Market momentum remained weak. We look for the immediate support at 1331-1329 follow by 1252-1233. While, immediate upside resistance is at 1650-1666 followed by 1690-1693.
Friday, October 31, 2008
FCPO Weekly: Downtrend remains intact
Market momentum remained weak. We look for the immediate support at 1331-1329 follow by 1252-1233. While, immediate upside resistance is at 1650-1666 followed by 1690-1693.
FKLI Weekly: Bear take a short break
Market rebounded to end good for the week close. However, bear looks like just taking a short break and may awake anytime as downtrend remained intact. As for now, we continue to look for the support at 795-800 mark. For upside, immediate resistance is at 870-872.
KLSE Weekly: Good ending for the week
Good ending for the week with a long white candle printed. Nevertheless, the overall technical landscape remained clouded in bearish atmosphere. As for now, we pegged the immediate support at 790-800 mark. For upside, immediate resistance is at 885-890.
Breaking News-RTRS-INDONESIA SAYS RAISES MINIMUM REFERENCE PRICE FOR PALM OIL EXPORT TAX TO $700/TONNE FROM $550
JAKARTA, Oct 31 (Reuters) - Indonesia has raised the minimum reference price for palm oil export tax to $700 a tonne from $550, a trade ministry official said on Friday.
Breaking News-RTRS-US soy oil stocks 2.471 bln lbs in Sept - Census
WASHINGTON, Oct 30 (Reuters) - U.S. soybean oil stocks
totaled 2.471 billion lbs in September, compared to 2.551
billion lbs in August, the U.S. Census Bureau said on
Thursday.
totaled 2.471 billion lbs in September, compared to 2.551
billion lbs in August, the U.S. Census Bureau said on
Thursday.
RTRS-UPDATE 1-Iceland bank crisis could cost 85 pct of GDP
REYKJAVIK, Oct 30 (Reuters) - Iceland's Prime Minister Geir Haarde said on Thursday the total cost of the country's banking crisis could amount to 1.1 trillion Icelandic crowns ($9.40 billion), or 85 percent of 2007 gross domestic product.
Breaking News-RTRS-US advance Q3'08 GDP reading comes in at -0.3%
The US advance Q3'08 GDP reading comes in at -0.3% vs the +2.8% increase
seen in the Q2, slightly above market expectations for -0.5%. GDP deflator
comes in at +4.1% vs. 1.3% for Q2. Consumer spending dropped to -3.1% vs. +1.2%
for Q2 and durables dropped to-14.1% vs. -2.8% for Q2.Q3 GDP decline is the
largest since Q3'00(-1.4%). Core PCE rises to +2.9 vs. 2.2%, above expected.
PCE Price index rise of 5.4% for Q3 is the largest since Q1 1990 (+6.0%). Q3
disposable income drops to -8.7%, the biggest decline since quarterly record
started in 1947.
seen in the Q2, slightly above market expectations for -0.5%. GDP deflator
comes in at +4.1% vs. 1.3% for Q2. Consumer spending dropped to -3.1% vs. +1.2%
for Q2 and durables dropped to-14.1% vs. -2.8% for Q2.Q3 GDP decline is the
largest since Q3'00(-1.4%). Core PCE rises to +2.9 vs. 2.2%, above expected.
PCE Price index rise of 5.4% for Q3 is the largest since Q1 1990 (+6.0%). Q3
disposable income drops to -8.7%, the biggest decline since quarterly record
started in 1947.
Trader's Highlight
DJI-NEW YORK, Oct 30 (Reuters) - Stocks rallied around the world on Thursday on optimism that interest rate cuts by the U.S. Federal Reserve and other central banks will ease a looming global recession, even as oil prices fell on concerns about slowing demand.
U.S. gross domestic product shrank at a 0.3 percent annual rate in the third quarter as the sharpest pullback by consumers since 1980 overwhelmed the benefit from ramped-up government spending, the U.S. Commerce Department reported.
In Europe, German unemployment fell more sharply than expected in October, pushing the jobless rate down to a new 16-year low of 7.5 percent.
The Dow Jones industrial average <.DJI> closed up 19164 points, or 2.13 percent, at 9,182.60. The Standard & Poor's 500 Index <.SPX> was up 23.80 points, or 2.56 percent, at 953.89. The Nasdaq Composite Index <.IXIC> was up 41.31 points, or 2.49 percent, at 1,698.52.
NYMEX-NEW YORK, Oct 30 (Reuters) - U.S. crude futures ended lower on Thursday as weak third-quarter economic data rekindled demand worries.
On the New York Mercantile Exchange, December crude settled down $1.54, or 2.28 percent, at $65.96 a barrel, trading from $64.04 to $70.60.
CBOT-SOYBEANS - November off 3-1/4 cents at $9.34 per bushel; January off 4 cents at $9.43.
Pressure from firm dollar and drop in crude oil. Market underpinned by large export sales, talk of fund buying and bullish moves in options, including call buying.
CBOT-SOYOIL - December up 0.15 cent at 34.48 cents per lb. Following soybeans, with added pressure from crude oil.
U.S. Census Bureau reported U.S. Sept soyoil stocks at 2.471 billion lbs, compared to preliminary estimate for 2.527 billion.
FCPO-JAKARTA, Oct 30 (Reuters) - Malaysian palm futures closed higher on Thursday after crude oil hit $70 a barrel in Asian trade, traders said.
The market also rallied ahead of a government announcement on replanting plans, aimed at helping to boost the palm oil price.
The benchmark January contract on the Bursa Malaysia Derivatives Exchange rose 125 ringgit, or 8.71 percent, to 1,560 ringgit ($441) a tonne. Contracts for other traded months rose between 65 ringgit and 142 ringgit, with overall volume of 15,951 lots of 25 tonnes each.
REGIONAL EQUITIES-SINGAPORE, Oct 30 (Reuters) - Singapore stocks led the surge in Southeast Asian equity markets on Thursday, with financials in the spotlight, as investors cheered the Federal Reserve's rate cut and a slew of government efforts to boost bank liquidity.
The benchmark Straits Times Index <.FTSTI> closed 7.8 percent higher. Elsewhere, Thai shares <.SETI> climbed 6.3 percent, Indonesian stocks <.JKSE> gained 5.4 percent, and Philippine's benchmark index <.PSI> added 4.7 percent.
U.S. gross domestic product shrank at a 0.3 percent annual rate in the third quarter as the sharpest pullback by consumers since 1980 overwhelmed the benefit from ramped-up government spending, the U.S. Commerce Department reported.
In Europe, German unemployment fell more sharply than expected in October, pushing the jobless rate down to a new 16-year low of 7.5 percent.
The Dow Jones industrial average <.DJI> closed up 19164 points, or 2.13 percent, at 9,182.60. The Standard & Poor's 500 Index <.SPX> was up 23.80 points, or 2.56 percent, at 953.89. The Nasdaq Composite Index <.IXIC> was up 41.31 points, or 2.49 percent, at 1,698.52.
NYMEX-NEW YORK, Oct 30 (Reuters) - U.S. crude futures ended lower on Thursday as weak third-quarter economic data rekindled demand worries.
On the New York Mercantile Exchange, December crude
CBOT-SOYBEANS - November
Pressure from firm dollar and drop in crude oil. Market underpinned by large export sales, talk of fund buying and bullish moves in options, including call buying.
CBOT-SOYOIL - December
U.S. Census Bureau reported U.S. Sept soyoil stocks at 2.471 billion lbs, compared to preliminary estimate for 2.527 billion.
FCPO-JAKARTA, Oct 30 (Reuters) - Malaysian palm futures closed higher on Thursday after crude oil hit $70 a barrel in Asian trade, traders said.
The market also rallied ahead of a government announcement on replanting plans, aimed at helping to boost the palm oil price.
The benchmark January contract
REGIONAL EQUITIES-SINGAPORE, Oct 30 (Reuters) - Singapore stocks led the surge in Southeast Asian equity markets on Thursday, with financials in the spotlight, as investors cheered the Federal Reserve's rate cut and a slew of government efforts to boost bank liquidity.
The benchmark Straits Times Index <.FTSTI> closed 7.8 percent higher. Elsewhere, Thai shares <.SETI> climbed 6.3 percent, Indonesian stocks <.JKSE> gained 5.4 percent, and Philippine's benchmark index <.PSI> added 4.7 percent.
DJI Daily: in range bound mode
DJI traded in range trading and consolidate phase looks may extend in near term.We continue to look for the support at 8143-8187. For upside, resistance is at 9430-9448.
Thursday, October 30, 2008
FCPO Daily: ended up off from 10 % limit up
Market ended up off from 10% limit up level. A white candle printed had helped to neutralise a little the market downside momentum. Looks may continue its consolidation phase after the strong sell down. Currently, we look for the immediate upside resistance at 1586-1593 followed by 1635-1639 (gap left over since 21st Oct, 2008). While, immediate support is at 1491-1441 (gap left over today).
Trader's Comment: CPO futures extended its gain as crude oil surged further at Asian trading time
CPO futures extended its gain as crude oil surged further at Asian trading time. Benchmark Jan09 initially open RM85 higher at 1520, as overnight crude oil rallied after US dollar weakened following interest rate cut by Federal Reserve. CPO prices then fell to the intra day low of 1491, failed in its attempt to close yesterday’s left over gap. News that crude oil extended its rally in Asian time zone and hit $70 a barrel had also help lifted the bullish sentiment in local commodities market. Benchmark Jan09 continue to rise further until it hit the price of daily 10% limit at 1578, before it settled at 1560, up RM 125. Beside the crude oil factor, market is still awaiting end month export figures by private cargo surveyor which is scheduled to release tomorrow and heard that market talk of end month export figure is roughly at 1.3 million, up about 8% compare the same period of last month. Daily volume remains steady, with 15,951 contracts changed hands.
Breaking News-RTRS-Malaysia to spend $57mln as palm replanting incentive
-RTRS-MALAYSIAN PM ABDULLAH SAYS TO SPEND 200 MLN RGT AS INCENTIVE FOR REPLANTING OIL PALM
-RTRS-MALAYSIAN PM - TO START USING BIODIESEL FOR GOVT VEHICLES FROM FEB 2009
-RTRS-MALAYSIAN PM SAYS PALM OIL OUTPUT TO FALL BY 700,000 TONNES A YR DURING REPLANTING
-RTRS-MALAYSIAN PM SAYS PLANS TO TURN 500,000 TONNES OF PALM OIL A YEAR INTO BIODIESEL BY EARLY 2010
-RTRS-MALAYSIAN PM - TO START USING BIODIESEL FOR GOVT VEHICLES FROM FEB 2009
-RTRS-MALAYSIAN PM SAYS PALM OIL OUTPUT TO FALL BY 700,000 TONNES A YR DURING REPLANTING
-RTRS-MALAYSIAN PM SAYS PLANS TO TURN 500,000 TONNES OF PALM OIL A YEAR INTO BIODIESEL BY EARLY 2010
FKLI Daily: bear taking a breathe
Bear took a breathe due to technically oversold. A long white candle printed had slow down a little the market downside movement. Nevertheless, overall technical picture remained bearish. As for now, we look for the resistance at 871.5-883 and support is pegged at 816.5-803.5.
KLSE Daily: covered full gap with double digit up
Market fully covered the upside gap left over since 24th Oct, 2008 at 850-853 with double digit good ending. Market may continue its consolidation phase after the strong sell down as overall technical landscape is remained in bearish atmosphere. For now, we look for the resistance and support at 880-890 and 821 level respectively.
