Wednesday, December 31, 2008
Trader's Comment: Palm oil futures finished with a positive tone for the last day of the year
Palm oil futures finished with a positive tone for the last day of the year after recovered from its early losses. Benchmark Mar09 initially opened RM29 lower at 1642 and hit the intra day low of 1639 following overnight NYMEX crude oil fell below $40 coupled with easier CBOT soy oil. However, it was well supported and began to climb back slowly through out the day. The release of December exports data by private cargo surveyor SGS in the afternoon session which posted an increase of 22.2% sent CPO prices to rally higher. Benchmark Mar09 continue to surge and finally settled at the intra day high of 1695. Export data by the other private cargo surveyor ITS is scheduled to be released on Friday.
Announcement:: Closure of Bursa
Bursa Malaysia will be closed on the following dates in conjunction with:-
New Year, 1st Jan 2009 (Thursday)
We wish all our clients and associates Merry Christmas & Happy New Year.
New Year, 1st Jan 2009 (Thursday)
We wish all our clients and associates Merry Christmas & Happy New Year.
Trader's Highlight
DJI-NEW YORK, Dec 30 - U.S. stocks climbed on Tuesday after the government expanded its bailout of the auto industry, bolstering hopes lawmakers would continue to take steps to minimize the severity of the year-long recession.
The Dow Jones industrial average rose 184.46 points, or 2.17 percent, to 8,668.39. The Standard & Poor's 500 Index gained 21.21 points, or 2.44 percent, to 890.63. The Nasdaq Composite Index added 40.38 points, or 2.67 percent, to 1,550.70.
NYMEX-NEW YORK, Dec 30 - U.S. crude oil futures fell in choppy, pre-holiday trading on Tuesday as fears about demand in a slowing economy offset concerns about tensions in the Middle East and the effect of OPEC's upcoming production cut.
On the New York Mercantile Exchange, February crude fell 99 cents, or 2.47 percent, to settle at $39.03 a barrel, trading from $37.93 to $40.39.
CBOT-SOYBEANS - January up 7-1/4 cents at $9.45-3/4 a bushel, March up 7-1/2 cents at $9.53 a bushel.
Choppy trading day amid very thin volume. Profit-taking weighed on soy as did weak crude oil. However, weak dollar and weather concerns in South America lifted prices.
SOYOIL - January down 0.10 cent at 32.11 cents a pound, March off 0.11 cent at 32.42 cents a pound.
Falls along with drop in crude oil prices.
FCPO-JAKARTA, Dec 30 - Malaysian palm futures rose more than 5 percent on Tuesday to finish at a 10-week high on expectations of stronger December palm oil exports, traders said.
The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange rose 81 ringgit, or 5.1 percent, to 1,671 ringgit ($480) per tonne, the highest close since Oct. 21.
REGIONAL EQUITIES-BANGKOK, Dec 30 - Southeast Asian stocks closed mainly higher on Tuesday, but after huge losses in 2008 shares across the region are expected to fall further next year due to the global economic slowdown.
Market turnover on Tuesday was light and buying interest came mainly from funds and others engaged in window-dressing at the end of the year, analysts said.
Singapore's Straits Times Index bucked the trend on Tuesday, erasing a small gain to a one-week high in early trade to close down 0.56 percent.
The Malaysian stock index climbed 1.65 percent, with Tenaga Nasional surging 4.1 percent and IOI Corp rising 2.3 percent.
In Bangkok, the main index ended the final trading day of the year with a gain of 0.73 percent to its highest since Dec. 19 after new Prime Minister Abhisit Vejjajiva finally evaded protesters to make his maiden policy speech.
The Dow Jones industrial average rose 184.46 points, or 2.17 percent, to 8,668.39. The Standard & Poor's 500 Index gained 21.21 points, or 2.44 percent, to 890.63. The Nasdaq Composite Index added 40.38 points, or 2.67 percent, to 1,550.70.
NYMEX-NEW YORK, Dec 30 - U.S. crude oil futures fell in choppy, pre-holiday trading on Tuesday as fears about demand in a slowing economy offset concerns about tensions in the Middle East and the effect of OPEC's upcoming production cut.
On the New York Mercantile Exchange, February crude fell 99 cents, or 2.47 percent, to settle at $39.03 a barrel, trading from $37.93 to $40.39.
CBOT-SOYBEANS - January up 7-1/4 cents at $9.45-3/4 a bushel, March up 7-1/2 cents at $9.53 a bushel.
Choppy trading day amid very thin volume. Profit-taking weighed on soy as did weak crude oil. However, weak dollar and weather concerns in South America lifted prices.
SOYOIL - January down 0.10 cent at 32.11 cents a pound, March off 0.11 cent at 32.42 cents a pound.
Falls along with drop in crude oil prices.
FCPO-JAKARTA, Dec 30 - Malaysian palm futures rose more than 5 percent on Tuesday to finish at a 10-week high on expectations of stronger December palm oil exports, traders said.
The benchmark March palm oil contract
REGIONAL EQUITIES-BANGKOK, Dec 30 - Southeast Asian stocks closed mainly higher on Tuesday, but after huge losses in 2008 shares across the region are expected to fall further next year due to the global economic slowdown.
Market turnover on Tuesday was light and buying interest came mainly from funds and others engaged in window-dressing at the end of the year, analysts said.
Singapore's Straits Times Index bucked the trend on Tuesday, erasing a small gain to a one-week high in early trade to close down 0.56 percent.
The Malaysian stock index climbed 1.65 percent, with Tenaga Nasional surging 4.1 percent and IOI Corp rising 2.3 percent.
In Bangkok, the main index ended the final trading day of the year with a gain of 0.73 percent to its highest since Dec. 19 after new Prime Minister Abhisit Vejjajiva finally evaded protesters to make his maiden policy speech.
Tuesday, December 30, 2008
Trader's Comment: CPO futures rallied strongly extending its gain for the 3rd consecutive days
CPO futures rallied strongly extending its gain for the 3rd consecutive days. Benchmark Mar09 immediately hit the morning high of 1661 after opened RM35 higher at 1625 following a higher Asian time crude oil in the early trade continuing from its overnight gains. It then began to ease off after some profit taking activities took place. Benchmark Mar09 turned lower and hit 1634 in the early part of second session. Nevertheless, the “bull” gained back its strength again and sent CPO prices to bounce back and rallied higher without looking back. It finally settled at the intra day high of 1671. Traders were also speculating on the exports data which is due to be released tomorrow, expecting some strong figure from it.
Trader's Highlight
DJI- NEW YORK, Dec 29 - Violence in the Middle East drove up the price of oil on Monday on worries about threats to crude supplies and fueled a bid for safe-haven government debt.
U.S. stocks fell as Kuwait's decision to scrap a $17.4 billion joint venture with Dow Chemical highlighted fears about the global economy, even as the higher oil prices drove up energy shares.
The Dow Jones industrial average fell 31.62 points, or 0.37 percent, at 8,483.93. The Standard & Poor's 500 Index lost 3.38 points, or 0.39 percent, at 869.42. The Nasdaq Composite Index declined 19.92 points, or 1.30 percent, at 1,510.32.
NYMEX- NEW YORK, Dec 29 - U.S. crude oil futures rose amid volatile trading on Monday, lifted by fighting in Gaza, a weaker dollar, China's intent to add to its strategic petroleum reserve and bargain hunting, sources said.
On the New York Mercantile Exchange, February crude rose $2.31, or 6.13 percent, to settle at $40.02 a barrel, trading from $37.53 to $42.20.
CBOT - SOYBEANS - January down 13-1/4 cents at $9.38-1/2 bushel, March off 11 cents at $9.45-1/2 a bushel.
Falls as traders lock in profits following rally to near 3-month high.
SOYOIL - January off 0.61 cent at 32.21 cents a pound, March down 0.59 cent at 32.53 cents a pound.
Weakened by downturn in soybean futures.
FCPO - KUALA LUMPUR, Dec 26 - Malaysian crude palm oil futures finished 1.99 percent higher on Friday supported by strong exports and gains in crude oil prices.
Exports of Malaysian palm oil products for Dec. 1-25 rose 24 percent to 1,345,325 tonnes from 1,087,865 tonnes shipped between Nov. 1 and 25, cargo surveyor Intertek Testing Services said on Friday.
The benchmark March 2009 contract on Bursa Malaysia's Derivatives Exchange ended up 31 ringgit at 1,590 ringgit ($456.9) per tonne. Gains in other traded months ranged between 20 ringgit and 35 ringgit.
