Trader's Highlight: RTRS-Bursa Malaysia, CME in palm oil futures deal

KUALA LUMPUR, Aug 11 (Reuters) - CME Group Inc, the world's largest derivatives exchange, will develop a U.S. dollar crude palm oil (CPO) futures contract using settlement prices of Malaysia's ringgit contracts for trading on CME Globex.
CME will work with stock exchange operator Bursa Malaysia to offer the cash-settled futures contract in the United States aimed at globalising the Malaysian CPO futures market, a statement from the two companies said.
The two parties will also explore trade matching services, product licensing and minor cross-equity investments in a partnership still subject to regulatory approval.
The Chicago-based exchange operator said the proposed partnership will increase its presence in Asia and expand its transaction processing business opportunities.
Specific terms of the partnership will be announced later, the two exchanges said in a statement.

Trader's Highlight

DJI-NEW YORK, Aug 10 (Reuters) - U.S. stocks fell on Monday as investors booked profits following a four-week rally that took the broad S&P 500 index to a 10-month high on Friday.

The decline comes ahead of a plethora of economic data due this week, including the Federal Reserve's statement on interest rates and the state of the economy, as well as government figures for monthly retail sales.

The Dow Jones industrial average <.DJI> dropped 50.56points, or 0.54 percent, to 9,319.51. The Standard & Poor's 500 Index <.SPX> fell 5.88 points, or 0.58 percent, to 1,004.60. The Nasdaq Composite Index <.IXIC> lost 12.65 points, or 0.63 percent, to 1,987.60.

NYMEX-NEW YORK, Aug 10 (Reuters) - U.S. crude oil futures ended lower on Monday in choppy trading, weighed by Wall Street's dip on profit-taking after a four-week rally.

On the New York Mercantile Exchange, September crude settled down 33 cents, or 0.47 percent, at $70.60 a barrel, trading from $70.09 to $71.57.

CBOT-SOYBEANS - August down 14 cents per bushel at $11.70-1/2. New-crop November down 28-1/2 cents per bushel at $10.10.

Weighed down by long-liquidation and profit-taking before the release on Wednesday of USDA's August crop and supply/demand reports.

CBOT-SOYOIL - August down 0.29 cent per lb at 36.49. Spillover pressure from falling soy in positioning, long-liquidation and profit-taking.

FCPO-JAKARTA, Aug 10 (Reuters) - Malaysian palm oil futures rose 2.6 percent to their highest close in near eight weeks on Monday as investors shrugged off poor early-August exports and focused on lower palm oil stocks in July, a bullish factor for prices, traders said. Palm prices correlate inversely with palm oil stocks.

Crude palm oil stocks at the world's number 2 producer fell 5.67 percent to 1,328,440 tonnes from a revised 1,408,317 tonnes in June, the Malaysian Palm Oil Board (MPOB) said, beating market expectations for a 3.7 percent fall to 1.35 million tonnes.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange settled up 60 ringgit to 2,400 ringgit ($685.32), a level last seen on June 16.

REGIONAL EQUITIES-BANGKOK, Aug 10 (Reuters) - Indonesia's bourse <.JKSE> rose 1.7 percent on Monday as favourable quarterly GDP data bolstered buying of big-cap shares such as Bumi Resources and Astra Agro, but shares in Malaysia and Thailand mostly lost early gains.

Malaysia's index <.KLSE> edged up 0.3 percent, Thailand's <.SETI> inched down 0.07 percent, the Philippine index <.PSI> rose 2.4 percent and Vietnam's <.VNI> climbed 2.2 percent. In Kuala Lumpur, gainers were led by a 1.3 percent rise in Axiata Group and a 0.5 percent gain in KL Kepong while Malayan Banking lost 0.3 percent.

NYMEX Crude Daily: Sideways

Market is struggling and moving in sideways manner in between 73.38 to 70-69.00 levels. A breakout of either way may provide a more clearer direction to market.

FKLI Daily: Looks little tiredness

Market looks little tiredness to maintain the upward posture. Thus, market may due for technical correction in near term. As for now, we maintain our upside target at 1200 while downside support is pegged at 1175-1170 followed by 1158.5.