FCPO Hourly: A big gap up
A big gap up after the opening bell saw prices steady at 1500 mark. Looks may look for a range to trade in near term. For upside, immediate resistance is at 1556-1591. For downside, support is at 1509-1435 (morning gap left over).
FKLI Hourly: technical rebound
FKLI in rebounding mode after the recent sell down. We now look for the upside resistance at 859.5 followed by 871.5. For downside, support at 830.5-827 followed by 816.5.
KLSE Hourly: covering upside gap
Market intend to cover its upside gap left over since 24th Oct, 2008 at 850-853. While, immediate support is at 821.
Breaking News-RTRS-US Fed launches four new currency swap lines
WASHINGTON, Oct 29 (Reuters) - The Federal Reserve on Wednesday extended U.S. dollar liquidity aid beyond traditional markets, opening four new $30 billion currency swap lines with Brazil, Mexico, South Korea and Singapore.
Breaking News-RTRS-TAKE A LOOK-Fed cuts benchmark rate 1/2 point to 1 pct
The U.S. Federal Reserve on Wednesday cut its benchmark federal funds rate
by 50 basis points to 1 percent to prevent a widening credit crisis from
tipping the United States into a deep and prolonged recession.
by 50 basis points to 1 percent to prevent a widening credit crisis from
tipping the United States into a deep and prolonged recession.
Breaking News-RTRS-EU biofuel data change angers environmentalists
By Pete Harrison
BRUSSELS, Oct 29 (Reuters) - European biofuels could receive a boost from a change in the way the European Union calculates their impact on the environment, a document shows, angering environmentalists who think they do more harm than good.
The European Council document seen by Reuters on Wednesday also annoyed European biodiesel producers who see a bias towards bioethanol.
BRUSSELS, Oct 29 (Reuters) - European biofuels could receive a boost from a change in the way the European Union calculates their impact on the environment, a document shows, angering environmentalists who think they do more harm than good.
The European Council document seen by Reuters on Wednesday also annoyed European biodiesel producers who see a bias towards bioethanol.
Trader's Comment:
DJI-NEW YORK, Oct 29 (Reuters) - U.S. stocks fell on Wednesday as a big rally faltered in the last minutes of trading on worry about the weakening corporate profit picture after a news report raised questions about General Electric's earnings outlook.
In a move that has been the trademark of the market's volatility ever since Lehman Brothers' bankruptcy filing in mid-September, the Dow plunged more than 300 points in the last 12 minutes, dashing prospects for the first back-to-back gains in a month.
Aside from the GE news, reported by Dow Jones with less than 15 minutes left in the session, traders said hedge funds and mutual funds were dumping stocks to raise cash to repay clients and lenders, while other investors were eager to lock in some profit from Tuesday's huge rally.
The Dow Jones industrial average <.DJI> fell 74.16 points, or 0.82 percent, to close at 8,990.96. The Standard & Poor's 500 Index <.SPX> declined 10.42 points, or 1.11 percent, to 930.09. But the Nasdaq Composite Index <.IXIC> rose 7.74 points, or 0.47 percent, to 1,657.21.
NYMEX-NEW YORK, Oct 29 (Reuters) - U.S. crude oil futures rose further in post-settlement trading on Wednesday as the U.S. dollar extended losses against the euro after U.S. stocks rallied after the Federal Reserve cut interest rates.
In late trading on the New York Mercantile Exchange, December crude hit a session high of $69.24. It earlier settled up $4.77, or 7.6 percent. at $67.50 a barrel, after trading from $63.65 to $68.91.
Prices have bounced from Monday's $61.30 intraday low, which was the weakest since $60.68 was struck on May 9, 2007.
CBOT-SOYBEANS - November up 58-1/2 cents at $9.37-1/4 per bushel; January up 59 cents at $9.47.
Led by crude oil and weak dollar with additional support from stabilizing stock markets. Bullish moves in soy options add strength, with firms selling puts and buying calls. Weak dollar also supportive as market awaited expected interest rate cut by the U.S. Fed.
CBOT-SOYOIL - December up 2.45 cents at 34.33 cents per lb. Front months rose the 2.5-cent limit earlier on soaring crude oil and higher soybeans.
FCPO-JAKARTA, Oct 29 (Reuters) - Malaysian palm futures finished lower on Wednesday amid worries that buyers will seek palm oil from rival Indonesia after Jakarta scrapped a tax on palm oil exports, traders said.
The benchmark January contract on the Bursa Malaysia Derivatives Exchange finished 24 ringgit lower, or 1.64 percent, at 1,435 ringgit ($401) a tonne.
The January contract hit a low of 1,331 ringgit per tonne on Tuesday, the weakest since mid-August 2005.
REGIONAL EQUITIES-SINGAPORE, Oct 29 (Reuters) - Singapore stocks rose 0.3 percent on Wednesday, but stayed close to a 4-½ year low as investor fears the worsening financial crisis will cut company profits capped gains in blue chips such as SingTel.
The benchmark Straits Times Index <.FTSTI> closed up 4.71 points at 1,671.20 points, after touching its lowest since July 2003 on Tuesday. Elsewhere, Indonesian stocks <.JKSE> added 0.2 percent, and Philippine shares <.PSI> climbed 4.5 percent. Malaysian shares <.KLSE> fell 0.4 percent, and Thai stocks
<.SETI> dropped 3.5 percent.
In a move that has been the trademark of the market's volatility ever since Lehman Brothers' bankruptcy filing in mid-September, the Dow plunged more than 300 points in the last 12 minutes, dashing prospects for the first back-to-back gains in a month.
Aside from the GE news, reported by Dow Jones with less than 15 minutes left in the session, traders said hedge funds and mutual funds were dumping stocks to raise cash to repay clients and lenders, while other investors were eager to lock in some profit from Tuesday's huge rally.
The Dow Jones industrial average <.DJI> fell 74.16 points, or 0.82 percent, to close at 8,990.96. The Standard & Poor's 500 Index <.SPX> declined 10.42 points, or 1.11 percent, to 930.09. But the Nasdaq Composite Index <.IXIC> rose 7.74 points, or 0.47 percent, to 1,657.21.
NYMEX-NEW YORK, Oct 29 (Reuters) - U.S. crude oil futures rose further in post-settlement trading on Wednesday as the U.S. dollar extended losses against the euro after U.S. stocks rallied after the Federal Reserve cut interest rates.
In late trading on the New York Mercantile Exchange, December crude
Prices have bounced from Monday's $61.30 intraday low, which was the weakest since $60.68 was struck on May 9, 2007.
CBOT-SOYBEANS - November
Led by crude oil and weak dollar with additional support from stabilizing stock markets. Bullish moves in soy options add strength, with firms selling puts and buying calls. Weak dollar also supportive as market awaited expected interest rate cut by the U.S. Fed.
CBOT-SOYOIL - December
FCPO-JAKARTA, Oct 29 (Reuters) - Malaysian palm futures finished lower on Wednesday amid worries that buyers will seek palm oil from rival Indonesia after Jakarta scrapped a tax on palm oil exports, traders said.
The benchmark January contract
The January contract hit a low of 1,331 ringgit per tonne on Tuesday, the weakest since mid-August 2005.
REGIONAL EQUITIES-SINGAPORE, Oct 29 (Reuters) - Singapore stocks rose 0.3 percent on Wednesday, but stayed close to a 4-½ year low as investor fears the worsening financial crisis will cut company profits capped gains in blue chips such as SingTel.
The benchmark Straits Times Index <.FTSTI> closed up 4.71 points at 1,671.20 points, after touching its lowest since July 2003 on Tuesday. Elsewhere, Indonesian stocks <.JKSE> added 0.2 percent, and Philippine shares <.PSI> climbed 4.5 percent. Malaysian shares <.KLSE> fell 0.4 percent, and Thai stocks
<.SETI> dropped 3.5 percent.
DJI Daily: big rally faltered in the last minutes
DJI losing ground as big rally faltered in the last minutes. Market hits the resistance at 9284-9300 but unable to hold. Looks may consolidate and look for a range to trade in near term. We now look for the support at 8143-8187. For upside, resistance is at 9430-9448.
Wednesday, October 29, 2008
FKLI Daily: disappointed 'bull' rebound
Disappointed bull rebound as the rebound was really short lived. We continue to look for the upside resistance at 871.5-883. While, support pegged at 803.5.
KLSE Daily: remains cloudy mood
Market atmosphere remained cloudy following market failed to sustain after covered partial of the upside gap. Looks may entering a consolidation zone in near term. We now continue to look at 800 mark support. For upside, resistance is at 850-853 (gap left over since 24th Oct, 2008).
FCPO Daily: consolidation
Market stuck in range trading looks may extend its consolidation mode in near term. We now look for the support and resistance at 1331 and 1459-1475 level respectively.
Trader's Comment: The “Bull’s party” of CPO was spoiled
The “Bull’s party” of CPO was spoiled by disappointing closed of overnight CBOT and zero export duty by Indonesia government. Benchmark Jan09 open RM31 lower at 1428, tracking lower soybean prices and disappointing closed of soy oil which only up marginal compared to more than 150pts up during Asian time zone yesterday. News that Indonesian government’s decision to scrap the export duty to zero added onto the selling pressure. Benchmark Jan09 prices has slide to hit intra day low and ends at 1399 by midday. Prices were hovering mostly between 1395-1430 before late covering activities emerge and sent prices to settle at RM24 lower at 1435.
Breaking News-RTRS-INDONESIA PALM OIL ZERO EXPORT TAX MAY BE EFFECTIVE UNTIL YEAR END-GOVT OFFICIAL
JAKARTA, Oct 29 (Reuters) - The Indonesian government's decision to remove the tax on palm oil exports may stay in place until the end of this year, a government official said on Wednesday.
Breaking News-RTRS-INDONESIA TO IMPOSE ZERO PCT EXPORT TAX ON CRUDE PALM OIL - FIN MIN
JAKARTA, Oct 28 (Reuters) - Indonesia's finance minister said on Tuesday that the export tax on crude palm oil had been cut to zero percent, as part of a package of measures intended to shore up confidence in the financial markets.
Breaking News-RTRS-UPDATE 3-BOJ considering rate cut - source
TOKYO, Oct 29 (Reuters) - The Bank of Japan will consider cutting interest rates at a policy meeting later this week, but the bank will watch market conditions before making a final decision, a source informed on the matter said on Wednesday.
A reduction in interest rates is seen coming up on the table when the BOJ's policy board meets on Friday.
A reduction in interest rates is seen coming up on the table when the BOJ's policy board meets on Friday.
Trader's Highlight
DJI-NEW YORK, Oct 28 (Reuters) - Wall Street marked its second-best day ever on Tuesday as investors, convinced that central banks worldwide will cut rates even more, scooped up stocks that had been driven down to their lowest prices in more than five years.
A big catalyst for the late-day surge was a huge drop in the Japanese yen after a news report that the Bank of Japan may cut interest rates later this week.
The Federal Reserve is expected to cut its benchmark fed funds rate by at least 50 basis points on Wednesday when it concludes a two-day meeting that began this afternoon.
The Dow Jones industrial average <.DJI> jumped 889.35 points, or 10.88 percent, to 9,065.12. The Standard & Poor's 500 Index <.SPX> surged 91.59 points, or 10.79 percent, to 940.51. The Nasdaq Composite Index <.IXIC> ran up 143.57 points, or 9.53 percent, to 1,649.47.