REGIONAL EQUITIES - BANGKOK, Dec 29 - Singapore shares hit a one-week high on Monday, pushed up by financials and property shares such as DBS and Capitaland, while Thai stocks reversed losses and ended higher for a third day despite renewed political turmoil.
Singapore's Straits Times Index rose 3.2 percent to close at its highest level since Dec. 22, while the main Thai index inched up 0.02 percent, building on a 1.7 percent gain over the past two days.
U.S. stocks fell as Kuwait's decision to scrap a $17.4 billion joint venture with Dow Chemical highlighted fears about the global economy, even as the higher oil prices drove up energy shares.
The Dow Jones industrial average fell 31.62 points, or 0.37 percent, at 8,483.93. The Standard & Poor's 500 Index lost 3.38 points, or 0.39 percent, at 869.42. The Nasdaq Composite Index declined 19.92 points, or 1.30 percent, at 1,510.32.
NYMEX- NEW YORK, Dec 29 - U.S. crude oil futures rose amid volatile trading on Monday, lifted by fighting in Gaza, a weaker dollar, China's intent to add to its strategic petroleum reserve and bargain hunting, sources said.
On the New York Mercantile Exchange, February crude rose $2.31, or 6.13 percent, to settle at $40.02 a barrel, trading from $37.53 to $42.20.
CBOT - SOYBEANS - January down 13-1/4 cents at $9.38-1/2 bushel, March off 11 cents at $9.45-1/2 a bushel.
Falls as traders lock in profits following rally to near 3-month high.
SOYOIL - January off 0.61 cent at 32.21 cents a pound, March down 0.59 cent at 32.53 cents a pound.
Weakened by downturn in soybean futures.
FCPO - KUALA LUMPUR, Dec 26 - Malaysian crude palm oil futures finished 1.99 percent higher on Friday supported by strong exports and gains in crude oil prices.
Exports of Malaysian palm oil products for Dec. 1-25 rose 24 percent to 1,345,325 tonnes from 1,087,865 tonnes shipped between Nov. 1 and 25, cargo surveyor Intertek Testing Services said on Friday.
The benchmark March 2009 contract on Bursa Malaysia's Derivatives Exchange ended up 31 ringgit at 1,590 ringgit ($456.9) per tonne. Gains in other traded months ranged between 20 ringgit and 35 ringgit.
REGIONAL EQUITIES - BANGKOK, Dec 29 - Singapore shares hit a one-week high on Monday, pushed up by financials and property shares such as DBS and Capitaland, while Thai stocks reversed losses and ended higher for a third day despite renewed political turmoil.
Singapore's Straits Times Index rose 3.2 percent to close at its highest level since Dec. 22, while the main Thai index inched up 0.02 percent, building on a 1.7 percent gain over the past two days.
Friday, December 26, 2008
Trader's Comment: Palm oil futures extended yesterday’s gain on strong export figures.
Palm oil futures extended yesterday’s gain on strong export figures. Benchmark Mar09 opened RM3 higher at 1562 following overnight CBOT soy complex settled slightly higher coupled with the rebound of Asian time crude oil in the early trade. It then immediately surged to the morning high of 1586 before some profit taking activities emerged and sent prices to ease off a little to 1571 by midday. The release of 1-25 Dec export data by both private cargo surveyors had provided a firm support on CPO prices. ITS and SGS posted an increase of 23.7% and 23.5% respectively. Benchmark Mar09 began to bounce back after second session resumed trading and continued to rally higher to intra day high of 1596 before it finally settled RM31 higher at 1590. Trading remained quiet ahead of long weekend, as market will be closed on Monday for Awal Muharam.
Breaking News-RTRS-Some Argentine farmers relaunch anti-government protests.
BUENOS AIRES, Dec 23 (Reuters) - A group of Argentine farmers sporadically blocked a rural highway on Tuesday in protest against government farm policy, returning to methods used during a four-month-long conflict earlier this year.
The protest took place a day after President Cristina Fernandez announced a series of measures benefiting the sector, which did not include a highly anticipated reduction in export taxes on the country's top crop, soy.
The protest took place a day after President Cristina Fernandez announced a series of measures benefiting the sector, which did not include a highly anticipated reduction in export taxes on the country's top crop, soy.
Breaking News-RTRS--Indonesia keeps January palm oil export tax
JAKARTA, Dec 25 (Reuters) - Indonesia is maintaining its zero
percent palm oil export tax in January, while it will raise crude
palm oil base export price to $418 a tonne from $415 a tonne in
December, the trade ministry said late on Wednesday.
The moves are effective from Jan 1 to end of January.
The new base price is far below the minimum reference price
for palm oil export tax, which has been raised to $700 a tonne
from $550.
percent palm oil export tax in January, while it will raise crude
palm oil base export price to $418 a tonne from $415 a tonne in
December, the trade ministry said late on Wednesday.
The moves are effective from Jan 1 to end of January.
The new base price is far below the minimum reference price
for palm oil export tax, which has been raised to $700 a tonne
from $550.
Trader's Highlight
DJI-NEW YORK, Dec 24 (Reuters) - One final hurrah, or gasp given the grim global economic conditions, pushed U.S. stocks to a positive close before the Christmas break on Wednesday, but other markets fell, with crude oil slumping 9 percent on the economic outlook.
Stocks in Europe and Asia fell in thin trading volumes, led down by energy pharmaceutical and automotive shares. European and U.S. stock markets closed early.
U.S. stock markets closed at 1 p.m. (1800 GMT). The Dow Jones industrial average <.DJI> gained 48.91 points, or 0.58 percent, to 8,468.40. The Standard & Poor's 500
Index <.SPX> rose 4.91 points, or 0.57 percent, to 868.07. The Nasdaq Composite Index <.IXIC> edged higher, up 3.36 points, or 0.22 percent, to 1,524.90.
NYMEX-NEW YORK, Dec 24 (Reuters) - U.S. crude oil futures fell 9.31 percent on Wednesday in a shortened session as the dreary economy picture offset a government report showing an unexpected drop in crude oil inventories last week.
On the New York Mercantile Exchange, February crude fell $3.63, or 9.31 percent, to settle at $35.35 a barrel, trading from $35.13, a contract low, to $39.69.
CBOT-SOYBEANS - January up 14-3/4 cents at $9.15-3/4 per bushel; March up 14 at $9.19.
CBOT-SOYOIL - January up 0.10 cent per lb at 31.31 cents. Choppy, range-bound session. Caught between firmer soybeans market and weaker crude oil.
FCPO-KUALA LUMPUR, Dec 24 (Reuters) - Malaysian crude palm oil futures ended 1.9 percent higher on Wednesday as traders closed their positions ahead of the Christmas holiday.
The benchmark March 2009 on Bursa Malaysia's Derivatives Exchange closed 29 ringgit higher at 1,559 ringgit ($448.9) per tonne. Gains in other traded months <0#KPO:> ranged between 22 ringgit and 30 ringgit. Overall trade dropped to 3,573 lots of 25 tonnes each from the usual 5,000 lots.
REGIONAL EQUITIES-Malaysian shares <.KLSE> extended their three-day falling streak to end 0.18 percent at an one-week closing low, weighed down by a 0.85 percent fall in Bumiputra Commerce Holdings.
Elsewhere in the region, Indonesia stocks <.JKSE> eased 0.53 percent, while the Philippine index <.PSI> climbed 0.57 percent and Vietnam <.VNI> inched up 0.04 percent, recovering from a 2 percent fall on Tuesday. The Straits Time index <.FTSTI> ended 0.72 percent higher, rebounding after three straight days of losses.
Stocks in Europe and Asia fell in thin trading volumes, led down by energy pharmaceutical and automotive shares. European and U.S. stock markets closed early.
U.S. stock markets closed at 1 p.m. (1800 GMT). The Dow Jones industrial average <.DJI> gained 48.91 points, or 0.58 percent, to 8,468.40. The Standard & Poor's 500
Index <.SPX> rose 4.91 points, or 0.57 percent, to 868.07. The Nasdaq Composite Index <.IXIC> edged higher, up 3.36 points, or 0.22 percent, to 1,524.90.
NYMEX-NEW YORK, Dec 24 (Reuters) - U.S. crude oil futures fell 9.31 percent on Wednesday in a shortened session as the dreary economy picture offset a government report showing an unexpected drop in crude oil inventories last week.
On the New York Mercantile Exchange, February crude
CBOT-SOYBEANS - January
CBOT-SOYOIL - January
FCPO-KUALA LUMPUR, Dec 24 (Reuters) - Malaysian crude palm oil futures ended 1.9 percent higher on Wednesday as traders closed their positions ahead of the Christmas holiday.
