Breaking News-RTRS-US analyst sees larger S.American soy, corn crops

CHICAGO, Oct 15 (Reuters) - Helped by good early rains and improving economics, South American soybean acreage and production should rise in 2009/10, a respected U.S. analyst said Thursday.
Dr. Michael Cordonnier, president of Soybean and Corn Advisor, projected 2009/10 South American soybean production at 125.0 million tonnes, up more than 30 percent from 95.8 million in 2008/09.
Cordonnier estimated Brazil's 2009/10 soybean crop at 62.5 million tonnes, above the U.S. Department of Agriculture's current estimate of 62.0 million.
For Argentina, Cordonnier estimated soybean output at 53.0 million tonnes, up sharply from 32.0 million in 2008/09 and above USDA's 2009/10 figure of 52.50 million tonnes.

Breaking News-RTRS-China purchases of South American soy to stay robust -survey

BEIJING, Oct 16 (Reuters) - Chinese companies are likely to maintain their strong interest in South American soybeans for shipment after April, although some crushers in the north may switch to domestic crops, according to an official survey.
"Domestic soybeans are available from October and some crushers in the north would focus their purchases on domestic crops and cut demand for imports," said the National Grain and Oils Information Centre (CNGOIC).

Trader's Highlight

DJI-NEW YORK, Oct 16 (Reuters) - World stocks fell and the euro retreated against the U.S. dollar on Friday as weak results from General Electric Co and Bank of America Corp dimmed confidence in a profit-driven economic recovery.

GE, the biggest U.S. conglomerate, reported a 42-percent drop in profit and Bank of America posted a quarterly loss, leading investors to rein in risk appetites whetted by strong JPMorgan Chase & Co results earlier in the week.

U.S. indexes dropped. The Dow industrials <.DJI> fell 67.03 points, or 0.67 percent, to 9,995.91. The Standard & Poor's 500 Index <.SPX> declined 8.88 points, or 0.81 percent, to 1,087.68, and the Nasdaq Composite Index <.IXIC> dropped 16.49 points, or 0.76 percent, to 2,156.80.

NYMEX-NEW YORK, Oct 16 (Reuters) - U.S. crude oil futures extended gains to a seventh straight session on Friday and closed at the highest level in a year, lifted by a late rally in gasoline futures and higher prices for heating oil.

The day's gains appeared to be a follow-through of Thursday's buying that was sparked by government data showing surprise drawdowns in gasoline and distillate stocks, which include heating oil and diesel.

On the New York Mercantile Exchange, November crude settled up 95 cents, or 1.22 percent, at $78.53 a barrel, the highest close since Oct. 14, 2008's $78.63. It
traded from $76.82 to $78.67, the highest intraday since $79.17 was hit on Oct. 15, 2008. For the week, the contract gained $6.76, or 9.42 percent.

CBOT-SOYBEANS - November down 5-1/2 cents at $9.77-1/2 a bushel. Better harvest weather for a few days weighing on soy futures but forecasts for wet and cool weather by mid-week underpinning the market.

CBOT-SOYOIL - December up 0.16 cent at 36.94. Choppy trade with early week rally in crude oil lending support.

FCPO-KUALA LUMPUR, Oct 16 (Reuters) - Malaysian palm oil futures jumped 3.2 percent on Friday, bouncing from one-week lows hit the previous day after crude oil rose to another one-year high above $78 a barrel.

The benchmark January contract on the Bursa Malaysia Derivative Exchange settled up 67 ringgit to 2,178 ringgit ($646.1).

REGIONAL EQUITIES-BANGKOK, Oct 16 (Reuters) - Southeast Asian stock markets ended on Friday mixed, with Singapore's index heavyweights surrendering recent gains while Thailand climbed more than three percent in a rebound from a two-day selloff. Elsewhere, Singapore <.FTSTI> ended down 0.2 percent, after a 1.64 percent rise over the past two days which pushed the market to a 13-month high.

Malaysia <.KLSE> gained 0.8 percent with Public Bank up 0.4 percent as broker TA raised its recommendation on the bank to buy from sell, citing an improved outlook following better-than-expected results.

Bursa Malaysia rose 0.5 percent after reporting higher third quarter net profit and forecast good outlook for the remainder of the year.

FCPO Weekly: Surviving at above 2,100 levels

Not much improvement as market is still surviving at above 2,100 levels. Thus, market may move in sideways manner unless it manage to break out from the upside resistance at 2,200 to 2,240. Downside support is maintain at 2108-2100 (unfilled gap left over since 11/10/2009)

DJI Weekly: May want to challenge 10,300 levels.