NYMEX-NEW YORK, Oct 28 (Reuters) - U.S. crude futures ended lower on Tuesday as plunging consumer confidence outweighed a rebounding stock market and OPEC officials talked of more action to stem oil's steep price slide.
On the New York Mercantile Exchange, December crude settled down 49 cents, or 0.78 percent, at $62.73 a barrel, trading from $61.61 to $65.20. Monday's $61.30 intraday low was the weakest since $60.68 was struck on May 9, 2007.
CBOT-SOYBEANS - November down 14-1/4 cents at $8.78-3/4 per bushel; January down 9-1/2 cents at $8.88.
Pressured by profit taking after initial rally on USDA's corrected October crop report that showed lowered acreage and ending stocks. Talk of farmer selling also weighed.
USDA corrected the October crop report. Soy harvested acreage for 2008 lowered to 74.4 million from previous 75.5 million, crop production lowered to 2.938 billion from previous 2.983 billion and ending stocks for 2008/09 lowered to 205
million bushels from 220 million.
SOYOIL - December up 0.16 cent at 31.88 cents per lb. Fund buying provided support.
FCPO-JAKARTA, Oct 28 (Reuters) - Malaysian palm futures recouped losses to finish 5 percent higher on Tuesday, after hitting a fresh three-year low earlier, supported by a rebound in crude oil price, traders said.
The rally in Asian equity markets and soybean oil prices also helped boost sentiment, they said.
Palm prices could extend their rebound on Wednesday if Wall Street finishes higher on Tuesday, a key factor that will set the tone for trading in Asian markets, said a trader at a Kuala Lumpur-based brokerage firm.
The benchmark January contract on the Bursa Malaysia Derivatives Exchange rose 69 ringgit, or 4.96 percent, to 1,459 ringgit ($377) per tonne, coming off a low of 1,331 ringgit, the weakest since mid-August 2005.
Other traded months rose between 4 ringgit and 61 ringgit. The overall volume stood at 17,189 lots of 25 tonnes each.
A big catalyst for the late-day surge was a huge drop in the Japanese yen after a news report that the Bank of Japan may cut interest rates later this week.
The Federal Reserve is expected to cut its benchmark fed funds rate by at least 50 basis points on Wednesday when it concludes a two-day meeting that began this afternoon.
The Dow Jones industrial average <.DJI> jumped 889.35 points, or 10.88 percent, to 9,065.12. The Standard & Poor's 500 Index <.SPX> surged 91.59 points, or 10.79 percent, to 940.51. The Nasdaq Composite Index <.IXIC> ran up 143.57 points, or 9.53 percent, to 1,649.47.
NYMEX-NEW YORK, Oct 28 (Reuters) - U.S. crude futures ended lower on Tuesday as plunging consumer confidence outweighed a rebounding stock market and OPEC officials talked of more action to stem oil's steep price slide.
On the New York Mercantile Exchange, December crude
CBOT-SOYBEANS - November
Pressured by profit taking after initial rally on USDA's corrected October crop report that showed lowered acreage and ending stocks. Talk of farmer selling also weighed.
USDA corrected the October crop report. Soy harvested acreage for 2008 lowered to 74.4 million from previous 75.5 million, crop production lowered to 2.938 billion from previous 2.983 billion and ending stocks for 2008/09 lowered to 205
million bushels from 220 million.
SOYOIL - December
FCPO-JAKARTA, Oct 28 (Reuters) - Malaysian palm futures recouped losses to finish 5 percent higher on Tuesday, after hitting a fresh three-year low earlier, supported by a rebound in crude oil price, traders said.
The rally in Asian equity markets and soybean oil prices also helped boost sentiment, they said.
Palm prices could extend their rebound on Wednesday if Wall Street finishes higher on Tuesday, a key factor that will set the tone for trading in Asian markets, said a trader at a Kuala Lumpur-based brokerage firm.
The benchmark January contract
Other traded months rose between 4 ringgit and 61 ringgit. The overall volume stood at 17,189 lots of 25 tonnes each.
DJI Daily: best day ever
DJI soar with its best day ever. Support at 7882 remained firm. For upside, resistance is at 9284-9300.
Tuesday, October 28, 2008
FKLI Daily: technically oversold
Market is technically oversold and may due for a short term technical rebound following a white candle printed. We now look for the upside resistance at 871.5-883. While, support is pegged at 803.5.
KLSE Daily: covering upside gap
Market looks may challenge to cover its upside gap left over since 24th Oct, 2008 at 837-853.800 mark support remained good.
FCPO Daily: recover from 3-year low
FCPO recovered and rebounded from 3-year low of 1331. Market looks may want to have a short term technical rebound following it has been oversold. We now look for the support and resistance at 1331 and 1542-1556 level respectively.
Trader's Comment: CPO futures recovered from fresh year low to end generally higher
CPO futures recovered from fresh year low to end generally higher on the back of sharp rebound in Asian stock market. Benchmark Jan09 open RM40 higher at 1430, after overnight CBOT soy complex rebounded from a technically oversold territory with a strong cash soy market. Nevertheless, crude oil trading in Asian time did not follow the rebound, while investors were still worried that crude oil prices may break below $60. CPO prices then fall and hit fresh year low at 1331, which is also the 3-year low. After lunch break, regional equity market encounter a strong recovery and this help improve the sentiment of local commodity market. Benchmark Jan09 open higher during afternoon session, and prices rally higher to settle at day high of 1459,up RM 69. Strong gains in e-CBOT also helped to lift the market sentiment. Rival soy oil up about 150 pts while soy bean higher by 50ct. Daily volume remain steady, with total 17,189 contracts changed hands.
Breaking News-RTRS-China purchases of soy leads crushers to buy imports
BEIJING, Oct 28 (Reuters) - China has begun purchasing domestic soybeans for state reserves in an effort to boost local prices and farmers' incomes, but traders said that has led crushers to seek out cheaper imports.
Chinese buyers have booked 1 to 1.5 million tonnes of U.S soybeans over the past week, almost four times the week before last, traders estimated on Tuesday.
"The import growth was because of expensive domestic soybeans," said one industry analyst.
Chinese buyers have booked 1 to 1.5 million tonnes of U.S soybeans over the past week, almost four times the week before last, traders estimated on Tuesday.
"The import growth was because of expensive domestic soybeans," said one industry analyst.
Breaking News-RTRS-UPDATE 1-Malaysia rates left unchanged, c.bank ready to act
KUALA LUMPUR, Oct 24 (Reuters) - Malaysia's central bank left its key interest rate unchanged on Friday, as expected, but signalled it was ready to ease policy to shore up its trade-reliant economy as the global outlook deteriorates.
Bank Negara Malaysia kept its overnight policy rate unchanged at 3.50 percent, the same level it has been at since April 2006.
Bank Negara Malaysia kept its overnight policy rate unchanged at 3.50 percent
Breaking News-RTRS-Asian palm to languish in the next 6 mths -analyst
KUALA LUMPUR, Oct 27 (Reuters) - Malaysian palm futures are unlikely to recover in the next six months, despite a strong chance the government will launch biofuel mandates and other steps this week to soak up record stockpiles, an analyst said on Monday.
Palm oil, down nearly 70 percent from a record of 4,486 ringgit in March, will struggle with rising output from top producers Indonesia and Malaysia amid a global financial crisis that is sucking funds away from commodities, Standard Chartered softs analyst Abah Ofon said.
Palm oil, down nearly 70 percent from a record of 4,486 ringgit in March, will struggle with rising output from top producers Indonesia and Malaysia amid a global financial crisis that is sucking funds away from commodities, Standard Chartered softs analyst Abah Ofon said.
Breaking News-RTRS-Slumping prices slow Pakistani palm oil imports
ISLAMABAD, Oct 24 (Reuters) - Slumping global palm oil prices and weaker domestic economic growth have led to a slowdown in Pakistani purchases even though needs for November-December have yet to covered, a prominent trader said.
"Pakistan is slowly buying but it's not taking big positions because of dipping prices," Rasheed Janmohammad, deputy chairman of the Pakistan Edible Oil Refiners Association, told Reuters on Friday.
"Pakistan is slowly buying but it's not taking big positions because of dipping prices," Rasheed Janmohammad, deputy chairman of the Pakistan Edible Oil Refiners Association, told Reuters on Friday.
Breaking News-RTRS-Palm oil's discount could spur demand in Europe
AMSTERDAM, Oct 24 (Reuters) - Palm oil's discount to other vegetable oils could attract buyers in Europe but high stock levels, a strong dollar and general financial turmoil are likely to keep prices under pressure, market experts said.
"The only bullish aspect of palm oil at the moment is its continued discount to other oils. When the spread becomes more than $200 a tonne it's bullish for palm as people then turn to the cheapest product," a European vegetable oils trader said.
"The only bullish aspect of palm oil at the moment is its continued discount to other oils. When the spread becomes more than $200 a tonne it's bullish for palm as people then turn to the cheapest product," a European vegetable oils trader said.
Breaking News-RTRS-Soy, palm oil may go from German biofuel blend
HAMBURG, Oct 24 (Reuters) - Soyoil and palm oil may be completely removed from biofuel blending with fossil fuels under new German government proposals, Germany's vegetable oil mills industry association said on Friday.
On Wednesday, the German government cabinet approved a draft law on biofuel blend levels in fossil fuels for 2009 which included halting use of biofuels produced from palm and soyoil in the country's blending quota unless they have certificates showing they have been produced using sustainable agriculture.
On Wednesday, the German government cabinet approved a draft law on biofuel blend levels in fossil fuels for 2009 which included halting use of biofuels produced from palm and soyoil in the country's blending quota unless they have certificates showing they have been produced using sustainable agriculture.
Trader's Highlight
DJI-NEW YORK, Oct 27 (Reuters) - U.S. stocks closed at their lowest levels in 5-1/2 years on Monday, extending a global sell-off as worry about the severity of a global recession and the bleak outlook for profits gripped investors.
Trading was volatile and volume was light, with stocks falling sharply in the last half hour of trading. With just four days left in October, the S&P 500 is on track for its worst month ever in the post-World War Two period.
Hedge funds and mutual funds have been dumping stocks to raise cash to meet redemptions from their clients, traders noted, exacerbating the late-day selling.
The Dow Jones industrial average <.DJI> slid 203.18 points, or 2.42 percent, to 8,175.77, its lowest close since April 2003. The Standard & Poor's 500 Index <.SPX> dropped 27.85 points, or 3.18 percent, to 848.92, its lowest close
since March 2003.
The Nasdaq Composite Index <.IXIC> was down 46.13 points, or 2.97 percent, at 1,505.90, its lowest close since May 2003.
NYMEX-NEW YORK, Oct 27 (Reuters) - U.S. crude futures settled lower on Monday as trading seesawed with the volatile U.S. stock market, with recession concerns continuing to fuel worry about falling oil demand.
Crude oil was pressured on Monday despite Friday's OPEC agreement to cut production by 1.5 million barrels per day.
On the New York Mercantile Exchange, December crude fell 93 cents, or 1.45 percent, to settle at $63.22 a barrel -- lowest settlement since May 29, 2007 -- trading from $61.30 to $65.77.
CBOT-SOYBEANS - November up 29-1/4 cents at $8.93 per bushel; January up 30-1/2 at $8.97-1/2.
Higher on tight cash markets and technical rebound after spot month fell to a near 14-month low last week. Additional support stemming from stock market recovery.
CBOT-SOYOIL - December up 0.25 at 31.72 cents per lb. Following soybeans higher and as crude oil came off lows.