The benchmark March 2009
REGIONAL EQUITIES-Malaysian shares <.KLSE> extended their three-day falling streak to end 0.18 percent at an one-week closing low, weighed down by a 0.85 percent fall in Bumiputra Commerce Holdings
Elsewhere in the region, Indonesia stocks <.JKSE> eased 0.53 percent, while the Philippine index <.PSI> climbed 0.57 percent and Vietnam <.VNI> inched up 0.04 percent, recovering from a 2 percent fall on Tuesday. The Straits Time index <.FTSTI> ended 0.72 percent higher, rebounding after three straight days of losses.
DJI Daily: not much of Christmas cheer
Market stayed firm with bias sideways to downside potential. We continue to look for the support at 8372-8347 followed by 8118-8140. while, upside resistance is at 8600-8680 level.
KLSE Daily: remains sideways to bias little upside potential
Market maintain its sideways to bias little upside potential posture despite it close lower before a Christmas break. As for now, we continue to look for the resistance at 873-874 followed by 880. Immediate downside support is pegged at 862 followed by 858-853.
FKLI Daily: in range trading
Market took a little breathe ahead of Christmas holiday as prices stuck in range trading. We continue look for the support at 863.5-862.5 followed by 853.5-850. For upside, resistance is at 876.5-879 followed by 890.
FCPO Daily: 1500 mark stay firm
Market remains firm above 1500 mark in a dull trading day. Looks 1500-1600 range likely to continue in near term. Upside resistance maintain at 1596-1600. Downside support is pegged at 1509-1487
Wednesday, December 24, 2008
Trader's Comment: CPO futures surged higher in late trading amid market talk on good export data.
CPO futures surged higher in late trading amid market talk on good export data. Benchmark Mar09 initially opened RM9 higher at 1539 tracking some slight rebound of Asian time crude oil in the early trade after it fell overnight. It hit the morning high of 1561 but was dragged down again due to lack of follow through buying activities and thereafter trading in a range between 1555-1535 through out the morning session. Nevertheless, market sentiment slightly improved after second session resume trading as Benchmark Mar09 was well supported above 1545 level. It started to climb slowly in the last hour of trading to hit intra day high of 1564 before it finally settled RM29 higher at 1559. Rumors that 1-25 Dec export figures, which are due to release tomorrow, may achieve 1.35 million tonnes had also provided some supportive sentiment in the market.
Breaking News-RTRS-China quarantine warns on US soybean import quality
BEIJING, Dec 23 (Reuters) - China's quarantine bureau has warned the United States over the quality of imported soybeans after finding traces of harmful pesticides in one U.S. soy cargo, the bureau said in a statement on Tuesday.
The warning comes as China's government faces calls for import curbs because state purchases have pushed up prices and cheap imports have flooded the domestic market.
The warning comes as China's government faces calls for import curbs because state purchases have pushed up prices and cheap imports have flooded the domestic market.
Trader's Highlight
DJI-NEW YORK, Dec 23 (Reuters) - U.S. stocks fell in thin trading on Tuesday on further deterioration in the housing market, while worry over weak consumer spending hurt retailers in the final stretch of the Christmas shopping season.
The Dow Jones industrial average <.DJI> lost 100.28 points, or 1.18 percent, to 8,419.49. The Standard & Poor's 500 Index <.SPX> slid 8.47 points, or 0.97 percent, to 863.16. The Nasdaq Composite Index <.IXIC> shed 10.81 points, or 0.71
percent, to 1,521.54. Markets will close early on Wednesday for Christmas Eve.
NYMEX-NEW YORK, Dec 23 (Reuters) - U.S. crude futures fell on Tuesday as concerns about falling demand in a weak economy continued to weigh on oil prices.
Trading was volatile as early lift from a weak dollar evaporated and weak economic data kept fears about sliding demand in a recession economy in focus.
On the New York Mercantile Exchange, February crude fell 93 cents, or 2.33 percent, to settle at $38.98 a barrel, trading from $37.79, a contract low, to $40.65.
CBOT-SOYBEANS - January up 14-1/2 cents at $9.01 a bushel. Market rallies to $9.00 strike price in January options. Concerns about dryness in South America and strong cash markets amid slow farmer sales and good export business with China underpinning soy market.
U.S. November soybean crush was 144.64 million bushels, according to Census Department data. Analysts had been expecting crushings between 145.5 and 146.5 million bushels.
CBOT-SOYOIL - January up 0.27 cent at 31.21 cents per lb. Choppy in thin holiday-type trade. Weakness in crude weighs.
November soyoil stocks were 2.562 billion pounds, Census said.
FCPO-KUALA LUMPUR, Dec 23 (Reuters) - Malaysian crude palm oil futures fell 3.6 percent on Tuesday, extending midday losses as the market tracked declines in other vegetable oils and crude prices hovered below $40 a barrel.
The benchmark March 2009 contract on Bursa Malaysia's Derivatives Exchange fell 58 ringgit to 1,530 Malaysia ringgit ($441.8) per tonne. Falls in other traded months <0#KPO:> ranged between 45 ringgit and 58 ringgit. Overall trade fell to 8,722 lots of 25 tonnes each from the usual 10,000 lots.
REGIONAL EQUITIES-BANGKOK, Dec 23 (Reuters) - Most Southeast Asian stock markets fell on Tuesday amid signs of a deepening economic slump and as investors locked in profits ahead of the year-end holidays.
Singapore's benchmark Straits Time Index <.FTSTI> fell 1.2 percent to its lowest close since Dec. 5, with DBS Group, Southeast Asia's largest bank, slipping 3.5 percent and palm oil giant Wilmar sliding 5.8 percent.
Indonesia's main stock index <.JKSE> drifted 0.12 percent lower at the close after earlier touching 1,323.49 points, its lowest since Dec. 15.
Malaysia's main stock index <.KLSE> fell for a third day, down 0.3 percent, as palm plantation firm Kuala Lumpur Kepong dropped 2.2 percent and energy services firm KNM Group lost 3.7 percent.
The Dow Jones industrial average <.DJI> lost 100.28 points, or 1.18 percent, to 8,419.49. The Standard & Poor's 500 Index <.SPX> slid 8.47 points, or 0.97 percent, to 863.16. The Nasdaq Composite Index <.IXIC> shed 10.81 points, or 0.71
percent, to 1,521.54. Markets will close early on Wednesday for Christmas Eve.
NYMEX-NEW YORK, Dec 23 (Reuters) - U.S. crude futures fell on Tuesday as concerns about falling demand in a weak economy continued to weigh on oil prices.
Trading was volatile as early lift from a weak dollar evaporated and weak economic data kept fears about sliding demand in a recession economy in focus.
On the New York Mercantile Exchange, February crude
CBOT-SOYBEANS - January
U.S. November soybean crush was 144.64 million bushels, according to Census Department data. Analysts had been expecting crushings between 145.5 and 146.5 million bushels.
CBOT-SOYOIL - January
November soyoil stocks were 2.562 billion pounds, Census said.
FCPO-KUALA LUMPUR, Dec 23 (Reuters) - Malaysian crude palm oil futures fell 3.6 percent on Tuesday, extending midday losses as the market tracked declines in other vegetable oils and crude prices hovered below $40 a barrel.
The benchmark March 2009
REGIONAL EQUITIES-BANGKOK, Dec 23 (Reuters) - Most Southeast Asian stock markets fell on Tuesday amid signs of a deepening economic slump and as investors locked in profits ahead of the year-end holidays.
Singapore's benchmark Straits Time Index <.FTSTI> fell 1.2 percent to its lowest close since Dec. 5, with DBS Group
Indonesia's main stock index <.JKSE> drifted 0.12 percent lower at the close after earlier touching 1,323.49 points, its lowest since Dec. 15.
Malaysia's main stock index <.KLSE> fell for a third day, down 0.3 percent, as palm plantation firm Kuala Lumpur Kepong
DJI Daily: pre-Christmas mood
Market weakened further as players were in pre-Christmas mood. For downside, support remains at 8118-8140. while, upside resistance is at 8600-8680 level.
KLSE Daily: defended well
Market was trying to defend with a late session rebound to close at 870 mark. We maintain our view on sideways to little bias upside potential in near term market. Continue to look for the resistance at 880. Downside support is pegged at 858-853.
FKLI Daily: Surprise !!
Market gives a surprise move with prices manage to recoup from early losses to end in positive territory. Support at 869.5-865 was tested in intra-day basis. As for now,we look for the next support at 863.5-862.5. For upside, resistance is at 891.5-897.5.