FCPO Daily: Building up base

Market surged up further to stay firm at 2400 levels had brighten up the overall technical landscape to bias upside potential. However, a more concrete base is still needed to build up for a sustainable rally in near term. Thus, market may due for correction and may cover the downside gap left over at 2354-2345 (gap left over on 10/8/2009). To the upside, resistance is looking at 2440-2450.

Trader's Comment: Palm oil futures rallied broadly higher as lower stocks outweigh poor export.

Palm oil futures rallied broadly higher as lower stocks outweigh poor export. The released of supply & demand data by MPOB which shows that stock level in July fell 5.67% to 1.32 million tones was significantly below market expectations as Reuters poll predicted a 3.7% decline to 1.35 million tones last week. Benchmark Oct09 rose steadily through out most of the sessions and hit intra day high of 2424 before it ended RM60 higher at 2400. Players had ignored the weak export data by private cargo surveyors ITS that had reported a decline of 12.6% on the first 10 days of Aug compared with last month corresponding period. On the other side, the bullish external vege oil markets also enhanced the buying activity in local BMD. Dalian palm ended strongly higher after it gained more than 4% while eCBOT soy oil also edged higher during Asian time trading.

Breaking News-RTRS-CORRECTED-China to hold new state soybean auctions on Aug.12

BEIJING, Aug 7 (Reuters) - China will hold a fourth round of state soybean auctions on August 12, with a planned release of 500,000 tonnes, on a par with last week's sale, the official National Grain and Oil Trade Centre said on Friday.
In three sales, China sold 4,900 tonnes of soybeans, or less than 1 percent of the amount on offer, as crushers are reluctant to buy the expensive soybean reserves.
Analysts said they expected the government to offer subisidies for soybeans soon, as plants in northeast regions have been suffering from crushing losses because of high soy prices.

Breaking News-RTRS-UPDATE 2-EU buyers stop US soy imports after GMO corn found

MADRID/WASHINGTON, Aug 6 (Reuters) - European Union buyers have voluntarily moved to stop imports of U.S. soy after shipments were found containing traces of genetically modified corn, a spokesman for the EU in Washington said on Thursday.
European trade sources said U.S. soybean meal shipments to Spain and Germany were found with traces of GMO corn, which is prohibited in the European Union.
"The industry has itself decided to stop all imports of U.S. soy, as of now," Mattias Sundholm told Reuters.

Trader's Highlight

DJI-NEW YORK, Aug 7 (Reuters) - World stocks ended higher on Friday, while bonds took a hit and the U.S. dollar recovered after better-than-expected U.S. unemployment data reinforced the view that the global economic slump may be nearly over.

The U.S. unemployment rate fell to 9.4 percent in July, the first fall in 15 months, while employers cut 247,000 jobs compared to a forecast of 320,000 based on a Reuters poll.

On Friday, the Dow and the S&P 500 ended at closing highs for 2009. Earlier this week, on Tuesday, the Nasdaq popped back above the 2,000 mark to end at 2,011.31 -- its 2009 closing high.

NYMEX-NEW YORK, Aug 7 (Reuters) - U.S. crude oil futures ended lower on Friday, as an encouraging government jobs report fueled big gains on the dollar, dampening interest in commodities.

On the New York Mercantile Exchange, September crude settled down $1.01, or 1.4 percent, at $70.93 a barrel, trading from $70.55 to $72.84.

NYMEX September crude's session high was the highest since the $73.38 peak hit on June 30, itself the highest since the Oct. 21, 2008 intraday high of $75.69.

CBOT-SOYBEANS - CBOT August up 14 cents per bushel at $11.84-1/2. New-crop November up 8-1/2 at $10.38-1/2.

Supported by tight stocks of soy and hotter weather in the U.S. Midwest crop belt that led to concerns about potential harm to some of the soybean crop that is in its key pod-setting stage of development. Gains limited by firm dollar.

CBOT-SOYOIL - CBOT August down 0.05 cent per lb at 36.78. Support from gains in soybeans but rally capped by weak crude oil and firm dollar.

FCPO-KUALA LUMPUR, Aug 7 (Reuters) - Malaysian palm oil futures inched up 0.7 percent on Friday as some investors took positions with an eye to potentially bullish vegetable oil stocks data in the Southeast Asian country due next week.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange settled up 16 ringgit at 2,341 ringgit ($668.8), just 0.7 percent off a seven-week high hit on Wednesday.