REGIONAL EQUITIES-SINGAPORE, Oct 24 (Reuters) - Southeast Asian stocks tumbled to new multi-year lows hit by profit warnings and poor earnings outlooks, with banks and other blue chips such as Singapore's United Overseas Bank and Thailand's PTT falling sharply.
Malaysia's second-largest palm oil planter IOI Corp fell nearly 19 percent after sources said the company allegedly asked key personnel to resign following foreign exhange losses.
Singapore stocks <.FTSTI> plunged 8.3 percent on Friday, breaking below the pyschological 1,600 level to hit a 5-year low.
Thai stocks <.SETI> returned from a market holiday on Thursday to close 7 percent down, hitting a 5-year low, while Indonesian shares <.JKSE> lost 6.9 percent to mark its lowest since March 2006.
Malaysia <.KLSE>, the region's outperformer so far this year, also dropped 3.6 percent to a 4-year low. The Philippine index <.PSI> eased 2.1 percent to its lowest in 3 years, while Vietnam <.VNI> dived 4.3 percent to erase gains in the past 30 months.
Trading was volatile and volume was light, with stocks falling sharply in the last half hour of trading. With just four days left in October, the S&P 500 is on track for its worst month ever in the post-World War Two period.
Hedge funds and mutual funds have been dumping stocks to raise cash to meet redemptions from their clients, traders noted, exacerbating the late-day selling.
The Dow Jones industrial average <.DJI> slid 203.18 points, or 2.42 percent, to 8,175.77, its lowest close since April 2003. The Standard & Poor's 500 Index <.SPX> dropped 27.85 points, or 3.18 percent, to 848.92, its lowest close
since March 2003.
The Nasdaq Composite Index <.IXIC> was down 46.13 points, or 2.97 percent, at 1,505.90, its lowest close since May 2003.
NYMEX-NEW YORK, Oct 27 (Reuters) - U.S. crude futures settled lower on Monday as trading seesawed with the volatile U.S. stock market, with recession concerns continuing to fuel worry about falling oil demand.
Crude oil was pressured on Monday despite Friday's OPEC agreement to cut production by 1.5 million barrels per day.
On the New York Mercantile Exchange, December crude
CBOT-SOYBEANS - November
Higher on tight cash markets and technical rebound after spot month fell to a near 14-month low last week. Additional support stemming from stock market recovery.
CBOT-SOYOIL - December
REGIONAL EQUITIES-SINGAPORE, Oct 24 (Reuters) - Southeast Asian stocks tumbled to new multi-year lows hit by profit warnings and poor earnings outlooks, with banks and other blue chips such as Singapore's United Overseas Bank and Thailand's PTT falling sharply.
Malaysia's second-largest palm oil planter IOI Corp
Singapore stocks <.FTSTI> plunged 8.3 percent on Friday, breaking below the pyschological 1,600 level to hit a 5-year low.
Thai stocks <.SETI> returned from a market holiday on Thursday to close 7 percent down, hitting a 5-year low, while Indonesian shares <.JKSE> lost 6.9 percent to mark its lowest since March 2006.
Malaysia <.KLSE>, the region's outperformer so far this year, also dropped 3.6 percent to a 4-year low. The Philippine index <.PSI> eased 2.1 percent to its lowest in 3 years, while Vietnam <.VNI> dived 4.3 percent to erase gains in the past 30 months.
DJI Weely: eyeing 7882
DJI extended its sharp losses. Looks may heading to test the recent low at 7882 mark. For upside, resistance is at 9284.
FKLI Weekly: Where is the bottom?
Market tumbled all the way without taking any break. We currently look for the support at 795-800 mark. for upside, resistance is at 930-935.
KLSE Weekly: looking to survive at 790-800 mark
Market remained under pressure with another long black candle printed. As for now, we pegged the support at 790-800 mark. For upside, resistance is at 925-930.
FCPO Weekly: 1252-1233 manage to defend?
FCPO falling sharply non-stop and violated the support at 1400-1380 level completely. We currently looking for the next support at 1252 (low since 2nd Sept, 2005) followed by 1233 (low since 8th Nov, 2003). For upside, resistance remained at 1902-1934 (gap left over since 5th Oct, 2008).
Friday, October 24, 2008
Trader's Comment: CPO futures crasehd to end at the new 2-years low again
CPO futures crashed by 10.3% to end at the new 2-year low again, amid fear of high stock level and also regional stock market meltdown spill over to local commodities market. Benchmark Jan09 open at 1520 and hit intra day high of 1556 after covering yesterday’s gap. Then it just gives up its gain and tumbled all the way down for the rest of the day. Crude oil surrendered its earlier gain and fell more than $4 during Asian time trading. Furthermore, Reuters poll had stated that Malaysia’s October palm oil stock are expected to climb to a record level of 2.04 million tones as output rises amid slowdown in export. This has worsened the already weak market sentiment. As traders worry of that build-up in stock supplies, CPO prices were slammed down by its daily 10% trading limit and extend its limit to 15%. Benchmark Jan09 settled at 1390, down by RM160, after it hit the intra day low of 1358.
Breaking News-RTRS--POLL-Malaysia's Oct palm stocks may scale new record
KUALA LUMPUR, Oct 24 - Malaysia's October palm oil
stocks are expected to climb 4.6 percent to a record level of
2.04 million tonnes as output still rose despite the holiday
season amid a marked slowdown in shipments, a Reuters poll showed
on Friday.
Palm oil production in Malaysia, the world's second-largest
supplier, will probably edge up 0.7 percent to 1.59 million
tonnes in October, according to a median estimate of five
plantation houses.
Although the rate of production has somewhat slowed compared
to previous months, perhaps heralding the end of the high
production cycle as some respondents say, exports still lagged
behind, sliding 7.2 percent in October to 1.2 million tonnes.
stocks are expected to climb 4.6 percent to a record level of
2.04 million tonnes as output still rose despite the holiday
season amid a marked slowdown in shipments, a Reuters poll showed
on Friday.
Palm oil production in Malaysia, the world's second-largest
supplier, will probably edge up 0.7 percent to 1.59 million
tonnes in October, according to a median estimate of five
plantation houses.
Although the rate of production has somewhat slowed compared
to previous months, perhaps heralding the end of the high
production cycle as some respondents say, exports still lagged
behind, sliding 7.2 percent in October to 1.2 million tonnes.
Breaking News-RTRS-MALAYSIAN PALM OIL HITS 10 PCT LIMIT DOWN ON FALLING CRUDE OIL, HIGH STOCK FEARS
KUALA LUMPUR, Oct 24 - Malaysian crude palm oil futures slumped by its daily 10 percent trading limit on Friday as crude oil posted heavy losses amid fears of a build-up in supplies, traders said.
The benchmark January 2009 contract on the Bursa Malaysia Derivatives Exchange fell 155 ringgit to 1,395 ringgit ($389.9) per tonne.
The benchmark January 2009 contract on the Bursa Malaysia Derivatives Exchange fell 155 ringgit to 1,395 ringgit ($389.9) per tonne.
Breaking News-RTRS-US regulators examining market close stock surges
WASHINGTON/NEW YORK, Oct 23 (Reuters) - U.S. regulators are taking a closer look at unprecedented volatility in stock markets near the close of trading, hunting for any signs of manipulation.
"It is something we're looking at," said Brendan Intindola, a spokesman for the Financial Industry Regulatory Authority. "We're really taking an extra close look at it in the light of the volatility we've seen in the market in recent weeks."
FINRA typically looks at "market on close" activity, which are orders executed as near to the end of the exchange day as possible.
"It is something we're looking at," said Brendan Intindola, a spokesman for the Financial Industry Regulatory Authority. "We're really taking an extra close look at it in the light of the volatility we've seen in the market in recent weeks."
FINRA typically looks at "market on close" activity, which are orders executed as near to the end of the exchange day as possible.
Trader's Highlight
DJI-NEW YORK, Oct 23 (Reuters) - U.S. stocks clawed back from five-year lows on Thursday, led by a bounce in energy and health-care stocks after oil recovered from a 16-month trough and top pharmaceutical companies posted reassuring earnings.
The Dow Jones industrial average <.DJI> rose 172.04 points, or 2.02 percent, to 8,691.25, while the Standard & Poor's 500 Index <.SPX> gained 11.33 points, or 1.26 percent, to 908.11. The Nasdaq Composite Index <.IXIC>, however, was down 11.84 points, or 0.73 percent, at 1,603.91.
NYMEX-NEW YORK, Oct 23 (Reuters) - U.S. crude futures rose on Thursday, bouncing ahead of Friday's OPEC meeting expected to result in a production cut.
On the New York Mercantile Exchange, December crude rose $1.09, or 1.63 percent, to settle at $67.84 a barrel, trading from $65.90 to $69.41.
CBOT-SOYBEANS - November up 25-1/2 cents at $8.84-1/2 a bushel; January up 23-3/4 at $8.88-1/2.
U.S. Census Bureau reported September soy crush at 125.7 million bushels, versus estimates for 127.0-127.4 million.
CBOT-SOYOIL - December up 0.48 cent at 32.82 cents per lb.
Higher on spillover from soybeans, crude oil. Trading limit expanded to 3.5 cents for Thursday's session..
Census preliminary U.S. September soyoil stocks figure was 2.528 billion lbs, versus estimates for 2.378-2.435 billion.
FCPO-KUALA LUMPUR, Oct 23 (Reuters) - Vegetable oil markets in Asia recouped some of Thursday's losses as investors tiptoed back on expectations OPEC would cut supplies of crude oil and boost commodities across the board.
Malaysian crude palm oil futures ended 1 percent lower after tumbling much as 5.8 percent, Dalian soyoil bounced away from its 5 percent limit down and Chicago soybean oil rose 0.5 percent.
REGIONAL EQUITIES-SINGAPORE, Oct 23 (Reuters) - Southeast Asian equities took
another beating on Thursday on earnings worries, while uneasiness over persistent credit tightness hit banks such as DBS Group and PT Bank Rakyat Indonesia .
Indonesian shares <.JKSE> slid 3.1 percent to mark a fresh 2-year low, the Philippine index <.PSI> dropped 4.6 percent, while Vietnam <.VNI> gave up 3.9 percent.
Thai stocks <.SETI> lost 2.8 percent, while Malaysia <.KLSE> eased 1.4 percent, maintaining its outperformance in the region. Banks were among the main losers in the region.
Singapore's top lender by assets DBS Group fell 5.3 percent to mark a new 5-year low. The bank said on Wednesday it will compensate as much as $53.4 million to some investors who bought structured products linked to collapsed bank Lehman
Brothers.
Malaysia's Maybank, which said it has identified Lehman-linked investors, also fell 2.8 percent. Rival Bumiputra Commerce slid 3.6 percent, even
after the country's Association of Banks said in a statement its banks remain well-capitalised and lending activities have not been affected.
Among other losers, Thai's Siam Commercial Bank dropped 4.2 percent, while Indonesia's PT Bank Rakyat Indonesia Tbk plunged 7.1 percent.
The Dow Jones industrial average <.DJI> rose 172.04 points, or 2.02 percent, to 8,691.25, while the Standard & Poor's 500 Index <.SPX> gained 11.33 points, or 1.26 percent, to 908.11. The Nasdaq Composite Index <.IXIC>, however, was down 11.84 points, or 0.73 percent, at 1,603.91.
NYMEX-NEW YORK, Oct 23 (Reuters) - U.S. crude futures rose on Thursday, bouncing ahead of Friday's OPEC meeting expected to result in a production cut.