FCPO Daily: ranging between 1500-1600
Market fully covered the downside gap at 1569-1548 to end at day low yet it manage to stay firm at 1500 mark. Market likely to continue its rangy mode in near term. For upside, resistance is at 1596-1600. Downside support is pegged at 1509-1487
Tuesday, December 23, 2008
Trader's Comment: Palm oil futures fell broadly lower amid weaker Asian time global vegeoil.
Palm oil futures fell broadly lower amid weaker Asian time global vegeoil. Benchmark Mar09 merely hit the intra day high of 1569 after opened RM20 lower at 1568 following overnight NYMEX crude oil dropped to below $40 level again. It then fell to 1557 but managed to support as it hovered between 1560-1565 level through out the whole morning session. However, inadequate follow through buying activities saw CPO prices began to sell down after second session resumed trading. Lower eCBOT soy oil and Dalian palm coupled with further drop of Asian time crude oil sent Benchmark Mar09 continue to fall and settled at intra day low of 1530. Market tone was not as firm as yesterday due to position squaring ahead of the coming holiday season.
Announcement: Closure of Bursa
Bursa Malaysia will be closed on the following dates in conjunction with:-
Christmas Day, 25th December 2008 (Thursday)
Awal Muharram, 29th December 2008 (Monday)
New Year, 1st Jan 2009 (Thursday)
We wish all our clients and associates Merry Christmas & Happy New Year.
Christmas Day, 25th December 2008 (Thursday)
Awal Muharram, 29th December 2008 (Monday)
New Year, 1st Jan 2009 (Thursday)
We wish all our clients and associates Merry Christmas & Happy New Year.
Breaking News-RTRS-UPDATE 1-Argentina offers farmers tax breaks, but not on soy
BUENOS AIRES, Dec 22 (Reuters) - President Cristina Fernandez announced tax cuts on Monday to help the country's farm sector weather the global economic downturn, but kept levies on Argentina's biggest agricultural export, soy, unchanged.
FCPO Daily: bored
Market looks bored as prices remains in sideways move with stuck in the range of 1500 to 1600 level. We now look for the immediate support at 1569-1548 (gap left over yesterday) followed by 1509. For upside, resistance is at 1630-1635.
FKLI Daily: disappointed bull
Disappointed bull following market gave up all its early gains to end lower. Looks market is facing tough resistance at 897.5-900 mark. For downside, support is at 869.5-865.
KLSE Daily: Santa taking break?
Santa looks taking a break after the last week rally. We maintain our view on sideways to little bias upside potential in near term market. For now, look for the resistance at 888. Downside support is pegged at 868-867.
DJI Daily: looks tiredness
Market looks tiredness after few attempts failed to break through 9000 mark. We now look for the support and resistance at 8118-8140 and 8950-9000 level respectively.
Trader's Highlight
DJI-NEW YORK, Dec 22 (Reuters) - U.S. stocks slid on Monday on more evidence the year-long recession will keep eating into corporate profits, while retailers tumbled on worry the holiday shopping season could be the worst in nearly 40 years.
The Dow Jones industrial average <.DJI> fell 59.42 points, or 0.69 percent, to 8,519.69. The Standard & Poor's 500 Index <.SPX> was down 16.25 points, or 1.83 percent, at 871.63. The Nasdaq Composite Index <.IXIC> gave up 31.97 points, or 2.04
percent, at 1,532.35.
NYMEX-NEW YORK, Dec 22 (Reuters) - U.S. crude oil futures fell nearly 6 percent on Monday, slumping on demand concerns as the February contract took over as front-month following January's Friday expiration at the lowest settlement in over four years. On the New York Mercantile Exchange, February crude fell $2.45, or 5.78 percent, to settle at $39.91 a barrel, trading from $39.74 a contract low, to $43.44.
January crude expired on Friday at $33.87 a barrel, the lowest settlement for front-month crude since Feb. 10, 2004, when it ended at the same level. It fell to $32.40 intraday -- lowest since $32.25 struck Feb. 9, 2004.
CBOT-SOYBEANS - January up 18-1/4 cents at $8.86-1/2 a bushel. Rallied as traders unwound corn/soy spreads put on earlier. Strong U.S. cash markets as farmer sales not keeping up with export program out of the U.S. Gulf added support along with dryness in parts of South America.
U.S. Census Bureau to issue its monthly crush data on Tuesday. Analysts were expecting November soybean crushings between 145.5 and 146.5 million bushels.
CBOT-SOYOIL - January up 0.34 cent at 30.94 cents per lb. Following soybeans higher.
FCPO-KUALA LUMPUR, Dec 22 (Reuters) - Malaysian crude palm oil futures rose 3.4 percent on Monday as crude oil earlier clawed back some of its losses, lifting vegetable oil markets from China to the United States.
The benchmark March 2009 settled up 52 ringgit at 1,588 ringgit ($456.3) per tonne. Other traded months rose between 22 and 61 ringgit in overall traded volume of 8,003 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Dec 22 (Reuters) - Most Southeast Asian stocks fell on Monday despite a bailout for U.S. auto makers, although trading was generally quiet due to the looming year-end holidays.
In a week shortened by the Christmas holiday and amid lacklustre trade, Singapore <.FTSTI> ended down 2.78 percent, Thailand <.SETI> shed 2.89 percent, and Malaysia <.KLSE> eased 0.34 percent.
The Philippines <.PSI> touched a 4-week low before closing down 3.3 percent, Indonesia <.JKSE> dropped 0.22 percent, but Vietnam <.VNI>, Southeast Asia's worst performing market, ended 0.9 percent higher.
The Dow Jones industrial average <.DJI> fell 59.42 points, or 0.69 percent, to 8,519.69. The Standard & Poor's 500 Index <.SPX> was down 16.25 points, or 1.83 percent, at 871.63. The Nasdaq Composite Index <.IXIC> gave up 31.97 points, or 2.04
percent, at 1,532.35.
NYMEX-NEW YORK, Dec 22 (Reuters) - U.S. crude oil futures fell nearly 6 percent on Monday, slumping on demand concerns as the February contract took over as front-month following January's Friday expiration at the lowest settlement in over four years. On the New York Mercantile Exchange, February crude
January crude
CBOT-SOYBEANS - January
U.S. Census Bureau to issue its monthly crush data on Tuesday. Analysts were expecting November soybean crushings between 145.5 and 146.5 million bushels.
CBOT-SOYOIL - January
FCPO-KUALA LUMPUR, Dec 22 (Reuters) - Malaysian crude palm oil futures rose 3.4 percent on Monday as crude oil earlier clawed back some of its losses, lifting vegetable oil markets from China to the United States.
The benchmark March 2009
REGIONAL EQUITIES-BANGKOK, Dec 22 (Reuters) - Most Southeast Asian stocks fell on Monday despite a bailout for U.S. auto makers, although trading was generally quiet due to the looming year-end holidays.
In a week shortened by the Christmas holiday and amid lacklustre trade, Singapore <.FTSTI> ended down 2.78 percent, Thailand <.SETI> shed 2.89 percent, and Malaysia <.KLSE> eased 0.34 percent.
The Philippines <.PSI> touched a 4-week low before closing down 3.3 percent, Indonesia <.JKSE> dropped 0.22 percent, but Vietnam <.VNI>, Southeast Asia's worst performing market, ended 0.9 percent higher.
Monday, December 22, 2008
Trader's Comment: CPO futures ended broadly higher after “floating” in a higher range.
CPO futures ended broadly higher after “floating” in a higher range. Benchmark mar09 opened RM44 higher at 1580 tracking the strong gains in eCBOT soy oil and Dalian palm in the early trade. It hit the intra day low of 1569 but was well supported and managed to continue to trade in a higher range between 1575-1595 level through out most of the sessions. Traders seem confident in the FCPO market especially after the release of strong export data by both private cargo surveyors. SGS, closely watched by market players put 1-20 Dec export up 31.49% over same period in November had boosted the players’ confidence. Benchmark Mar09 rallied to hit intra day high of 1596 in the early second session but it retreated back into the range until it finally settled RM52 higher at 1588. The rebound in Asian time crude oil after overnight January contract of NYMEX light crude expired sharply lower had helped to provide some supportive sentiment in the market.
Breaking News-RTRS-China to keep importing soy on lower prices -survey
BEIJING, Dec 19 (Reuters) - Chinese crushers in the north were seen continuing to import soybeans briskly despite a pickup of Chicago Board of Trade prices, since domestic soy remained expensive, an official survey showed.
"Crushers in the north would not shift to crush domestic soybeans unless U.S futures prices rise to more than $9.80 (per bushel)," the China National Grain and Oils Information Centre (CNGOIC) said in a report.
