DJ MARKET TALK: BMD CPO Futures Off Highs Midday;Supply Rise Weighs

[Dow Jones] BMD CPO futures off highs midday; may give up gains in afternoon session on profit-taking, traders say. "Prices couldn't break resistance at MYR2,557/ton in early trade, and this may prompt investors to liquidate their positions later in the day," says Malaysia-based trading executive; adds supply fundamentals likely to weigh as March CPO output improved. CPO market likely to remain rangebound between MYR2,520-MYR2,600/ton as investors to focus on March 1-31 palm oil exports as figures "should provide a better gauge whether (export) demand could put further pressure on palm inventories at the end of March," says analyst at Kuala Lumpur-based Kenanga Deutsche Futures. Benchmark BMD June CPO futures trading MYR6 higher midday at MYR2,540/ton, off intraday high of MYR2,557/ton.

(shie-lynn.lim@dowjones.com)

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DJ MARKET TALK: BMD CPO Futures Up; Limited Upside; MYR2,518 Support

[Dow Jones] BMD CPO futures higher on short covering as crude oil, soyoil prices rise during Asian hours, say traders. But upside likely limited as Malaysia's CPO output in March expected to rise 7%-10% on month, says trading executive in Kuala Lumpur; adds market likely to stay in range ahead of USDA
planting report Wednesday. "The current rise in CPO prices may be short-lived...a downside correction may drag prices to test support at MYR2,518/ton, then MYR2,500 today," says analyst in Singapore.

(shie-lynn.lim@dowjones.com)

Call us in Kuala Lumpur : +(603) 2026 1233;

DJ MARKET TALK: India Soybean Futures Likely Up On Global Cues

0345 GMT [Dow Jones] India April NCDEX soybean futures likely to extend gains, tracking firm global markets; eCBOT soybean up 0.5%, BMD palm oil futures 0.4% higher. "But a record South American soybean crop and a pickup in local rapeseed arrivals will limit the upside," says Indore-based trader;
Brazil, Argentina soybean harvest in progress; India's rapeseed output for crop year through September likely 6.32 million tons vs 6.20 million tons year earlier. Trader expects soybean in INR2,028-INR2,070/100 kg range, soyoil in INR452-INR458/10 kg band; soybean last closed 0.9% higher at INR2,048.50,
soyoil down 0.4% at INR454.75.

(ravi.bhushan@dowjones.com)
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