On the New York Mercantile Exchange, December crude
CBOT-SOYBEANS - November
U.S. Census Bureau reported September soy crush at 125.7 million bushels, versus estimates for 127.0-127.4 million.
CBOT-SOYOIL - December
Higher on spillover from soybeans, crude oil. Trading limit expanded to 3.5 cents for Thursday's session..
Census preliminary U.S. September soyoil stocks figure was 2.528 billion lbs, versus estimates for 2.378-2.435 billion.
FCPO-KUALA LUMPUR, Oct 23 (Reuters) - Vegetable oil markets in Asia recouped some of Thursday's losses as investors tiptoed back on expectations OPEC would cut supplies of crude oil and boost commodities across the board.
Malaysian crude palm oil futures ended 1 percent lower after tumbling much as 5.8 percent, Dalian soyoil bounced away from its 5 percent limit down and Chicago soybean oil rose 0.5 percent.
REGIONAL EQUITIES-SINGAPORE, Oct 23 (Reuters) - Southeast Asian equities took
another beating on Thursday on earnings worries, while uneasiness over persistent credit tightness hit banks such as DBS Group
Indonesian shares <.JKSE> slid 3.1 percent to mark a fresh 2-year low, the Philippine index <.PSI> dropped 4.6 percent, while Vietnam <.VNI> gave up 3.9 percent.
Thai stocks <.SETI> lost 2.8 percent, while Malaysia <.KLSE> eased 1.4 percent, maintaining its outperformance in the region. Banks were among the main losers in the region.
Singapore's top lender by assets DBS Group
Brothers.
Malaysia's Maybank
after the country's Association of Banks said in a statement its banks remain well-capitalised and lending activities have not been affected.
Among other losers, Thai's Siam Commercial Bank
DJI Daily: stuck in range
Market stuck in range. We continue to look for the support and resistance at 8197 and 9280-9300 level respectively.
Thursday, October 23, 2008
Announcement: BURSA close on 27th Oct, 2008 (Monday)
Please be informed that BMD will be closed on 27th October, 2008 (Monday) in conjunction with Deepavali.
BMD will resume trading on 28th October, 2008 (Tuesday).
Wishing You A Happy Deepavali
& Happy Holiday
BMD will resume trading on 28th October, 2008 (Tuesday).
Wishing You A Happy Deepavali
& Happy Holiday
FCPO Daily: another fresh low at 1475
Market hits another fresh low at 1475 in intra-day basis after immediate support at 1510-1500 violated completely. We currently look for the support at 1400-1380. Resistance is at 1635-1639 (gap left over yesterday).
Trader's Comment: Malaysia CPO futures ended in a negative territory after a volatile trading day.
Malaysia CPO futures ended in a negative territory after a volatile trading day. Benchmark Jan09 open RM76 lower at 1489, as overnight crude oil futures hit a fresh 16-month low at $66.75, after government data showed higher than expected domestic stocks level, and also the limit down in CBOT soy oil. The price then bounced back and hit the morning high of 1539, but failed in its attempt to cover yesterday’s left over gap. Prices were immediately hammered down to intra day low at 1475, following Dalian soy oil hitting its 5% limit down again for the second consecutive day. But after lunch break, players began to speculate that oil producer countries would decide to cut their oil output during tomorrow’s meeting, hence pushed up the price to hit intra day high at 1586. Nevertheless, the “bull” is not yet strong enough to change the sentiment of fear and uncertainty in the market. Benchmark Jan09 retreated from the high caused by some long liquidation activities and settled at 1550. Daily volume increased slightly, with 15,785 contracts changed hands.
KLSE: Fresh New Low at 880
KLSE has been sliding down to hit a fresh low at 880 with the recent low has been broken at 888 level and also the support at 883 level. For now, the support is pegged at 858-860 and the resistance is looking at 900 levels.
FKLI: Fresh New Low at 871.5
FKLI hit a fresh low at 871.5 after violated the recent low at 888. Market looks to survive at above 870 marks. Penetration of 870 levels may see next support at 841.5-845 level. For upside, immediate resistance is at 900 followed by 924.5-925.5.
Breaking News-RTRS-Indonesia cuts November palm oil export tax to 2.5 pct
JAKARTA, Oct 23 (Reuters) - Indonesia has cut its palm oil export tax for November to 2.5 percent from 7.5 percent in October, the country's trade ministry said on Thursday.
Breaking News-RTRS-India considering tax on veg oil imports -minister
NEW DELHI, Oct 22 (Reuters) - India is considering to tax vegetable oil imports to protect the domestic industry from a slump in prices and lift a ban on exports, the farm minister said on Wednesday.
The Solvent Extractors' Association of India (SEA), an apex body of vegetable oil traders, has asked the government to impose a 30 percent import duty on crude palm oil, 37.5 percent on RBD palmolein and 20 percent on crude soybean oil.
Pawar said the government would consider reimposing import tax on vegetable oils, allow exports and scrap export tax on basmati rice after Diwali, or the festival of lights, Oct. 28.
The Solvent Extractors' Association of India (SEA), an apex body of vegetable oil traders, has asked the government to impose a 30 percent import duty on crude palm oil, 37.5 percent on RBD palmolein and 20 percent on crude soybean oil.
Pawar said the government would consider reimposing import tax on vegetable oils, allow exports and scrap export tax on basmati rice after Diwali, or the festival of lights, Oct. 28.
Trader's Highlight
DJI-NEW YORK, Oct 22 (Reuters) - The crisis that has stalked U.S. and European financial markets for a year slammed the developing world on Wednesday, knocking stock and commodity prices to multi-year lows and igniting greater fears of a global recession.
The Dow Jones industrial average <.DJI> closed down 514.45 points, or 5.69 percent, at 8,519.21. The Standard & Poor's 500 Index <.SPX> fell 58.27 points, or 6.10 percent, at 896.78. The Nasdaq Composite Index <.IXIC> slid 80.93 points, or 4.77 percent, at 1,615.75.
CBOT-SOYBEANS - November down 49 cents at $8.59 a bushel. Tumbled on mounting signs of global recession as stock markets and crude decline and dollar soars to two-year top.
U.S. Census to release September crush data Thursday.
CBOT-SOYOIL - December down 2.5 at 33.30 cents. Fall daily 2.5-cent limit as crude oil dives.
FCPO-KUALA LUMPUR/JAKARTA, Oct 22 (Reuters) - Malaysian crude palm oil futures prices fell over 5 percent on Wednesday to their lowest level since October 2006 amid a general selloff in commodities, spooked by the prospect of a global recession.
The benchmark January crude palm oil futures contract traded on Bursa Malaysia closed down 5.27 percent at 1,568 ringgit ($442.3) per tonne, having traded as low as 1,542 ringgit.
REGIONAL EQUITIES-SINGAPORE, Oct 22 (Reuters) - Southeast Asian stock markets slid further on Wednesday as investors fretted over poor earnings outlooks.
Singapore <.FTSTI> led the region's losses to fall 5.2 percent to its lowest close since August 2004, while Indonesian shares <.JKSE> slid 4.2 percent on banks to hit a 27-month low.
Thai stocks <.SETI> dropped 2.8 percent lower while Malaysia <.KLSE> shed 1.5 percent. The Philippine index <.PSI> gave up 1.1 percent and Vietnamese shares <.VNI> lost 1.3 percent.
The Dow Jones industrial average <.DJI> closed down 514.45 points, or 5.69 percent, at 8,519.21. The Standard & Poor's 500 Index <.SPX> fell 58.27 points, or 6.10 percent, at 896.78. The Nasdaq Composite Index <.IXIC> slid 80.93 points, or 4.77 percent, at 1,615.75.
CBOT-SOYBEANS - November
U.S. Census to release September crush data Thursday.
CBOT-SOYOIL - December
FCPO-KUALA LUMPUR/JAKARTA, Oct 22 (Reuters) - Malaysian crude palm oil futures prices fell over 5 percent on Wednesday to their lowest level since October 2006 amid a general selloff in commodities, spooked by the prospect of a global recession.
The benchmark January crude palm oil futures contract
REGIONAL EQUITIES-SINGAPORE, Oct 22 (Reuters) - Southeast Asian stock markets slid further on Wednesday as investors fretted over poor earnings outlooks.
Singapore <.FTSTI> led the region's losses to fall 5.2 percent to its lowest close since August 2004, while Indonesian shares <.JKSE> slid 4.2 percent on banks to hit a 27-month low.
Thai stocks <.SETI> dropped 2.8 percent lower while Malaysia <.KLSE> shed 1.5 percent. The Philippine index <.PSI> gave up 1.1 percent and Vietnamese shares <.VNI> lost 1.3 percent.
DJI Daily: another wave of selling down
Support at 8718 was penetrated completed following another wave of selling down. We currently look for the support and resistance at 8197 and 9280-9300 level respectively.
Wednesday, October 22, 2008
FCPO Daily: no turning back
Market no turning back and violated the recent low at 1593. We currently look for the immediate support at 1500-1510. Resistance is at 1635-1639 (gap left over today).
Trader's Comment: Malaysia CPO futures ended in a fresh two-years low again
Malaysia CPO futures ended in a fresh two-years low again amid a general sell off in commodities, primarily led by falling crude oil prices. Benchmark Jan09 initially open RM27 lower at 1625, tracking overnight NYMEX crude oil prices tumbled 4 percent as investors worries that production cut by OPEC might not be enough to offset weakening energy demand caused by global recession. Almost 200 points down in rival soy oil overnight also added selling pressures, this sent Benchmark Jan09 prices kept on falling without much turning back until it hit intra day low at 1542 in the afternoon session. This was mainly driven by the fell of crude oil prices that had drop more than $3 a barrel to below $70 level during Asian time trading. Later, some intra day short covering activities emerged and caused Benchmark Jan09 to bounce back a little and hover around 1580-1550 levels, before it settling at 1565, down RM 87. Market sentiment remains weak.
FKLI Daily: 888 manage to defend?
Market fall with double digit losses yet recent low at 888 remains defended well. Looks more potential of downside room if 888 penetrated. As for now, we continue to look for the immediate downside support at 888 followed by 876-872. For upside, immediate resistance is at 924.5-925.5 followed by 931-944 (gap left over since 15 Oct, 2008).
KLSE Daily: remain sideways
KLSE continue its correction phase between 888 to 930. Looks may heading to test the recent low at 888 level.
Breaking News-RTRS-India likely to tax edible oil imports - govt
NEW DELHI, Oct 22 (Reuters) - India is likely to impose a tax on edible oil imports next month, Farm Minister Sharad Pawar said on Wednesday.
The government may also scrap an export tax on basmati rice but has no plan to relax the ban on shipments of cheaper grades of rice, he told reporters.
The government may also scrap an export tax on basmati rice but has no plan to relax the ban on shipments of cheaper grades of rice, he told reporters.
Breaking News-RTRS-Big fall in Brazil's soybean crop looms-Oil World
HAMBURG, Oct 21 (Reuters) - Brazil could be facing a fall in its soybean crop for harvesting in early 2009 of one to three million tonnes because of poor weather and low fertilizer use reducing yields, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Breaking News-RTRS-UPDATE 2-Malaysia ponders steps to tackle plunging palm oil
KUALA LUMPUR, Oct 21 (Reuters) - The Malaysian government postponed a parliamentary meeting meant to address tumbling palm oil prices but pledged to take "prudent measures" to support small planters who could be hit hard if prices continue to fall.