"Crushers in the north would not shift to crush domestic soybeans unless U.S futures prices rise to more than $9.80 (per bushel)," the China National Grain and Oils Information Centre (CNGOIC) said in a report.
Breaking News-RTRS-UPDATE 1-Indonesia to keep palm oil export tax at zero
JAKARTA, Dec 19 (Reuters) - Indonesia will keep its palm oil export tax at zero in January due to low global palm oil prices, a senior trade ministry official said on Friday.
But it may raise slightly base export price for curde palm oil by $3 to $418 a tonne in January from December, Diah Maulida, director general of foreign trade at the trade ministry said.
But it may raise slightly base export price for curde palm oil by $3 to $418 a tonne in January from December, Diah Maulida, director general of foreign trade at the trade ministry said.
Trader's Highlight
DJI-NEW YORK, Dec 19 (Reuters) - The S&P 500 and Nasdaq rose on Friday after the U.S. government said it would throw a $17.4 billion lifeline to automakers grappling with falling consumer demand.
But the Dow ended lower, pulled down by another fall in energy shares, including Chevron and Exxon Mobil as oil sank for the sixth day in a row on fears the anemic economy will swamp demand.
NYMEX-NEW YORK, Dec 19 (Reuters) - U.S. crude oil futures ended more than 6 percent lower on Friday in volatile trading as the expiring front-month January contract was pressured by the weak economy that has slowed demand and brimming storage.
On the New York Mercantile Exchange, expiring January crude fell $2.35, or 6.49 percent, to settle at $33.87 a barrel, the lowest settlement for front-month crude since Feb. 10, 2004 when it ended at the same level.
Friday's trading range was from $32.40 -- the lowest since $32.25 struck Feb. 9, 2004 -- to $37.59. February crude rose 69 cents, or 1.66 percent, to
settle at $42.36 a barrel, trading from $40.90 to $43.25.
CBOT-SOYBEANS - January down 1-1/4 cents at $8.68-1/4 a bushel, March down 2 cents to $8.72-1/2 a bushel. Crude oil drop, firm dollar negative for soybean prices.
CBOT-SOYOIL - January down 0.10 cent to 30.60 cents a pound, March off 0.13 cent to 30.91 cents a pound. Weakness in soybeans and dollar strength weighing on soyoil
futures.
FCPO-JAKARTA, Dec 19 (Reuters) - Malaysian palm futures dropped for second day to its weakest level in two weeks, after crude oil touched fresh 4-1/2 year low as demand gloom offset OPEC's record supply cut.
The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange closed down 9 ringgit, or 0.58 percent, at 1,536 ringgit ($443) per tonne.
Other traded contracts were mostly lower, falling between 2 ringgit and 60 ringgit. Overall volume stood at 9,562 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Dec 19 (Reuters) - Major Southeast Asian stocks drifted lower on Friday as the impact of interest rate cuts faded and falling oil prices dragged down plantation and energy shares such as Malaysia's IOI Corp and Thai energy firm PTT.
Among key Southeast Asian indices, Singapore <.FTSTI> eased 0.19 percent, Malaysia <.KLSE> shed 0.47 percent, Thailand <.SETI> fell 1.04 percent and Indonesia <.JKSE> edged 0.26 percent lower.
But the Dow ended lower, pulled down by another fall in energy shares, including Chevron
NYMEX-NEW YORK, Dec 19 (Reuters) - U.S. crude oil futures ended more than 6 percent lower on Friday in volatile trading as the expiring front-month January contract was pressured by the weak economy that has slowed demand and brimming storage.
On the New York Mercantile Exchange, expiring January crude
Friday's trading range was from $32.40 -- the lowest since $32.25 struck Feb. 9, 2004 -- to $37.59. February crude
settle at $42.36 a barrel, trading from $40.90 to $43.25.
CBOT-SOYBEANS - January
CBOT-SOYOIL - January
futures.
FCPO-JAKARTA, Dec 19 (Reuters) - Malaysian palm futures dropped for second day to its weakest level in two weeks, after crude oil touched fresh 4-1/2 year low as demand gloom offset OPEC's record supply cut.
The benchmark March palm oil contract
Other traded contracts were mostly lower, falling between 2 ringgit and 60 ringgit. Overall volume stood at 9,562 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Dec 19 (Reuters) - Major Southeast Asian stocks drifted lower on Friday as the impact of interest rate cuts faded and falling oil prices dragged down plantation and energy shares such as Malaysia's IOI Corp and Thai energy firm PTT.
Among key Southeast Asian indices, Singapore <.FTSTI> eased 0.19 percent, Malaysia <.KLSE> shed 0.47 percent, Thailand <.SETI> fell 1.04 percent and Indonesia <.JKSE> edged 0.26 percent lower.
FKLI Weekly: Year end rally
A good closing for the week had neutralised the immediate weekly outlook. Market cheers up as bull keep on with its fight spirit for year end rally. Market looks may want to move sideways to upside potential in near term. We now look for the Support at 839-845. While, immediate resistance is at 900 followed by 924-927.
KLSE Weekly: Santa is coming to town
Market improves following immediate resistance at 868-869 was violated completely. Looks market may want to move sideways to bias upside potential in near term. We now looking the support at 835-830. For upside, resistance is at 900 followed by 923-931.
DJI Weekly: Directionless
Market continue to trade in range and directionless. We continue to look for the support at 8000 mark. For upside, resistance maintains at 9026-9043.
FCPO Weekly: Remains same posture
Market was holding firm and looks may continue to build up base. We continue to look for support at 1396-1331. Upside resistance is at 1692-1727.
Friday, December 19, 2008
Trader's Comment:Palm oil futures ended to inch lower
Palm oil futures ended to inch lower in a "yo-yo" trading day. Benchmark Mar09 opened RM20 lower at 1525 following overnight NYMEX crude oil settled at fresh 4-1/2 year low at $35.98 coupled with lower CBOT soy oil. It managed to cover yesterday's left over gap when it hit the morning high at 1540 immediately after market opened, but then fell back again to hover between 1525-1510 level. Some short covering activities appeared in the early part of second session sent Benchmark Mar09 to climb to intra day high at 1548. However, it eased off due to lack of follow through buying. Later it settled RM9 lower at 1536. Trading seems to be more and more quiet as holiday season is approaching nearer.
Trader's Highlight
DJI-NEW YORK, Dec 18 - Fears of a worsening U.S. economy drove yields on long-dated government bonds to fresh 50-year lows and led Standard & Poor's on Thursday to warn that it could cut General Electric's top credit rating, pushing Wall Street sharply lower.
Signs of economic duress were visible throughout financial markets, with U.S. crude prices dropping more than 9 percent to $36 a barrel and investors accelerating a safe-haven scramble into the relative safety of government securities.
Oil's slide overshadowed an agreement on a record output cut on Wednesday by members of the Organization of Petroleum Exporting Countries, while the International Energy Agency said the market's fixation on falling demand was unlikely to end soon.
The Dow Jones industrial average closed down 219.35 points, or 2.49 percent, at 8,604.99. The Standard & Poor's 500 Index fell 19.08 points, or 2.11 percent, at 885.34. The Nasdaq Composite Index slipped 26.94 points, or 1.71 percent, at 1,552.37.
NYMEX-NEW YORK, Dec 18 - U.S. crude oil futures fell more than 9 percent on Thursday, settling at nearly a 4-1/2-year low, as concern about slumping demand and rising inventories offset OPEC's big output cut.
On the New York Mercantile Exchange, January crude fell $3.84, or 9.59 percent, to settle at $36.22 a barrel, lowest since June 29, 2004, when it closed at $35.66, according to Reuters data.
CBOT - SOYBEANS - January up 5-1/2 cents to $8.69-1/2 a bushel. March up 5-1/2 to $8.74-1/2.
Nearbys underpinned by very strong CIF market at U.S. Gulf for soybeans amid a lack of farmer sales coupled with strong Chinese demand for U.S. soy. Overhanging market weakness in crude oil and soyoil.
CBOT-SOYOIL - January down 0.30 cent to 30.70 cents per pound.
Pressed by falling crude oil but off early lows as crude bounces from early lows.
FCPO-JAKARTA, Dec 18 - Malaysian palm futures lost more than 2 percent on Thursday after crude oil hit its weakest level in more than four years despite OPEC's biggest ever production cut.
The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange dropped 35 ringgit, or 2.22 percent, to 1,545 ringgit ($447) per tonne.