Industry regulator the Malaysian Palm Oil Board will issue July palm oil data on Monday at 0430 GMT. Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance will unveil Aug. 1-10 on the same day.

REGIONAL EQUITIES-BANGKOK, Aug 7 (Reuters) - Singapore's main share index <.FTSTI> fell 2 percent on Friday, leading other Southeast Asian stock markets lower, as top bank DBS tumbled after it reported rising bad debts in the second quarter.

DBS , Southeast Asia's biggest bank, lost 3.5 percent after a spike in bad debts overshadowed better-than-expected net profits. But the outlook for the bank
has improved as it continues to seize market share from foreign rivals on loans.

Malaysia's index <.KLSE> inched up 0.08 percent, Indonesia's index <.JKSE> lost 0.5 percent, Thailand's <.SETI> dropped 0.8 percent, the Philippine index <.PSI> fell 2.1 percent and Vietnam's <.VNI> edged down 0.16 percent.

In Kuala Lumpur, Genting fell 1.6 percent while palm plantation firms fell along with weak palm oil futures, with Sime Darby down 0.6 percent and IOI Corp down 0.4 percent.

DJI Weekly: Gaining upward momentum

Market is gaining its upward momentum after forming base at 9000 levels. Hence, market looks may slowing inching higher and may want to challenge its upside resistance at 9600-9800 in near term.

KLSE Weekly: May challenge 1200-1220.

Overall technical landscape remains strong and looks market may likely to challenge 1200-1220 in near term. To the downside, support is pegged at 1160-1150.

FKLI Weekly: No sign of reversing

Bulls continue to inch higher without showing any sign of tiredness. Hence, we maintain our bullish view in near term with upside resistance and downside support is at 1200 and 1160-1150 level respectively.

FCPO Weekly: Good Closing

A good closing for the week had strengthen further the immediate technical landscape to bias sideways to upside potential in near term. Therefore, we adjusted our upside projection to 2450-2460. To the downside, support is pegged at 2100.

Trader's Comment: CPO futures prices ended off the high on pre-weekend short covering.

CPO futures prices ended off the high on pre-weekend short covering. Trading activities were cautious ahead of Jul09 supply and demand data by MPOB and 1-10 days export data by private cargo surveyors scheduled to release on Monday. Weaker regional stock market and lower NYMEX crude oil coupled with negative E-CBOT soyoil prices traded in Asian trading time continue to weigh on the market sentiment. However, talks that export for the 1-10 days around 450,000 tonnes provided some cushion to the downside and saw prices ranging from 2306 to 2329 for most of the trading session. Short covering emerged at late trading session pushed prices to close off the intra-day high at 2341 with total daily volume stood at 11,528 contracts changed hands.

Breaking News-RTRS-POLL-Malaysia's July palm oil stocks seen at 3-month low

17:59 06Aug09 -MALAYSIA'S END-JULY PALM OIL STOCKS SEEN DOWN 3.7 PCT FROM JUNE AT 1.35 MLN TONNES - REUTERS POLL
17:59 06Aug09 -MALAYSIA'S JULY PALM OIL OUTPUT SEEN UP 2.4 PCT FROM JUNE - POLL
17:59 06Aug09 -MALAYSIA'S JULY PALM OIL EXPORTS SEEN UP 10.3 PCT FROM JUNE - POLL

Breaking News-RTRS-UPDATE 2-Brazil's 2009/10 grain crop may grow 9 pct - AgMin

SAO PAULO, Aug 6 (Reuters) - Output from Brazil's 2009/10 grain crop, which will begin planting in September, could grow by 9 percent from this season as weather is expected to improve and planted area expand, Agriculture Minister Reinhold Stephanes said on Thursday.

Breaking News-RTRS-China soybean mkt bullish on high soy prices-survey

BEIJING, Aug 6 (Reuters) - China's soybean market has turned
bullish due to rising prices of imported soybeans, also pushing
up soyoil and soymeal prices, a survey by an official think tank
said on Thursday.
"Soyoil spot prices were lifted by 500 to 600 yuan ($73.21-
$87.85) per tonne in the week," the China National Grain and Oils
Information Centre said (CNGOIC).