Malaysia had been expected to announce steps on Tuesday to staunch the fall in prices at the meeting headed by Prime Minister Abdullah Ahmad Badawi, but instead opted to move back the meeting to Oct. 30. A leading industry analyst warned that the worst of the sell-off was not yet over.
Deputy Prime Minister Najib Razak told a planters group that Malaysia, the world's second largest palm producer, was taking the impact of falling palm oil prices "seriously", although it would not take any panicky action.
Malaysia had been expected to announce steps on Tuesday to staunch the fall in prices at the meeting headed by Prime Minister Abdullah Ahmad Badawi, but instead opted to move back the meeting to Oct. 30. A leading industry analyst warned that the worst of the sell-off was not yet over.
Deputy Prime Minister Najib Razak told a planters group that Malaysia, the world's second largest palm producer, was taking the impact of falling palm oil prices "seriously", although it would not take any panicky action.
Trader's Highlight
DJI-NEW YORK, Oct 21 (Reuters) - U.S. stocks skidded on Tuesday, as commodity shares fell on fears of a global recession and a rash of disappointing earnings heightened
worries about the deteriorating profit picture.
The Dow Jones industrial average <.DJI> fell 231.77 points, or 2.50 percent, to close at 9,033.66, while the Standard & Poor's 500 Index <.SPX> shed 30.35 points, or 3.08 percent, to 955.05, just above its low for the day. The Nasdaq
Composite Index <.IXIC> dropped 73.35 points, or 4.14 percent, to 1,696.68, near its session low.
NYMEX-NEW YORK, Oct 21 (Reuters) - Oil prices tumbled 4 percent on Tuesday amid worries that a global recession would crush fuel demand, limiting the impact of any supply cuts by OPEC.
U.S. crude for November delivery, which expired on Tuesday, settled down $3.36 at $70.89 a barrel. London Brent crude settled down $2.31 at $69.72 a barrel.
CBOT-SOYBEANS - November down 21 cents at $9.08 per bushel, January down 25-1/2 at $9.15-1/4.
Pressured by declines in crude oil amid recession jitters; firmer dollar also bearish. Traders taking profits after Monday's rally.
CBOT-SOYOIL - December down 1.81 cents at 35.80 cents per lb. Pressured by declines in soybeans and crude oil.
FCPO-KUALA LUMPUR, Oct 21 (Reuters) - Malaysian crude palm oil futures ended 1.5 percent lower on Tuesday after a leading industry analyst gave a bearish forecast amid losses in global vegetable oil markets.
The market was also pressured when Malaysia, the world's second-largest producer of palm oil, pushed back a key cabinet meeting on boosting palm oil prices to next week from Tuesday because several ministers were unable to attend.
The benchmark January palm contract on Bursa Malaysia's Derivatives Exchange settled down 25 ringgit at 1,652 ringgit ($486) per tonne after going as low as 1,639 ringgit.
REGIONAL EQUITIES-SINGAPORE, Oct 21 (Reuters) - Most Southeast Asian stock markets edged higher on Tuesday as investors bet government rescue efforts would ease the global credit crisis and stabilise volatile financial markets.
The Philippine index <.PSI> led the day's gains, rising 2.6 percent, with Vietnamese shares <.VNI> up 2.5 percent, Malaysia <.KLSE> 1 percent, Indonesia <.JKSE> 0.9 percent and Thailand <.SETI> 0.4 percent.
But Singapore shares <.FTSTI> surrendered early gains to close down 1 percent, pressured by losses in Hong Kong. Hong Kong's Hang Seng index <.HSI> was weighed down by conglomerate CITIC Pacific <0267.HK>, which lost more than half its market value after it warned of forex losses amounting to nearly $2 billion.
worries about the deteriorating profit picture.
The Dow Jones industrial average <.DJI> fell 231.77 points, or 2.50 percent, to close at 9,033.66, while the Standard & Poor's 500 Index <.SPX> shed 30.35 points, or 3.08 percent, to 955.05, just above its low for the day. The Nasdaq
Composite Index <.IXIC> dropped 73.35 points, or 4.14 percent, to 1,696.68, near its session low.
NYMEX-NEW YORK, Oct 21 (Reuters) - Oil prices tumbled 4 percent on Tuesday amid worries that a global recession would crush fuel demand, limiting the impact of any supply cuts by OPEC.
U.S. crude for November delivery
CBOT-SOYBEANS - November
Pressured by declines in crude oil amid recession jitters; firmer dollar also bearish. Traders taking profits after Monday's rally.
CBOT-SOYOIL - December
FCPO-KUALA LUMPUR, Oct 21 (Reuters) - Malaysian crude palm oil futures ended 1.5 percent lower on Tuesday after a leading industry analyst gave a bearish forecast amid losses in global vegetable oil markets.
The market was also pressured when Malaysia, the world's second-largest producer of palm oil, pushed back a key cabinet meeting on boosting palm oil prices to next week from Tuesday because several ministers were unable to attend.
The benchmark January palm contract
REGIONAL EQUITIES-SINGAPORE, Oct 21 (Reuters) - Most Southeast Asian stock markets edged higher on Tuesday as investors bet government rescue efforts would ease the global credit crisis and stabilise volatile financial markets.
The Philippine index <.PSI> led the day's gains, rising 2.6 percent, with Vietnamese shares <.VNI> up 2.5 percent, Malaysia <.KLSE> 1 percent, Indonesia <.JKSE> 0.9 percent and Thailand <.SETI> 0.4 percent.
But Singapore shares <.FTSTI> surrendered early gains to close down 1 percent, pressured by losses in Hong Kong. Hong Kong's Hang Seng index <.HSI> was weighed down by conglomerate CITIC Pacific <0267.HK>, which lost more than half its market value after it warned of forex losses amounting to nearly $2 billion.
DJI Daily: Correction phase extended
Market extended its correction phase. Thus, we continue to look for the support at 8718. Upside resistance remains at 9427-9448 followed by 9628 level.
Tuesday, October 21, 2008
FCPO Daily: range trading extended
Market extended its range trading after failed to cover upside gap left over at 1727-1734. Support and resistance remains at 1593 and 1727-1734 (gap left over since 15 Oct, 2008)level respectively.
Trader's Comment: CPO futures ended lower after trading in a rather mix market sentiment
CPO futures ended lower after trading in a rather mix market sentiment. Earlier Benchmark Jan09 open RM18 higher at 1695 and climbed to hit intra day high of 1714 following a strong overnight closed at CBOT soy complex and higher NYMEX crude oil. It then eased off due to lack of follow through buying support and closed at 1685 by mid day. A mix of several supportive and negative news has influenced CPO prices today. First is the Malaysia government considering removing windfall tax after CPO prices declined sharply since the tax was imposed, but then Malaysia postponed a special meeting to discuss on measures to boost palm oil prices, this made traders a bit disappointed as they are waiting for some good news from it. During afternoon session, a leading analyst James Fry commented that palm oil might drop to RM1200 if Brent crude falls to $55. Meanwhile Iran’s oil minister said OPEC might cut oil output by 2-2.5m barrels per day. In the later afternoon session, CPO encounters some long liquidation activities, coupled with easier e-CBOT. Benchmark Jan09 fall to the day low of 1639 before it settled at 1652. Daily volume remains good, with 11,435 contracts changed hands.
FKLI Daily: off the low
Market off low to end mix. Correction phase likely to extend in near term. We continue to look for the immediate downside support at 888. For upside, resistance is at 931-944 (gap left over since 15 Oct, 2008).
KLSE Daily: stuck in range
KLSE stuck in tight range between 914 to 920 level. Correction phase looks may continue in near term between 888 to 930.
Breaking News-RTRS-OPEC may cut oil output by 2- 2.5 million barrels per day-Iran
TEHRAN, Oct 21 (Reuters) - Iran's oil minister said on Tuesday the drop in demand could push OPEC to cut output by 2- 2.5 million barrels per day and said the "era of cheap oil is finished."
Gholamhossein Nozari told reporters a drop in demand "can push OPEC to cut the current production by 2-2.5 million barrels per day." Iran's OPEC governor, Mohammad Ali Khatibi, cited different views in OPEC on the cut needed, ranging from 1-3 million bpd.
Gholamhossein Nozari told reporters a drop in demand "can push OPEC to cut the current production by 2-2.5 million barrels per day." Iran's OPEC governor, Mohammad Ali Khatibi, cited different views in OPEC on the cut needed, ranging from 1-3 million bpd.
Breaking News-RTRS- MALAYSIAN PALM OIL MAY DROP TO 1,200 RGT IF BRENT CRUDE FALLS TO $55 - ANALYST FRY
KUALA LUMPUR, Oct 21 - Malaysia's palm oil output is likely to grow at a slower rate over the next six months with the current slowdown gaining pace, leading industry analyst James Fry said on Tuesday.
Palm oil prices have fall 60 percent from their March peak of 4,486 ringgit on bumper crops, slowing demand and fears financial turmoil will lead to a long global recession.
Palm oil prices have fall 60 percent from their March peak of 4,486 ringgit on bumper crops, slowing demand and fears financial turmoil will lead to a long global recession.
Breaking News-RTRS-Malaysia cancels meeting on palm industry measures
KUALA LUMPUR, Oct 21 (Reuters) - Malaysia cancelled a special meeting on boosting palm oil prices scheduled for Tuesday as Prime Minister Abdullah Ahmad Badawi was unable to chair the meeting, an official from the country's commodities ministry said.
Breaking News-RTRS-UPDATE 2-France to lend 10.5 bln euros to top six banks
PARIS, Oct 20 (Reuters) - The French state will lend 10.5 billion euros ($14.12 billion) to the country's top six banks before year-end to prop up their capital reserves, Economy Minister Christine Lagarde said on Monday.
President Nicolas Sarkozy last week said the government had earmarked 360 billion euros as part of an international effort to help banks survive the worst financial crisis since the Great Depression 80 years ago.
President Nicolas Sarkozy last week said the government had earmarked 360 billion euros as part of an international effort to help banks survive the worst financial crisis since the Great Depression 80 years ago.
Breaking News-RTRS--UPDATE 1-China intervenes to shore up falling crop prices
BEIJING, Oct 20 (Reuters) - China will purchase grains for reserves at prices above current market levels, set up national soybean reserves and buy grains, rapeseed and cotton, in order to help shore up incomes of farmers whose commodity prices are falling sharply.
The moves are in line with a pledge by top policy makers this month to increase rural incomes. They also serve to put a floor under softening crop prices, so that discouraged farmers continue to plant crops next year.
The moves are in line with a pledge by top policy makers this month to increase rural incomes. They also serve to put a floor under softening crop prices, so that discouraged farmers continue to plant crops next year.
Breaking News-RTRS-Malaysia may scrap palm oil windfall tax - paper
KUALA LUMPUR, Oct 21 (Reuters) - Malaysia's government is considering removing a windfall tax on crude palm oil (CPO), the country's commodities minister was quoted as saying on Tuesday.
"CPO prices have been declining recently ... As such there is no need to implement the windfall tax," Plantation Industries and Commodities Minister Peter Chin told a conference on Monday, the Star newspaper reported.
The threshold for the windfall tax is 2,000 ringgit ($568.2) per tonneand CPO prices traded at 1,718 ringgit a tonne at the close of Malaysian trade on Monday.
"CPO prices have been declining recently ... As such there is no need to implement the windfall tax," Plantation Industries and Commodities Minister Peter Chin told a conference on Monday, the Star newspaper reported.