REGIONAL EQUITIES-BANGKOK, Dec 17 - Most Southeast Asian stocks gained on Wednesday, cheered by a rate cut by the U.S. Federal Reserve, with Sime Darby pushing Malaysia to a two-week high and Thai shares up for a seventh day as the political climate calmed.
The big U.S. rate cut fuelled further buying of regional blue chips initially, but markets ended below the highs as doubts set in over what lower interest rates could really do to turn around the global economy.
Singapore's benchmark Straits Times Index drifted 0.16 percent lower at the close, after a brief 1.7 percent rise to a near one-week high in morning trade, with gainers including CapitaLand , which rose 2.5 percent.
In Kuala Lumpur, the benchmark index closed up 0.9 percent. Southeast Asia's best-performing market this year earlier touched its highest since Dec. 1, with gainers including Sime Darby , up 3.8 percent.
Thailand's main stock index ended up a mere 0.14 percent after earlier climbing 2.5 percent to its highest since Nov. 11. Improved political sentiment has driven the Thai market up by 12.7 percent in the past six days.
Indonesia's main index gained 1.6 percent, ending slightly below its intra-day high of 1,376.10, its highest since Nov. 5, with Telkom Indonesia up 2.8 percent and Indosat 2.05 percent higher.
Signs of economic duress were visible throughout financial markets, with U.S. crude prices dropping more than 9 percent to $36 a barrel and investors accelerating a safe-haven scramble into the relative safety of government securities.
Oil's slide overshadowed an agreement on a record output cut on Wednesday by members of the Organization of Petroleum Exporting Countries, while the International Energy Agency said the market's fixation on falling demand was unlikely to end soon.
The Dow Jones industrial average closed down 219.35 points, or 2.49 percent, at 8,604.99. The Standard & Poor's 500 Index fell 19.08 points, or 2.11 percent, at 885.34. The Nasdaq Composite Index slipped 26.94 points, or 1.71 percent, at 1,552.37.
NYMEX-NEW YORK, Dec 18 - U.S. crude oil futures fell more than 9 percent on Thursday, settling at nearly a 4-1/2-year low, as concern about slumping demand and rising inventories offset OPEC's big output cut.
On the New York Mercantile Exchange, January crude fell $3.84, or 9.59 percent, to settle at $36.22 a barrel, lowest since June 29, 2004, when it closed at $35.66, according to Reuters data.
CBOT - SOYBEANS - January up 5-1/2 cents to $8.69-1/2 a bushel. March up 5-1/2 to $8.74-1/2.
Nearbys underpinned by very strong CIF market at U.S. Gulf for soybeans amid a lack of farmer sales coupled with strong Chinese demand for U.S. soy. Overhanging market weakness in crude oil and soyoil.
CBOT-SOYOIL - January down 0.30 cent to 30.70 cents per pound.
Pressed by falling crude oil but off early lows as crude bounces from early lows.
FCPO-JAKARTA, Dec 18 - Malaysian palm futures lost more than 2 percent on Thursday after crude oil hit its weakest level in more than four years despite OPEC's biggest ever production cut.
The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange dropped 35 ringgit, or 2.22 percent, to 1,545 ringgit ($447) per tonne.
REGIONAL EQUITIES-BANGKOK, Dec 17 - Most Southeast Asian stocks gained on Wednesday, cheered by a rate cut by the U.S. Federal Reserve, with Sime Darby pushing Malaysia to a two-week high and Thai shares up for a seventh day as the political climate calmed.
The big U.S. rate cut fuelled further buying of regional blue chips initially, but markets ended below the highs as doubts set in over what lower interest rates could really do to turn around the global economy.
Singapore's benchmark Straits Times Index drifted 0.16 percent lower at the close, after a brief 1.7 percent rise to a near one-week high in morning trade, with gainers including CapitaLand , which rose 2.5 percent.
In Kuala Lumpur, the benchmark index closed up 0.9 percent. Southeast Asia's best-performing market this year earlier touched its highest since Dec. 1, with gainers including Sime Darby , up 3.8 percent.
Thailand's main stock index ended up a mere 0.14 percent after earlier climbing 2.5 percent to its highest since Nov. 11. Improved political sentiment has driven the Thai market up by 12.7 percent in the past six days.
Indonesia's main index gained 1.6 percent, ending slightly below its intra-day high of 1,376.10, its highest since Nov. 5, with Telkom Indonesia up 2.8 percent and Indosat 2.05 percent higher.
Thursday, December 18, 2008
Trader's Comment: CPO futures ended lower on weak market sentiment.
CPO futures ended lower on weak market sentiment. Benchmark Mar09 hit the intra day low of 1539 after opened RM21 lower at 1559 following overnight easier CBOT soy oil while crude oil fell to hit fresh 4 year low at $39.88. However, CPO prices were well supported and thereafter hovered in a tight range of 1555-1545 for the remaining morning session. Some short covering activities began to emerge when afternoon session resumes and sent Benchmark Mar09 to climb back gradually. It hit the intra day high of 1575 before it was finally sold down again to settle RM35 lower at 1545. Market tone was still in a cautious mood and remained in range trading. Meanwhile CPO prices seem to be experiencing some slight decoupling from the effect of crude oil movement.
Breaking News-RTRS-UPDATE 1-Argentina cuts wheat output, soy area forecasts
BUENOS AIRES, Dec 17 (Reuters) - Argentina's Agriculture Secretariat on Wednesday slashed its estimate for 2008/09 wheat production to 9 million tonnes from the 10.1 million tonnes it forecast last month, due mainly to the impact of dry weather.
The outlook for the country's top crop, soybeans, is also slightly less favorable. The government cut its forecast for 2008/09 soybean seeding area to 17.8 million hectares (44 million acres), from 18.0 million hectares last month.
The outlook for the country's top crop, soybeans, is also slightly less favorable. The government cut its forecast for 2008/09 soybean seeding area to 17.8 million hectares (44 million acres), from 18.0 million hectares last month.
Breaking News-RTRS-UPDATE 6-OPEC makes deepest oil cut ever to rescue prices
ORAN, Algeria, Dec 17 (Reuters) - OPEC oil ministers agreed their deepest output cut ever on Wednesday, cutting 2.2 million barrels per day from oil markets in a race to balance supply with rapidly crumbling demand for fuel.
The cut, effective Jan. 1, comes atop existing curbs of 2 million bpd agreed by OPEC since September. It lowers the supply target for the 11 members bound by output limits to 24.845 million bpd -- down nearly 15 percent from September output.
The cut, effective Jan. 1, comes atop existing curbs of 2 million bpd agreed by OPEC since September. It lowers the supply target for the 11 members bound by output limits to 24.845 million bpd -- down nearly 15 percent from September output.
Breaking News-RTRS-UPDATE 1-Chrysler says to shut down all production for month
DETROIT, Dec 17 (Reuters) - Citing a credit crisis and dwindling sales, Chrysler LLC on Wednesday said it would shut down all of its manufacturing operations from the end of this week for at least a month.
The blanket shutdown marked a deepening of the financial crisis for the embattled U.S. auto industry and came as Chrysler and its larger rival General Motors Corp both seek to shore up cash as they seek a federal bailout they say they need to survive.
The blanket shutdown marked a deepening of the financial crisis for the embattled U.S. auto industry and came as Chrysler and its larger rival General Motors Corp
Breaking News-RTRS-UPDATE 7-Morgan Stanley posts big loss; market hopes worst over
NEW YORK, Dec 17 (Reuters) - Morgan Stanley reported a much wider-than-expected $2.2 billion quarterly loss on Wednesday on plummeting markets and poor trading moves, while banking and brokerage fees sank.
It was the bank's second loss in the last five quarters, and six times deeper than expected, driven by a laundry list of setbacks: $1.7 billion in writedowns of leveraged buyout loans, $800 million in writedowns of assets held in bank units and $1.8 billion in principal investment losses.
It was the bank's second loss in the last five quarters, and six times deeper than expected, driven by a laundry list of setbacks: $1.7 billion in writedowns of leveraged buyout loans, $800 million in writedowns of assets held in bank units and $1.8 billion in principal investment losses.
Trader's Highlight
DJI-NEW YORK, Dec 17 (Reuters) - U.S. stocks fell on Wednesday as the government's effort to stave off a deep economic recession raised worries about mounting public debt and blunted optimism following the Fed's sharp rate cut on Tuesday.
The Dow Jones industrial average <.DJI> shed 99.80 points, or 1.12 percent, to 8,824.34. The Standard & Poor's 500 Index <.SPX> fell 8.76 points, or 0.96 percent, to 904.42. The Nasdaq Composite Index <.IXIC> fell 10.58 point, or 0.67 percent, to
1,579.31.
