Breaking News-RTRS-ANALYSIS-Palm supply squeeze may trigger rush to buy

KUALA LUMPUR, April 17 (Reuters) - Stung by the twin woes of erratic weather and aggressive replanting, palm oil traders are bracing for a supply squeeze in the months ahead, spurring importers to stock up ahead of an anticipated rise in demand.
This is already reflected in Malaysian prices -- palm is one of the biggest gainers this year, soaring 42 percent -- and analysts say any further rise may force Indian and Chinese buyers to shift to soy oil, which has risen at a much lower rate.
Analysts said top producers Indonesia and Malaysia could see palm output fall in April-June, rather than a gradual increase as usually expected, driving total stocks down by more than half to below 2.5 million tonnes by the end of the period, from a record 5 million tonnes in November.

Breaking News-RTRS-China seen extending soybean buying plan

BEIJING, April 17 (Reuters) - China will extend state purchases of domestic soybeans by two months beyond the scheme's planned April expiry, traders said on Friday, a move that could keep imports at the near record levels that have boosted Chicago futures to six-month highs.
The government is still 2 million tonnes short of its target for purchases as many farmers are still holding onto last year's harvest, while beans often don't meet required moisture levels.
"The purchase for reserves will last until June, but the amount will remained unchanged. The authorities are close to a decision as far as we know," said Yu Haifeng, a dealer with Heilongjiang Tianqi Futures Co. Ltd.

Trader's Highlight

DJI-NEW YORK, April 17 (Reuters) - U.S. stocks rose on Friday, with the Dow scoring its biggest six-week gain since July 1938, helped by a reassuring report on the mood of consumers and stabilization in General Electric and Citigroup's quarterly results.

GE and Citigroup both posted better-than-expected results, lifting the broader market, and bank stocks rallied as investors bet other financial companies could follow up with more news showing the sector is on the mend.

The Dow Jones industrial average <.DJI> rose 5.90 points, or 0.07 percent, to 8,131.33. The Standard & Poor's 500 Index <.SPX> climbed 4.30 points, or 0.50 percent, to 869.60. The Nasdaq Composite Index <.IXIC> added 2.63 points, or 0.16
percent, to 1,673.07.

NYMEX-NEW YORK, April 17 (Reuters) - U.S. crude oil futures ended higher on Friday, backed by Wall Street's rise on economic optimism, but gains were pared sharply from the day's highs amid bloated oil inventories and poor demand.

On the New York Mercantile Exchange, May crude ended up 35 cents, or 0.7 percent, at $50.33 a barrel, trading from $49.41 to $51.37. From the previous week, it fell $1.91, or 3.66 percent.

CBOT-SOYBEANS - May down 7-1/2 cents per bushel at $10.51 per bushel.

Turned lower on profit taking after soaring to fresh six-month high of $10.73, surpassing 200-day moving average of $10.71-1/4.

Exporters sell 275,000 tonnes U.S. soybeans to unknown, including 55,000 tonnes for 2008/09 - USDA.

Aggressive buying of U.S. and Brazilian soybeans this week, 10-15 cargoes, by China and reports of low soybean yields in the Argentine harvest fueled this week's soy rally.

CBOT-SOYOIL - May up 0.02 cent per lb at 36.77 cents per lb. Support from rally in Asian trade for soyoil and palm oil.

FCPO-KUALA LUMPUR, April 17 (Reuters) - Malaysian palm futures jumped 3.3 percent on Friday as traders chased tight supplies, renewing a rally that saw palm widen its premium to soyoil.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange settled up 77 ringgit to 2,435 ringgit ($673.8) per tonne.

Other traded months rose between 20 and 77 ringgit while Sept 2010 contract fell 25 ringgit <0#KPO:>. Overall volume stood at 17,340 lots of 25 tonnes each.

REGIONAL EQUITIES-Other major Southeast Asian stock markets ended with small
gains, with Asian stocks in general rising after better-than-expected results from JPMorgan.

Singapore <.FTSTI> rose 0.3 percent, with top lender DBS Group up 0.5 percent and telecom firm SingTel up 0.8 percent. Malaysia <.KLSE> gained 0.4 percent, with biggest power firm Tenaga Nasional up 2.9 percent. Indonesia <.JKSE> extended its gains for a fifth day, ending
up 0.6 percent,

DJI Weekly: Not much changes

Market remains hovering around 8000 mark. Thus, we maintain the upside resistance and downside support at 8300-8400 and 7500-7400 level respectively.

KLSE Weekly: Maintain its upward move

Market looks may continue to move higher with upside resistance now is looking at 973-993. To the downside, support is pegged at 936.