The threshold for the windfall tax is 2,000 ringgit ($568.2) per tonneand CPO prices traded at 1,718 ringgit a tonne at the close of Malaysian trade on Monday.
Trader's Highlight
DJI-NEW YORK, Oct 20 (Reuters) -U.S. stocks rallied on Monday after the Federal Reserve's chairman backed more government spending to help the economy and credit market conditions showed further signs of improvement.
But the advance of over 4 percent in both the Dow and S&P came on the thinnest daily volume in nearly a month, signaling investors remain skittish about diving back into stocks after weeks of punishing volatility.
The Dow Jones industrial average <.DJI> jumped 413.21 points, or 4.67 percent, to 9,265.43, while the Standard & Poor's 500 Index <.SPX> climbed 44.85 points, or 4.77 percent, to 985.40. The Nasdaq Composite Index <.IXIC> shot up 58.74 points, or 3.43 percent, at 1,770.03.
NYMEX-NEW YORK, Oct 20 (Reuters) - U.S. crude futures ended more than $2 higher on Monday, with expectations OPEC will cut output at its Friday meeting.
On the New York Mercantile Exchange, crude settled up $2.40, or 3.34 percent, at $74.25 a barrel, trading from $71.77 to $76.12. The contract expires on Tuesday.
CBOT-SOYBEANS - November up 35 cents at $9.29 per bushel; January up 34 at $9.40-3/4.
Led by gains in crude oil and U.S. financial markets, plus news that China was setting up a national soybean reserve. Added support from an expected slowdown in U.S. harvest progress due to wet and cool weather.
CBOT-SOYOIL - December up 2.11 cents at 37.61 cents per lb. Gains in soybeans and crude oil lend support; China's Dalian soyoil market sharply higher overnight.
FCPO-KUALA LUMPUR, Oct 20 (Reuters) - Asian vegetable oil markets gained on Monday as investors took cues from higher crude oil prices while governments and commodity cartels looked towards stabilising global markets.
Malaysian palm soared 2.6 percent while some Dalian soyoil contracts <0#DBY:> hit limit up and Chicago soyoil <0#BO:> jumped 3.8 percent during Asian hours -- recovering from losses last week after fears of a recession sparked a sell-off.
REGIONAL EQUITIES-SINGAPORE, Oct 20 (Reuters) - Most Southeast Asian stock markets rose on Monday on hopes that frozen credit markets are slowly thawing, and as investors picked up battered blue chips
Singapore <.FTSTI> led gains, rising 3.2 percent aided by property stocks, Indonesia <.JKSE> gained 2 percent on telcos, while the Thai index <.SETI> was 0.9 percent higher in late trade on energy and banks.
Malaysia <.KLSE> edged 0.5 percent higher, but the Philippine index <.PSI> gave up 1.7 percent and Vietnamese shares <.VNI> declined 3.1 percent on worries over bleaker economic conditions.
But the advance of over 4 percent in both the Dow and S&P came on the thinnest daily volume in nearly a month, signaling investors remain skittish about diving back into stocks after weeks of punishing volatility.
The Dow Jones industrial average <.DJI> jumped 413.21 points, or 4.67 percent, to 9,265.43, while the Standard & Poor's 500 Index <.SPX> climbed 44.85 points, or 4.77 percent, to 985.40. The Nasdaq Composite Index <.IXIC> shot up 58.74 points, or 3.43 percent, at 1,770.03.
NYMEX-NEW YORK, Oct 20 (Reuters) - U.S. crude futures ended more than $2 higher on Monday, with expectations OPEC will cut output at its Friday meeting.
On the New York Mercantile Exchange, crude settled up $2.40, or 3.34 percent, at $74.25 a barrel, trading from $71.77 to $76.12. The contract expires on Tuesday.
CBOT-SOYBEANS - November
Led by gains in crude oil and U.S. financial markets, plus news that China was setting up a national soybean reserve. Added support from an expected slowdown in U.S. harvest progress due to wet and cool weather.
CBOT-SOYOIL - December
FCPO-KUALA LUMPUR, Oct 20 (Reuters) - Asian vegetable oil markets gained on Monday as investors took cues from higher crude oil prices while governments and commodity cartels looked towards stabilising global markets.
Malaysian palm soared 2.6 percent while some Dalian soyoil contracts <0#DBY:> hit limit up and Chicago soyoil <0#BO:> jumped 3.8 percent during Asian hours -- recovering from losses last week after fears of a recession sparked a sell-off.
REGIONAL EQUITIES-SINGAPORE, Oct 20 (Reuters) - Most Southeast Asian stock markets rose on Monday on hopes that frozen credit markets are slowly thawing, and as investors picked up battered blue chips
Singapore <.FTSTI> led gains, rising 3.2 percent aided by property stocks, Indonesia <.JKSE> gained 2 percent on telcos, while the Thai index <.SETI> was 0.9 percent higher in late trade on energy and banks.
Malaysia <.KLSE> edged 0.5 percent higher, but the Philippine index <.PSI> gave up 1.7 percent and Vietnamese shares <.VNI> declined 3.1 percent on worries over bleaker economic conditions.
DJI Daily: holding ground
DJI manage to hold ground and rebound with triple digit gains. Market looks may due for short term correction. Thus, we now look for the support at 8718. Upside resistance is at 9427-9448 followed by 9628 level.
Monday, October 20, 2008
FCPO Daily: in range trading
Market stuck in range bound mode after the recent sell down to 2-year low. Looks may extend its range trading in near term. We currently look for the support at 1593 while upside resistance is at 1727-1734 (gap left over since 15 Oct, 2008)followed by 1798-1825 (gap left over on 14 Oct, 2008).
Trader's Comment: Palm oil futures recover from last Friday’s losses in the midst of uncertainty and recession fears.
Palm oil futures recover from last Friday’s losses in the midst of uncertainty and recession fears. Benchmark Jan 09 initially open RM64 higher at 1699, after US crude oil ended $2 higher at above $70 level, coupled with higher e-CBOT in Asian time zone. News that government world-wide injecting capital into the financial markets, and also expectations that OPEC oil ministers may decide to cut oil production in their next week’s emergency meeting, had helped lift some bullish sentiment in the local commodity market. CPO prices then “float” at a steady pace to hover between the narrow range of 1690-1718 level for the whole morning session. Nevertheless, players are still cautious on the fundamentals beneath the current market conditions, such as slowing global demand and oversupply of stock in China and India. Prices then easing off and dived to 1660 after it hit intra day high of 1727 in the early part of the afternoon session. Private cargo surveyor SGS released its weaker 1-20 Oct export data also provided some selling pressures onto the market. However, prices then rebounded back to around 1700 level again before it closed at 1677, up by RM42. Daily volume remain good, with 10,189 contracts changed hands.
FKLI Daily: rebound from early losses
FKLI rebound and recover from early losses following market defended well at 888.5. Looks may due for correction in near term. We look for the immediate downside support at 888. For upside, resistance is at 931-944 (gap left over since 15 Oct, 2008).
KLSE Daily: survive at 900 mark
KLSE hits the fresh low at 888.28 in intra-day basis but manage to bounce back to close above 900 mark with a long lower shadow canlde printed. Market looks may due for correction and looking to trade in range between 888 to 930 in near term.
Breaking News-RTRS-Palm seen at 1,600 ringgit on weak economies-Mistry
KUALA LUMPUR, Oct 17 - Malaysian crude palm oil futures are likely to hover at 1,600 ringgit per tonne as long as oil prices trade around $80 a barrel amid a slowdown in the global economy, top industry analyst Dorab Mistry said on Friday. Mistry said palm oil at 1,600 ringgit -- slightly more than a third above the break even point for mid-size plantation firms -- was also thanks to bumper harvests in top producers Malaysia and Indonesia while Asian demand cooled.
He said prospects of palm getting channeled into biofuels could be slim unless prices continue to stay low for at least 8 to 10 weeks because margins are always erased when traders start locking in positions in anticipation of higher demand.
"If crude oil is trading at or below $80 and the prognosis is for a weak economy and lower prices, then palm oil needs to get ahead of the curve and to demonstrate its price competitiveness," Mistry said in a speech to be delivered at an industry conference in China.
He said prospects of palm getting channeled into biofuels could be slim unless prices continue to stay low for at least 8 to 10 weeks because margins are always erased when traders start locking in positions in anticipation of higher demand.
"If crude oil is trading at or below $80 and the prognosis is for a weak economy and lower prices, then palm oil needs to get ahead of the curve and to demonstrate its price competitiveness," Mistry said in a speech to be delivered at an industry conference in China.
Trader's Highlight
DJI-NEW YORK, Oct 17 -U.S. stocks fell on Friday on weakness in manufacturing and financial stocks after bleak data on consumer confidence and construction, but the Dow still snapped a disastrous three-week losing streak with it best weekly gain in more than 5 years.
It was a week marked by extreme volatility, and Friday's trading was no different, with stocks swinging back and forth between positive and negative territory. A big afternoon rally was snuffed out in the last hour of trading as uncertainty took hold before the weekend.
The Dow Jones industrial average fell 127.04 points, or 1.41 percent, to 8,852.22, while the Standard & Poor's 500 Index dropped 5.88 points, or 0.62 percent, to 940.55. The Nasdaq Composite Index slipped 6.42 points, or 0.37 percent, to 1,711.29.
NYMEX-NEW YORK, Oct 17 - U.S. crude futures ended $2 higher on Friday on expectations that OPEC's emergency meeting
next week would decide to cut the group's output and as stocks on Wall Street rose sharply.
When they meet Oct. 24, OPEC oil ministers are leaning towards cutting production by 1-1.5 million barrels per day, the United Arab Emirates' news agency WAM said on Friday, citing an OPEC source.
On the New York Mercantile Exchange, November crude settled up $2, or 2.86 percent, at $71.85 a barrel, trading from $69.84 to $74.30. A bout of late pre-weekend profit-taking pared gains.
CBOT SOYBEANS - November up 27 cents at $8.94 per bushel; January up 26-1/2 at $9.06-3/4.
Short covering after this week's drop to a 14-month low. Robust export sales add support, along with strength in crude oil and upturn in U.S. stock market.
SOYOIL - December up 0.05 cent at 35.50 cents per lb. Buoyed by strength in soybeans and crude oil.
FCPO-JAKARTA, Oct 17 - Malaysian palm oil futures gave up gains of more than 3 percent to finish lower on Friday, unsettled by fears that a global recession will cut demand, traders said.
The early rally was mainly driven by a rebound in crude oil prices in Asian trade after a 6 percent drop on Thursday.
"People are lacking confidence in the upside despite oil's recovery. People are more concerned about the global economy, so sentiment is still bearish," a trader at a commodity brokerage in Malaysia said.
The benchmark January contract on the Bursa Malaysia Derivatives Exchange closed down 16 ringgit, or 0.97 percent, to 1,635 ringgit ($463) a tonne.
REGIONAL MARKET-SINGAPORE, Oct 17 - Most Southeast Asian stock markets fell to fresh multi-year lows on Friday as concerns over an impending global recession added further pressure on banks reeling from the credit crisis.
Losses were widespread, but the region's investors were given some reprieve from the heart-stopping share price swings seen earlier in the week.
Singapore slipped 3.7 percent, closing at a four-year low, while Indonesian shares fell 4.4 percent to their lowest close in more than 26 months.
Malaysian shares ended down 1.6 percent after hitting their lowest since July 2006, while the Philippine index shed 1.1 percent to end the week flat.