Financial stocks were unable to sustain their gains despite an analyst note that said Morgan Stanley's poor results announced on Wednesday were not likely to be repeated.
NYMEX-NEW YORK, Dec 17 (Reuters) - Oil prices dropped to their lowest in more than four years on Wednesday after OPEC announced a record supply cut that dealers said may fail to fully offset slumping world energy demand.
U.S. crude oil prices fell $3.54 to settle at $40.06 a barrel after dipping below $40 for first time since July 2004. London Brent fell $1.12 to $45.53.
The Organization of the Petroleum Exporting Countries, eager to push prices back up, announced on Wednesday an agreement to cut 2.2 million barrels per day of output starting Jan. 1, the biggest single reduction on record.
CBOT-SOYBEANS - January up 5-1/2 cents to $8.64 a bushel. Began moving higher after Argentina denied studying cut to soy export taxes. Soy also supported by falling dollar and dry weather in Argentina.
CBOT-SOYOIL - January down 0.35 cent at 31.00 cents/lb. Turns lower as crude oil slid. Soymeal/soyoil spreading noted in late trade.
FCPO-JAKARTA, Dec 17 (Reuters) - Malaysian palm futures rose more than 2 percent on Wednesday, boosted by a rally in crude oil, sparked by expectations OPEC will agree a deep cut in oil output to rescue prices.
The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange rose 35 ringgit, or 2.27 percent, to 1,580 ringgit ($448) per tonne.
Other traded contracts rose between 34 and 55 ringgit. The overall volume was thin at 6,905 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Dec 17 (Reuters) - Most Southeast Asian stocks gained on Wednesday, cheered by a rate cut by the U.S. Federal Reserve, with Sime Darby pushing Malaysia to a two-week high and Thai shares up for a seventh day as the political climate calmed.
Singapore's benchmark Straits Times Index <.FTSTI> drifted 0.16 percent lower at the close. In Kuala Lumpur, the benchmark index <.KLSE> closed up 0.9 percent.
Thailand's main stock index <.SETI> ended up a mere 0.14 percent. Indonesia's main index <.JKSE> gained 1.6 percent, ending slightly below its intra-day high of 1,376.10.
The Dow Jones industrial average <.DJI> shed 99.80 points, or 1.12 percent, to 8,824.34. The Standard & Poor's 500 Index <.SPX> fell 8.76 points, or 0.96 percent, to 904.42. The Nasdaq Composite Index <.IXIC> fell 10.58 point, or 0.67 percent, to
1,579.31.
Financial stocks were unable to sustain their gains despite an analyst note that said Morgan Stanley's
NYMEX-NEW YORK, Dec 17 (Reuters) - Oil prices dropped to their lowest in more than four years on Wednesday after OPEC announced a record supply cut that dealers said may fail to fully offset slumping world energy demand.
U.S. crude oil prices
The Organization of the Petroleum Exporting Countries, eager to push prices back up, announced on Wednesday an agreement to cut 2.2 million barrels per day of output starting Jan. 1, the biggest single reduction on record.
CBOT-SOYBEANS - January
CBOT-SOYOIL - January
FCPO-JAKARTA, Dec 17 (Reuters) - Malaysian palm futures rose more than 2 percent on Wednesday, boosted by a rally in crude oil, sparked by expectations OPEC will agree a deep cut in oil output to rescue prices.
The benchmark March palm oil contract
Other traded contracts rose between 34 and 55 ringgit. The overall volume was thin at 6,905 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Dec 17 (Reuters) - Most Southeast Asian stocks gained on Wednesday, cheered by a rate cut by the U.S. Federal Reserve, with Sime Darby pushing Malaysia to a two-week high and Thai shares up for a seventh day as the political climate calmed.
Singapore's benchmark Straits Times Index <.FTSTI> drifted 0.16 percent lower at the close. In Kuala Lumpur, the benchmark index <.KLSE> closed up 0.9 percent.
Thailand's main stock index <.SETI> ended up a mere 0.14 percent. Indonesia's main index <.JKSE> gained 1.6 percent, ending slightly below its intra-day high of 1,376.10.
FKLI Daily: may move sideways to bias upside potential
Immediate daily technical landscape looks brighten up following prices stayed firm at 870 level. Potential of sideways to bias upside potential is there if market manage to maintain its fighting spirit. To the upside, we are looking the resistance at 876.5-877 followed by 891-891.5. While, downside support is pegged at 853.5-850.
KLSE Daily: improve a little
Market improved a little following 858-860 immediate resistance was violated after stuck in sideways for some times. Looks market may want to challenge again the gap left over since 19/11/2008 at 869-876 level. For downside, support is pegged at 857-855 (gap left over yesterday).
DJI Daily: gain ease off
Lack of follow through after the day with triple digit gain and eased off to end lower. We still maintain our sideways to little upside potential view in near term market. Currently, continue to look at the resistance at 9000-9160. For downside, support is remains at 8347-8335.
FCPO Daily: holding at 1500 mark
Market continues to hold at 1500 mark and recover a little from yesterday losses. looks market may extend its sideways move with immediate support remains at 1520-1500 followed by 1487-1475. For upside, immediate resistance is at 1600-1610 followed by 1630-1640.
Wednesday, December 17, 2008
Trader's Comment: Palm oil futures ended broadly higher in late trading.
Palm oil futures ended broadly higher in late trading. Benchmark Mar09 initially hit the morning high of 1583 after opened RM16 higher at 1561 following overnight strong closing in CBOT. However, lack of follow through buying activities saw CPO prices to ease off and began to trade in a range between 1575-1555 level through out the day. Slight selling off activities seen in early 2nd session sent Benchmark Mar09 to hit intra day low at 1548 but was well supported and immediately pulled back into the range. Statement by Oil World analyst that said palm oil prices are likely to rise in coming months had helped to provide some buying support in the market. Late intra day covering and speculative buys ahead of OPEC meeting today saw prices climbed and hit intra day high at 1586 before it settled RM35 higher at 1580. Total daily volume was moderate with 6905 contracts changed hands.
Breaking News-RTRS-Palm oil to pull edible oil prices upwards-Oil World
HAMBURG, Dec 16 (Reuters) - Global palm oil prices are likely to rise in coming months and will help strengthen other vegetable oil markets, Hamburg-based oilseeds analyst Oil World said on Tuesday.
"We forecast prices of crude palm oil (cif Rotterdam) will increase to $660 in Jan/June 2009," it said in a weekly report. Cif Rotterdam crude palm oil prices are now around $500 a tonne.
"We forecast prices of crude palm oil (cif Rotterdam) will increase to $660 in Jan/June 2009," it said in a weekly report. Cif Rotterdam crude palm oil prices are now around $500 a tonne.
Breaking News-RTRS-HK central bank cuts base rate by 100 basis points
HONG KONG, Dec 17 (Reuters) - The Hong Kong Monetary Authority on Wednesday lowered the base rate charged through its overnight discount window by 100 basis points to 0.50 percent.
Breaking News-RTRS-UPDATE 2-Pimco's El-Erian: Unintended consequences from Fed move
NEW YORK, Dec 16 (Reuters) - The CEO of bond giant PIMCO hailed the Federal Reserve's cut of its main U.S. interest rate target as low as zero as an "extremely bold policy response" but warned of possible unintended consequences.
Aggressive moves by the U.S. central bank could send the U.S. currency under tremendous pressure and could result in even further disarray in capital markets, Mohamed El-Erian told Reuters on Tuesday.
Aggressive moves by the U.S. central bank could send the U.S. currency under tremendous pressure and could result in even further disarray in capital markets, Mohamed El-Erian told Reuters on Tuesday.
Trader's Highlight
DJI-NEW YORK, Dec 16 (Reuters) - U.S. stocks rallied on Tuesday after the Federal Reserve rewrote its playbook by slashing borrowing costs to a record low, even zero, and pledging more unconventional steps to fight the deepest recession in generations.
Banks led the charge higher, spurred both by the Fed's move to cap its target lending rate at a quarter percentage point and by a quarterly loss from Wall Street icon Goldman Sachs that was not as gruesome as many feared.
The Dow Jones industrial average <.DJI> rose 359.61 points, or 4.20 percent, to 8,924.14. The Standard & Poor's 500 Index <.SPX> jumped 44.61 points, or 5.14 percent, to 913.18. The Nasdaq Composite Index <.IXIC> climbed 81.55 points, or 5.41 percent, to 1,589.89.