FKLI Weekly: Remains looking good

Weekly chart remains looking good following market hits a new high for the year. Thus, we maintain positive towards the near term market. We are now looking for the upside resistance at 980-990. Downside support is pegged at 935-925

FCPO Weekly: Remains in bullish tone

Bull looks not to give up although market has been rebounded sharply for three weeks in a row. As for now, we look for the upside resistance at 2550-2600 followed by 2665-2675. While, downside support is pegged at 2300-2275 followed by 2200-2185.

Trader's Comment: CPO futures ended broadly higher on pre-weekend covering after last 2 days of weak close.

CPO futures ended broadly higher on pre-weekend covering after last 2 days of weak close. Initially, Benchmark July09 slid to intra day low of 2322 on some follow through selling from yesterday’s weak closing. However, it then bounced back quickly as bargain hunting buying and aggressive short covering activities emerged. This saw Benchmark July09 prices broke 2400 easily in the morning session. It surged further to 2446 in the afternoon session and then hovering between 2440-2420 before it finally settled RM77 higher at 2435. Generally, the overall market was still supportive. Players were still chasing on supply tightness, as end stock were yet unable to build up in the coming months.

Breaking News-RTRS-China soy imports stay healthy, no delay worries

BEIJING, April 16 (Reuters) - China's soy imports have kept healthy on good crushing margins following a recovery of demand for soymeal and traders expect the momentum to last until June.
Chinese quarantine authorities in Guangdong have not interrupted any U.S soy cargoes after inspectors found disease in 10 batches of samples over the past three months, said one trading manager in a major crusher in Guangzhou.

Breaking News-RTRS-POLL-US soy prices to gain another dollar by summer

CHICAGO, April 16 (Reuters) - U.S. soybean futures, already at their highest
level in six-months, are expected to tack on another dollar per bushel by this
summer as China keeps buying and supplies in the United States keep dwindling, A
Reuters poll of analysts and traders showed.

Trader's Highlight

DJI-NEW YORK, April 16 (Reuters) - U.S. stocks surged on Thursday as expectations of reassuring results from bellwethers, including Google, lifted technology shares, while JPMorgan's better-than-expected profit added to bank stabilization hopes.

The Dow Jones industrial average <.DJI> rose 95.81 points, or 1.19 percent, to 8,125.43. The Standard & Poor's 500 Index <.SPX> gained 13.24 points, or 1.55 percent, to 865.30. The Nasdaq Composite Index <.IXIC> jumped 43.64 points, or 2.68
percent, to 1,670.44.

NYMEX-NEW YORK, April 16 (Reuters) - U.S. crude futures ended higher on Thursday, just below $50 a barrel, as traders dealt with the expiration of options on the front May contract.

On the New York Mercantile Exchange, May crude settled up 73 cents cents, or 1.48 percent, at $49.98 a barrel, trading from $49.11 to $50.48.

CBOT-SOYBEANS - May up 23-1/2 cents at $10.58-1/2 per bushel.

Rallies to new six-month high of $10.59 per bushel amid strong demand for soy by China and shrinking supplies, in addition to support from news late on Wednesday that the Buenos Aires Grains Exchange trimmed its estimate for Argentine soy output for this year to 37 million tonnes, from a previous estimate of 39.4 million.

CBOT-SOYOIL - May down 0.20 cent per lb. at 36.75 cents per lb.

Profit-taking after big gains early in the week weighing on market, but soyoil underpinned by gains in soy.

FCPO-KUALA LUMPUR, April 16 (Reuters) - Malaysian palm futures fell 1.7 percent on Thursday as traders paused to take profits from a rally triggered by expectations of lower domestic inventories and strengthening global soyoil markets.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange settled down 40 ringgit at 2,358 ringgit ($655) per tonne after posting gains in the morning session.

Other traded months rose between 30 and 75 ringgit while the November contract inched up <0#KPO:>. Overall volume climbed to 16,116 lots from the normal 10,000 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, April 16 (Reuters) - Southeast Asian stock markets ended mixed on Thursday, some losing early gains after downbeat economic data from China, and political violence pushed Thailand
lower after a holiday, but not by as much as some had feared.

Singapore's benchmark Straits Times Index <.FTSTI> fell 0.8 percent. In Kuala Lumpur, Malaysia's benchmark stock index <.KLSE> rose 0.5 percent, with biggest power firm Tenaga Nasional surging 6.2 percent after it announced second-quarter earnings that were above expectations. In Jakarta, the main index <.JKSE> rose for a fourth day, up nearly 2 percent at its highest since Oct. 7.

DJI Daily: improve a little

Market improved a little as 8100 tested. However, it was not enough to change the immediate daily technical outlook. Thus,we maintain our sideways view in near term market. To the upside, resistance is at 8200-8400. Downside support remains at 7700 level.