Thai shares fell 1.3 percent, while Vietnamese stocks dipped 0.6 percent on Friday but the two markets were the only ones to gain slightly this week.
It was a week marked by extreme volatility, and Friday's trading was no different, with stocks swinging back and forth between positive and negative territory. A big afternoon rally was snuffed out in the last hour of trading as uncertainty took hold before the weekend.
The Dow Jones industrial average fell 127.04 points, or 1.41 percent, to 8,852.22, while the Standard & Poor's 500 Index dropped 5.88 points, or 0.62 percent, to 940.55. The Nasdaq Composite Index slipped 6.42 points, or 0.37 percent, to 1,711.29.
NYMEX-NEW YORK, Oct 17 - U.S. crude futures ended $2 higher on Friday on expectations that OPEC's emergency meeting
next week would decide to cut the group's output and as stocks on Wall Street rose sharply.
When they meet Oct. 24, OPEC oil ministers are leaning towards cutting production by 1-1.5 million barrels per day, the United Arab Emirates' news agency WAM said on Friday, citing an OPEC source.
On the New York Mercantile Exchange, November crude
CBOT SOYBEANS - November up 27 cents at $8.94 per bushel; January up 26-1/2 at $9.06-3/4.
Short covering after this week's drop to a 14-month low. Robust export sales add support, along with strength in crude oil and upturn in U.S. stock market.
SOYOIL - December up 0.05 cent at 35.50 cents per lb. Buoyed by strength in soybeans and crude oil.
FCPO-JAKARTA, Oct 17 - Malaysian palm oil futures gave up gains of more than 3 percent to finish lower on Friday, unsettled by fears that a global recession will cut demand, traders said.
The early rally was mainly driven by a rebound in crude oil prices in Asian trade after a 6 percent drop on Thursday.
"People are lacking confidence in the upside despite oil's recovery. People are more concerned about the global economy, so sentiment is still bearish," a trader at a commodity brokerage in Malaysia said.
The benchmark January contract on the Bursa Malaysia Derivatives Exchange closed down 16 ringgit, or 0.97 percent, to 1,635 ringgit ($463) a tonne.
REGIONAL MARKET-SINGAPORE, Oct 17 - Most Southeast Asian stock markets fell to fresh multi-year lows on Friday as concerns over an impending global recession added further pressure on banks reeling from the credit crisis.
Losses were widespread, but the region's investors were given some reprieve from the heart-stopping share price swings seen earlier in the week.
Singapore slipped 3.7 percent, closing at a four-year low, while Indonesian shares fell 4.4 percent to their lowest close in more than 26 months.
Malaysian shares ended down 1.6 percent after hitting their lowest since July 2006, while the Philippine index shed 1.1 percent to end the week flat.
Thai shares fell 1.3 percent, while Vietnamese stocks dipped 0.6 percent on Friday but the two markets were the only ones to gain slightly this week.
Friday, October 17, 2008
Trader's Comment: CPO futures prices ended in a negative territory after a volatile trading day.
CPO futures prices ended in a negative territory after a volatile trading day. Overnight crude oil had fell below $70 level and settled at $69.85, but it rebounded back sharply during early Asian trading time. This had resulted in Benchmark Jan 09 to open RM43 higher at 1694. Nevertheless, the overall market sentiment is still in a bearish mood and full with uncertainty causes today’s market to trade in a roller-coaster manner. Jan09 fell to the morning session low of 1629 immediately after market open, and then rebounded back to hit intra day high at 1705 in the afternoon session. Comments made by top industry analyst added on to the already weak market sentiment, after he said that CPO prices may have to hover around RM1600 for some time to increase demand and clear surplus stocks. Benchmark Jan09 later fell back from the day high to hit intra day low at 1620, before it settled slightly higher at 1635, down by RM16. Daily volume remain good with 10,894 contracts changed hands.
FCPO Weekly: struggling at 1600
Market struggle to survive at 1600 after hit 2-year low at 1593. We currently look for the immediate support at 1593 followed by 1510-1500. For upside, resistance is at 1897-1934.
FKLI Weekly: 900 mark fail to defend !
900 mark failed to defend! Looks market may want to challenge the next support at 870 followed by 860 level. Upside resistance is at 985-990.
USD/MYR Weekly: Further weaken to broke 3.520 level
MYR/USD weaken further tested and cracked the overhead resistance at 3.520 level. With the trend remain weak, looks like it is heading for the 2nd overhead resistance price of 3.580 to 3.590.
NYMEX Crude: In sliding mood
Crude oil continues to tumble and appear in sliding mood. It had broke most of the support, should be heading for immediate support at 64.00-65.00 follow by 55.00 to 57.00.
CBOT Soyoil: Pitfall
Soyoil prices came tumbling down like no tomorrow, targeting 33.00 to 34.00 level follow by 28.00-29.00. The chart just looks ugly.
Comex Gold: Consolidation Phase
Gold prices likely to consolidate further between the wide range of 780 to 900-910. It appears to be a sideway market in near term.
KLSE Weekly: hits 2-year low
Market tumble to hit 2-year low.Looks is heading to test 900 physiological support level. Next support level is at 880. For upside, resistance is at 970-1000.
FCPO Hourly: jump to cover some of upside gap
Market reversed after yesterday sharp drop to 2-year low. Prices surged to intra-day high at 1700 and hovering most at 1650-1680. As for now, we look for the immediate support at 1593. For upside, resistance is at 1700-1743 (remaining gap left over since 6th Oct, 2008).
FKLI Hourly: covered partial of upside gap left over
FKLI covered partial of the upside gap left over since 15th Oct, 2008. The immediate support is at 906 followed by 900. For upside, resistance is at 931-944 (gap left over since 15th Oct, 2008).
KLSE Hourly: bear took a little breathe
Bear took a little breathe after yesterday sell down. Immediate support is pegged at 912.0 followed by 900. While, upside resistance is at 932-946 (gap left over yesterday).
Trader's Highlight
DJI-NEW YORK, Oct 16 (Reuters) - U.S. stocks jumped in a late surge on Thursday, as investors snapped up battered stocks a day after Wall Street's worst session since the 1987 crash, while oil slid below $70 a barrel for the first time since August 2007.
Major European stock indexes fell about 5.0 percent and U.S. stocks swung wildly, shedding more than 4.0 percent before midday after a Federal Reserve survey showed U.S. Mid-Atlantic factory activity crashed to an 18-year low in October.
U.S. stocks surged in the last hour of trading, a volatile pattern seen in other recent sessions, as investors snapped up beaten-down shares a day before stock options expire.
The Dow Jones industrial average <.DJI> closed up 401.35 points, or 4.68 percent, at 8,979.26. The Standard & Poor's 500 Index <.SPX> gained 38.59 points, or 4.25 percent, at 946.43. The Nasdaq Composite Index <.IXIC> climbed 89.38 points, or 5.49 percent, at 1,717.71.
NYMEX-NEW YORK, Oct 16 (Reuters) - U.S. crude futures settled more than 6 percent lower on Thursday, ending below $70 a barrel after weekly government inventory data showed crude oil and gasoline supplies rose much higher than expected last week,
reflecting sliding demand.
On the New York Mercantile Exchange, November crude fell $4.69, or 6.29 percent, to settle at $69.85 a barrel,trading from $68.57 -- lowest since $67.07 was struck on June 27, 2007 -- to $74.50.
CBOT-SOYBEANS - November up 9 cents at $8.67 per bushel.
Short covering amid oversold technicals lifted prices as did talk China may be seeking soy. Soy early fell to a 13-1/2 month low on recession worries and spillover pressure from weak outside markets.
CBOT-SOYOIL - December down 0.08 cent at 35.45 cents per lb.
Bouncing from early lows as other markets recovered some amid economic turmoil.
FCPO-JAKARTA, Oct 16 (Reuters) - Malaysian crude palm futures dropped to their lowest in two years on Thursday, tracking sliding crude oil prices and amid worries that an accelerating economic slowdown will cut demand, traders said.
The benchmark January contract on the Bursa Malaysia Derivatives Exchange closed 97 ringgit, or 5.55 percent lower, at 1,651 ringgit ($468) per tonne by the close. The contract earlier fell as low as 1,593 ringgit a tonne, the lowest since Oct. 17, 2006.
REGIONAL EQUITIES-SINGAPORE, Oct 16 (Reuters) - Southeast Asian markets fell on
Thursday, wiping out recent gains as fears over how the global recession will impact earnings took centre stage, with banking shares among the top fallers.
Singapore's benchmark Straits Times index <.FTSTI> tumbled by more than 7 percent intraday but pared losses to close 5.3 percent down. Malaysia <.KLSE>, which has been outperforming the region, fell 3.3 percent to a 2-year low.
The Philippine index <.PSI> fell 5.2 percent, while Vietnam <.VNI> ended three days of gains to fall 3.2 percent.Indonesian shares <.JKSE> also marked a fresh two-year low, falling 4.6 percent, while Thai stocks <.SETI> were down 1.5 percent at 0940 GMT.
Major European stock indexes fell about 5.0 percent and U.S. stocks swung wildly, shedding more than 4.0 percent before midday after a Federal Reserve survey showed U.S. Mid-Atlantic factory activity crashed to an 18-year low in October.
U.S. stocks surged in the last hour of trading, a volatile pattern seen in other recent sessions, as investors snapped up beaten-down shares a day before stock options expire.
The Dow Jones industrial average <.DJI> closed up 401.35 points, or 4.68 percent, at 8,979.26. The Standard & Poor's 500 Index <.SPX> gained 38.59 points, or 4.25 percent, at 946.43. The Nasdaq Composite Index <.IXIC> climbed 89.38 points, or 5.49 percent, at 1,717.71.
NYMEX-NEW YORK, Oct 16 (Reuters) - U.S. crude futures settled more than 6 percent lower on Thursday, ending below $70 a barrel after weekly government inventory data showed crude oil and gasoline supplies rose much higher than expected last week,
reflecting sliding demand.
On the New York Mercantile Exchange, November crude
CBOT-SOYBEANS - November
Short covering amid oversold technicals lifted prices as did talk China may be seeking soy. Soy early fell to a 13-1/2 month low on recession worries and spillover pressure from weak outside markets.
CBOT-SOYOIL - December
Bouncing from early lows as other markets recovered some amid economic turmoil.
FCPO-JAKARTA, Oct 16 (Reuters) - Malaysian crude palm futures dropped to their lowest in two years on Thursday, tracking sliding crude oil prices and amid worries that an accelerating economic slowdown will cut demand, traders said.
The benchmark January contract
REGIONAL EQUITIES-SINGAPORE, Oct 16 (Reuters) - Southeast Asian markets fell on
Thursday, wiping out recent gains as fears over how the global recession will impact earnings took centre stage, with banking shares among the top fallers.
Singapore's benchmark Straits Times index <.FTSTI> tumbled by more than 7 percent intraday but pared losses to close 5.3 percent down. Malaysia <.KLSE>, which has been outperforming the region, fell 3.3 percent to a 2-year low.
The Philippine index <.PSI> fell 5.2 percent, while Vietnam <.VNI> ended three days of gains to fall 3.2 percent.Indonesian shares <.JKSE> also marked a fresh two-year low, falling 4.6 percent, while Thai stocks <.SETI> were down 1.5 percent at 0940 GMT.
DJI Daily: technicial rebound
DJI rebounded after its worst day since 1987. Prices managed to hold ground and rebound after tested the support at 8462 in intra-day basis. Thus, we now look for the support at 7882. Upside resistance remained at 9628 followed by 9794 level.
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