Market looks may continue its fighting spirit to challenge the next resistance at 10,300 levels. While, downside support is pegged at 9,400 levels.

FKLI Weekly: Upward posture maintaining well

Market non-stop hitting new fresh high had kept the upward momentum in a very good posture. Thus, we continue to look for the immediate upside target at 1270-1280 followed by 1300 in near term. Downside support is pegged at 1200-1210.

Trader's Comment: CPO futures reversed yesterday losses to end generally higher on stronger external factors.

CPO futures reversed yesterday losses to end generally higher on stronger external factors. A good recovery in overnight CBOT soyoil coupled with strong rally in NYMEX crude oil futures which up more than USD2 traded above USD77.00 a barrel. This had provided speculative buying sentiment. Asian time zone trading also in positive tone. This also had further boost the bull’s confident. New benchmark Jan10 was trading steadily thought out the day and surged to settle RM 67 higher at 2178 after trading in the range between 2138-2178 with total daily volume stood at 21,218 contracts changed hands. About 50% of the trades were switches mostly between Dec09 versus Jan10.

Breaking News-RTRS-China October soy imports seen at 2 mln T -MOFCOM

BEIJING, Oct 15 (Reuters) - China's Commerce Ministry
estimated the country's soy imports in October will continue to
fall for the fourth month in a row, with imports expected to
total 2 million tonnes, the lowest level in two years.

Trader's Highlight

DJI-NEW YORK, Oct 15 (Reuters) - Late-day strength drove U.S. stocks to 2009 highs on Thursday as rising oil prices lifted energy shares, eclipsing the banking sector's retreat after investors panned earnings from Goldman Sachs and Citigroup.

Indexes once again set highs for the year and the Dow held above the 10,000 mark after breaching it for the first time in a year on Wednesday.

While Goldman Sachs Group and Citigroup Inc's results exceeded forecasts, they failed to meet the lofty standard set on Wednesday by JPMorgan Chase & Co , the first major bank to report earnings.

The Dow Jones industrial average <.DJI> added 47.08 points, or 0.47 percent, to end at 10,062.94. The Standard & Poor's 500 Index <.SPX> gained 4.54 points, or 0.42 percent, to 1,096.56. The Nasdaq Composite Index <.IXIC> edged up 1.06 points, or
0.05 percent, to close at 2,173.29.

NYMEX-NEW YORK, Oct 15 (Reuters) - U.S. crude oil futures settled at a one-year high on Thursday, up for the sixth consecutive day, after government data showed heavy drawdowns in gasoline and distillate inventories last week, going against forecasts
for modest increases.

Traders shrugged off data from the U.S. Energy Information Administration showing a smaller-than-expected increase in crude oil supplies.

On the New York Mercantile Exchange ended up $2.40, or 3.19 percent at $77.58 a barrel, the highest since the $78.63 close on Oct. 14, 2008. It traded from $74.79 to $77.97, the highest intraday price since Oct. 15, 2008's $79.17 high.

CBOT-SOYBEANS - November up 1 cent at $9.94 a bushel. Prices rally to highest level since Sept. 3 due to slow harvest of U.S. soybean crop, weak dollar and gains in crude oil and equities markets.

CBOT-SOYOIL - October expired up 0.09 cent at 35.95 cents per lb. December up 0.12 cent at 36.18. Spillover support from gains in soy, higher crude oil and a weak dollar.

FCPO-KUALA LUMPUR, Oct 15 (Reuters) - Malaysian palm oil futures dropped as much as 2.4 percent to a near one-week low on Thursday with traders taking profits from a rally fuelled by crude oil and higher exports.

The benchmark December palm oil contract on the Bursa Malaysia Derivative Exchange dropped 52 ringgit to a session low of 2,108 ringgit ($627.9), a level unseen since Oct. 9, before settling at 2,110 ringgit.

REGIONAL EQUITIES-BANGKOK, Oct 15 (Reuters) - Most Southeast Asian stock markets advanced on Thursday with lenders DBS and United Overseas Bank leading Singapore to a 13-month high, while Thailand's index suffered its biggest drop in a year.

Malaysia's index <.KLSE> ended unchanged, falling back from a 16-month high touched earlier and weighed down by financial CIMB Group and telecoms Axiata Group , which each fell more than one percent.