KLSE Daily: still looking good....

Upward momentum remains intact following resistance at 961-965 was violated. As for now, we continue to look for the resistance at 970-975. Meanwhile, downside support is maintain at 936 followed by 925-922 (gap leftover on 10/4/2009).

FKLI Daily: Bull took a breathe

Bull took a breathe after the recent sharp rebound as market gave up all its early gains to end negatively. As for now, upside resistance is at 974. To the downside, support is pegged at 942.5-940 followed by 931-928 (gap left over on 10/4/2009).

FCPO Daily: Correction mode likely to continue

Market appears reversal signal with a long black candle printed at the higher end. Thus, correction mode is likely to continue in near term. We are now looking for the upside resistance at 2540. To the downside, support is pegged at 2315-2300 followed by 2280-2250.

Trader's Comment: CPO futures extended from yesterday’s losses as traders continue to book profit

CPO futures extended from yesterday’s losses as traders continue to book their profit after prices rallied strongly since last week. New Benchmark July was initially well supported as it hovered between 2443-2412 through out the morning session on the back of higher soy oil prices in the early Asian time trading. However, sellers became more aggressive in the afternoon session. Benchmark July09 began to fall all the way down to intra day low of 2347 in late trading before it finally settled RM40 lower at 2358. External market was mix today as eCBOT soy oil turned lower when it surrendered it earlier gains while Dalian palm edged higher. Basically market is in correction phase after recent strong rally.

Breaking News-RTRS-UPDATE 1-Indonesia may keep CPO export tax at zero pct in May

JAKARTA, April 16 (Reuters) - Indonesia may keep its palm oil export tax at zero percent in May, despite a recent rise in palm oil prices, Trade Minister Mari Pangestu said on Thursday.

Trader's Highlight

DJI-NEW YORK, April 15 (Reuters) - U.S. stocks rose on Wednesday amid numerous signs the recession could be abating and data from American Express signaled the ability of some consumers to pay their bills is stabilizing.

The rally was spurred by positive comments from some major banks and hopes that the economy was showing signs of stabilization, but those hopes were dented by Tuesday's
unexpected drop in retail sales.

After a choppy session, the Dow Jones industrial average <.DJI> gained 109.44 points, or 1.38 percent, to 8,029.62. The Standard & Poor's 500 Index <.SPX> rose 10.56 points, or 1.25 percent, to 852.06. The Nasdaq Composite Index <.IXIC> added
1.08 points, or 0.07 percent, to 1,626.80.

NYMEX-NEW YORK, April 15 (Reuters) - U.S. crude oil futures ended lower on Wednesday, pressured by data showing domestic crude stocks rose last week to their highest in nearly 19 years.
Losses were sharply pared, however, as Wall Street rose on better-than-expected U.S. manufacturing data, and that helped crude recover from the day's lows.
On the New York Mercantile Exchange, May crude settled down 16 cents, or 0.32 percent, at $49.25 a barrel, trading from $48.91 to $50.79.

CBOT-CHICAGO, April 15 (Reuters) - U.S. soybeans climbed for a fifth straight session on Wednesday and hit a fresh three-month high as China, the world's largest soy importer, keeps buying soy.

There was talk the Brazilian soybean export market was on fire and export sources said Brazil sold six soybean cargoes with four destined for China and two headed for Taiwan.

FCPO-KUALA LUMPUR, April 15 (Reuters) - Malaysian palm futures fell 1.1 percent on Wednesday, easing from an 8-month high notched earlier in the session as some investors booked profits on a rally fuelled by speculation of a drawdown in stocks.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange rose as much as 55 ringgit to 2,540 ringgit ($703.4) per tonne, a level unseen since Sept. 3. The contract settled down 26 ringgit at 2,459 ringgit.

Other traded months fell between 22 and 41 ringgit except the front-month which rose 20 ringgit <0#KPO:>. Overall volume doubled to 21,681 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-Elsewhere in the region, Singapore's Straits Times Index
<.FTSTI> finished 0.47 percent higher, driven by property shares.

The Kuala Lumpur Composite <.KLSE> inched 0.31 percent higher. The region's smaller markets fell. Philippines <.PSI> lost
0.72 percent while Vietnam shares <.VNI> dropped 2.24 percent.

DJI Daily: Conlidation phase likely to extend

Nothing much changes on the immediate technical landscape as market remains holding around 8000 mark. Thus,consolidation phase is likely to extend in near term. Resistance and support maintain at 8100-8200 and 7700 level respectively.

KLSE Daily: Upward momentum remains intact

Upward momentum remains intact. As for now, we continue to look for the resistance at 961-965. Meanwhile, downside support is maintain at 936 followed by 925-922 (gap leftover on 10/4/2009).