Trader's Highlight

DJI-NEW YORK, Aug 6 (Reuters) - Caution crept back into U.S. stock markets on Thursday a day ahead of the July unemployment report and as a cautious outlook from technology bellwether Cisco Systems cast a chill, but European shares rose on soothing earnings results.

A surprise move by the Bank of England to expand its bond buying program by 50 billion pounds, a measure known as quantitative easing, also supported European stocks, driving up financial shares.

The BoE's move, however, along with its decision to hold interest rates at a record low 0.50 percent pushed down sterling against the dollar by more than 1 percent.

The dollar also rose off multi-month lows against the euro after the European Central Bank left its record-low benchmark interest rate unchanged at 1.0 percent. The stronger dollar contributed to losses in U.S. crude oil after it topped $72 a barrel, a one-month high.

The Dow Jones industrial average <.DJI> fell 24.71 points, or 0.27 percent, to 9,256.26. The Standard & Poor's 500 Index <.SPX> lost 5.64 points, 0.56 percent, to 997.08. The Nasdaq Composite Index <.IXIC> dropped 19.89 points, or 1 percent, to 1,973.16.

NYMEX-NEW YORK, Aug 6 (Reuters) - U.S. crude oil futures ended lower in choppy late trading on Thursday, pressured by a
further decline on Wall Street and as the dollar strengthened on risk aversion.

On the New York Mercantile Exchange, September crude settled down 3 cents, or 0.04 percent, at $71.94 a barrel, trading from $71.18 to $72.42.

The June 30 and 2009 peak of $73.38 was the highest front-month price since crude hit $75.69 on Oct. 21.

CBOT-SOYBEANS - August down 4-1/2 cents to $11.70-1/2 a bushel; November down 15 to $10.30.

Firmer dollar spurred profit-taking setback. Outlooks for record large U.S. soy crop and warmer weather this week to boost crop growth also weigh. Strong export demand underpins.

CBOT-SOYOIL - August down 0.69 cent to 36.83 cents per lb. Firm dollar and falling soybeans pressure.

FCPO-KUALA LUMPUR, Aug 6 (Reuters) - Malaysian palm oil futures edged lower on Thursday as weaker crude oil and equity markets stalled a rally driven by supply fears in the Southeast Asian country.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange settled down 10 ringgit to 2,325 ringgit ($666.6).

REGIONAL EQUITIES-BANGKOK, Aug 6 (Reuters) - Stock markets in Indonesia and Thailand rose more than 1 percent on Thursday, pushed up by demand for shares in coal miners, but Singapore inched down in late trade, weighed down by banking shares.

Singapore's index <.FTSTI> ended down 0.2 percent, erasing its early gain of almost 1 percent. Malaysia's index <.KLSE> was up 0.38 percent and Vietnam's <.VNI> edged up 0.03 percent, led by a 5 percent rise in electrical components maker REE .

In Kuala Lumpur, banking shares rose, with Malayan Banking up 1.5 percent and Bumiputra Commerce up 1.3 percent. Fitch Ratings said that, judging by simulated stress tests, Malaysian banks appeared to be sound, despite extremely difficult economic conditions.

FKLI Daily: Remains bullish posture

Bulls are likely to continue its northern journey in near term with upside target remains at 1200 level. While, immediate downside support is maintain at 1170-1165.

Trader's Comment: CPO futures prices recouped some of its early losses to stay firm at 2300 mark.

CPO futures prices recouped some of its early losses to stay firm at 2300 mark. Spilled over bearish sentiment from the weaker regional stock market had dragged the NYMEX crude oil and E-CBOT soyoil prices in Asian Trading time to drop sharply and resulted a panicky selling emerged at local front. Benchmark Oct 09 opened RM 35 lower at 2300 and sank to hit the intra-day low at 2275 before bouncing to close at 2293 at the morning break. Prices were well absorbing in the afternoon session and saw intra-day short covering activities pushed the Oct 09 to the day high at 2345 before settling RM 10 lower at 2325. A choppy trading day ends with 16,049 contracts changed hands.