Public Bank was flat. It rose earlier after the bank said third-quarter net profit rose a small 3.2 percent to 639 million ringgit.

FCPO Daily: Losing ground

Market is losing ground following a sharp fall after few attempts failed to break through the great wall at 2,200 levels. Meantime, we still maintain our view in sideways to higher. Violation of 2,100 levels may change the immediate technical outlook to sideways bias to lower move. Upside resistance remains at 2,196 to 2,200 followed by 2,240. Downside support is pegged at 2108-2085 (unfilled gap left over since 12/10/2009)

NYMEX Crude Daily: Maintaining its upward posture

Market strengthen further its upward posture following resistance at USD77.00 was tested. Thus, market may continue to move higher to challenge the next upside target at USD78.80 to USD80.00. While, downside support is pegged at USD74.00 to USD73.00.

CBOT Soyoil Daily: May challenge USD37.50 to USD38.00

Market continue to move higher and may challenge again the upside resistance at USD37.50-38.00. Downside support is pegged at USD35.90 to USD35.20.

FKLI Daily: Bull took a breathe

Profit taking activities were evident after prices hit the fresh high at 1257.5. However, immediate technical landscape maintain in positive mode. Thus, we continue to look for the upside target at 1270-1280 in near term. Downside support is adjusted to 1220-1210.

Trader's Comment: CPO futures surrendered all its earlier gains to ends broadly lower

CPO futures surrendered all its earlier gains to ends broadly lower on the back of weaken E-CBOT and profit taking after recent strong rebound. Benchmark Dec09 prices climbed to hit intra-day high at 2180 in the early session due to rally in NYMEX crude oil to trade above USD75 per barrel and better 1-15 export figures. However, the gains were trimmed and eventually surrender in the afternoon session on Dalian palm & soyoil futures begin to lose ground and E-CBOT both soybean & soyoil also weakening and trading in negative territory. These prompted profit taking coupled with long liquidation sent Benchmark Dec09 prices under pressure through out the afternoon session. Prices tumbled to hit intra-day low at 2108 before it settling RM 50 lower at 2110. Total daily volume moderate with 12,804 contracts changed hands.

Breaking News- RTRS-US soybean crush 107.379 mln bu in September-NOPA

U.S. SEPT SOYBEAN CRUSHINGS 107.379 MLN BU VS AUG 112.617 MLN--NOPA
U.S. SEPT SOYMEAL EXPORTS 328,768 TONS VS AUG 260,829 TONS--NOPA
U.S. SEPT SOYOIL STOCKS 2.262 BLN LBS VS AUG 2.520 BLN--NOPA

FCPO Daily: Still facing tough resistance at 2200 levels.

Market still facing tough resistance at 2200 levels following prices still not manage to break through. However, immediate daily technical outlook remains positive despite prices losing ground for consecutive two trading days. We maintain our view sideways to higher in near term market with upside target maintain at 2200-2240 levels. Meanwhile, downside support is maintain at 2118-2085 (gap left over on 12/10/2009)

NYMEX Crude: Rally likely to continue

Market breached the overhead resistance at USD75 and close firm had strengthen further the overall immediate technical landscape to bias upside potential. Thus, market may want to challenge the next upside target at USD77.00 to 78.80. While, downside support is pegged at USD73.00 to USD70.00.

DJI Daily: 10,000 violated, more upside room to come

Glad to see that market manage to stay firm at the overhead resistance at 10,000 mark. Hence, market may want to challenge 10,300 levels in near term with maintain the current upward spirit. While, downside support is pegged at 9,800-9600 levels.

FKLI Daily: Bulls won the battle

Cheers...as bulls continue won the battle following 1250 levels was violated convincingly. Thus, we are now looking for the upside target at 1270-1280 in near term. Downside support is adjusted to 1220-1210.

Trader's Comment: Lack of follow through buying set prices to end at day low

CPO futures finishes off the high after setting intra-day high in late trading but it ended and settled at day low on lack of follow through buying interest. Earlier market was trading in a tight range between 2177 to 2165 through out most of the day before late covering activities emerged and pushed benchmark Dec09 prices surged to intra-day high at 2196. However, lack of follow through buying coupled with intra-day profit taking brought prices down to settle RM 3 higher at 2160. Recently, FCPO prices rallies were due to NYMEX crude oil prices which has been steadily trade between USD70.00 to USd75.00 per barrel and higher soyoil prices.