 4.96 percent, at $48.52 a barrel. It earlier settled lower for a third day in a row, at $49.15, down $1.90, or 3.72 percent, after trading from $48.89 to $51.82.

CBOT-SOYBEANS - May down 4-1/2 cents at $9.89-1/2 per bushel; November down 3-1/2 cents at $9.08-1/2.

Falling stock market and crude oil as the dollar firmed weighed on soy market. Underpinned by tight 2008/09 U.S. soy supply amid strong export pace, disappointing Argentine harvest yields, and talk of fresh Chinese interest in U.S. soy.

Exporters seeing fresh Chinese interest in U.S. soybeans for May, June shipment. U.S. values about 5 cents above Brazilian soy but Brazil nearby supplies tight.

Brazil 2008/09 soy crop seen at 58.1 million tonnes versus 57.6 million tonnes in February - government.

CBOT-SOYOIL - May down 0.15 cent at 34.84 cents per lb. Following lower crude oil.

FCPO-JAKARTA, April 7 (Reuters) - Malaysian crude palm oil futures rose to a fresh six months closing high on Tuesday boosted by hopes that palm oil stocks in the world's second biggest producer dropped further in March, traders said.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange rose 35 ringgit, or 1.6 percent, to 2,180 ringgit ($607.24) per tonne, after going as high as 2,201 ringgit.

Other traded months rose between 15 and 45 ringgit. <0#KPO:>. Overall volume was at 14,634 lots of 25 tonnes each, against the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, April 7 (Reuters) - Major Southeast Asian stocks fell on Tuesday as losses in financial shares and other index heavyweights ended a five-day rise in Singapore, Malaysia and Indonesia amid renewed worries over the U.S. banking sector.

Singapore's Straits Times Index <.FTSTI> dropped 2.5 percent, erasing part of a 10.4 percent gain over the past five days, with top bank DBS Group down 3.8 percent and United Overseas Bank 4.2 percent lower.

Malaysia's index <.KLSE> eased 0.4 percent after a five-day gain of 6.3 percent, with banks leading losers. Top lender Maybank slid 5.8 percent, CIMB lost 3.9 percent and Public Bank shed 1.3 percent.