NYMEX-NEW YORK, Dec 16 (Reuters) - U.S. crude oil futures ended 2 percent lower on Tuesday as concerns about the economy after the Federal Reserve cut its target for overnight interest rates trumped the weak dollar and OPEC's intent to cut oil output.
All the news is supportive, OPEC and the weak dollar, yet oil coming back off tells you the bears are still in control," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc.
On the New York Mercantile Exchange, January crude fell 91 cents, or 2.04 percent, to settle at $43.60 a barrel, trading from $42.56 to $46.53.
CBOT-SOYBEANS - January up 12-1/2 cents to $8.58-1/2 a bushel, March up 13-1/2 to $8.63.
Dry weather in Argentina, the world's third largest soy exporter, supporting prices in addition to tight stocks of soy.
CBOT-SOYOIL - January up 0.80 cent to 31.35 cents a lb, March up 0.80 cent at 31.71. Following soybeans.
FCPO-JAKARTA, Dec 16 (Reuters) - Malaysian palm futures finished at a one-week low on Tuesday after falling for the third day in a row in the absence of any fresh news to renew buying interest, traders said.
The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange settled down 35 ringgit, or 2.22 percent, at 1,545 ringgit ($435) per tonne.
Other traded contracts fell between 31 and 36 ringgit. The overall volume was 9,676 lots of 25 tonnes each.
REGIONAL EQUITIES-Southeast Asian markets elsewhere were mixed amid expectations of interest rate cuts by the U.S. Federal Reserve and as a U.S. car sector bailout remained uncertain.
Singapore's benchmark Straits Times Index <.FTSTI> inched up 0.4 percent, after a gain of almost 2 percent on Monday.
In Kuala Lumpur, some analysts said local sentiment turned cautious because of the U.S. markets, but the key share index ended 0.98 percent higher after a 0.68 percent fall on Monday.
Indonesia's main stock index <.JKSE> bucked the trend, sliding 1.2 percent after a 7.63 percent rise on Monday
Banks led the charge higher, spurred both by the Fed's move to cap its target lending rate at a quarter percentage point and by a quarterly loss from Wall Street icon Goldman Sachs
The Dow Jones industrial average <.DJI> rose 359.61 points, or 4.20 percent, to 8,924.14. The Standard & Poor's 500 Index <.SPX> jumped 44.61 points, or 5.14 percent, to 913.18. The Nasdaq Composite Index <.IXIC> climbed 81.55 points, or 5.41 percent, to 1,589.89.
NYMEX-NEW YORK, Dec 16 (Reuters) - U.S. crude oil futures ended 2 percent lower on Tuesday as concerns about the economy after the Federal Reserve cut its target for overnight interest rates trumped the weak dollar and OPEC's intent to cut oil output.
All the news is supportive, OPEC and the weak dollar, yet oil coming back off tells you the bears are still in control," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc.
On the New York Mercantile Exchange, January crude
CBOT-SOYBEANS - January
Dry weather in Argentina, the world's third largest soy exporter, supporting prices in addition to tight stocks of soy.
CBOT-SOYOIL - January
FCPO-JAKARTA, Dec 16 (Reuters) - Malaysian palm futures finished at a one-week low on Tuesday after falling for the third day in a row in the absence of any fresh news to renew buying interest, traders said.
The benchmark March palm oil contract
Other traded contracts fell between 31 and 36 ringgit. The overall volume was 9,676 lots of 25 tonnes each.
REGIONAL EQUITIES-Southeast Asian markets elsewhere were mixed amid expectations of interest rate cuts by the U.S. Federal Reserve and as a U.S. car sector bailout remained uncertain.
Singapore's benchmark Straits Times Index <.FTSTI> inched up 0.4 percent, after a gain of almost 2 percent on Monday.
In Kuala Lumpur, some analysts said local sentiment turned cautious because of the U.S. markets, but the key share index ended 0.98 percent higher after a 0.68 percent fall on Monday.
Indonesia's main stock index <.JKSE> bucked the trend, sliding 1.2 percent after a 7.63 percent rise on Monday
FKLI Daily: tested 865
Market finally tested 865 level and close at day high had drew a little hope for a short term bear rebound. To the upside, we are looking the resistance at 869-871.5 followed by 876.5-877. While, downside support is pegged at 850-842.5.
KLSE Daily: remains same posture
Market remains the same posture and looks market may continue its sideways move in near term. Support is remains at 838-835. Resistance is at 858-860 followed by 864-868.
DJI Daily: triple digit gain
Immediate daily technical outlook looks cheers up a little following a triple digit gain. Resistance at 8827-8879 was violated and market looks may move sideways to bias little upside potential in near term. As for now, we are looking the resistance at 9000-9160. For downside, support is remains at 8347-8335.
FCPO Daily: losing ground
FCPO violated the immediate support at 1560-1556 and close weak had weakened further the technical landscape. Market may continue to move sideways with immediate support now looking at 1520-1500 followed by 1487. For upside, immediate resistance is at 1630-1640.
Tuesday, December 16, 2008
Trader's Comment: CPO futures dully traded in a lower range amid weaker crude oil prices.
CPO futures dully traded in a lower range amid weaker crude oil prices. Benchmark Feb09 hit the intra day low of 1529 after opened RM30 lower at 1550 following a fall in overnight NYMEX crude oil coupled with easier CBOT soy complex. It then traded in a range between 1560-1540 level through out most of the sessions. Some short covering activities appeared in the middle of second session saw CPO prices bounced to intra day high of 1570. Nevertheless, it immediately retreated back into the range due to lack of follow through buying activities. Benchmark Feb09 finally settled RM35 lower at 1545. News that India will import less palm oil due to better winter soybean crop and attractive rival soy oil prices had also provided some selling pressure to the weak market sentiment. Some players were also cautious ahead of FOMC meeting tonight and OPEC meeting tomorrow.
Breaking News-RTRS-UPDATE 1-AIG sells $39.3 bln in assets to NY Fed's fund
NEW YORK, Dec 15 (Reuters) - American International Group , the insurer bailed out by the U.S. government in September, said on Monday it sold $39.3 billion of assets to a fund established by the Federal Reserve Bank of New York.
Breaking News-RTRS-UPDATE 1-Informa sees fewer U.S. corn acres in 2009
CHICAGO, Dec 12 (Reuters) - Analytical firm Informa Economics sees fewer U.S. corn acres for 2009 and more soybeans as the higher cost to plant corn versus soybeans was encouraging farmers to seed soy over corn, trade sources said on Friday.
Informa estimated U.S. corn acreage at 82.288 million and soybeans at 81.455 million, traders said.
Informa estimated U.S. corn acreage at 82.288 million and soybeans at 81.455 million, traders said.
Breaking News-RTRS-US Grain Week - Farmers on alert for price rallies in 2009
CHICAGO, Dec 12 (Reuters) - U.S. farmers will be on alert throughout the winter for any upticks in corn and soybean prices that could provide opportunities for them to sell crops they have been holding since harvest, grain dealers and agricultural economists said.
Breaking News-RTRS-UPDATE 5-Ecuador defaults, says to fight "monster" creditors
GUAYAQUIL, Ecuador, Dec 12 (Reuters) - President Rafael Correa declared a default on Ecuador's foreign sovereign bonds on Friday, vowing to fight "monster" debt-holders in court in one of most aggressive moves against investors in the region for years.
Correa, a U.S.-trained economist and ally of Venezuela's anti-U.S. President Hugo Chavez, refused to make a $31 million interest payment due on Monday on 2012 global bonds, saying the debt was contracted illegally by a previous administration.
Correa, a U.S.-trained economist and ally of Venezuela's anti-U.S. President Hugo Chavez, refused to make a $31 million interest payment due on Monday on 2012 global bonds, saying the debt was contracted illegally by a previous administration.
Breaking News-RTRS-High valuations, earnings to hit Malaysia stocks-Citi
KUALA LUMPUR, Dec 15 (Reuters) - Malaysian equities, one of Asia's top performers, could fall a further 17 percent in 2009 due to sliding economic growth, and earnings of plantations and banks are at high risk, Citigroup said in a note.
Breaking News-RTRS-UPDATE 1-IMF: lower China growth, unprecedented slowdown
MADRID, Dec 15 (Reuters) - The IMF could cut its forecast for Chinese 2009 economic growth to around 5 percent in its next revision as the global economy suffers an unprecedented slowdown, IMF Managing Director Dominique Strauss-Kahn said on Monday.
Trader's Highlight
DJI-NEW YORK, Dec 15 (Reuters) - U.S. stocks stumbled on Monday, roiled by worries about how big a bite the global financial crisis has taken from banks' profits and fallout from a massive investment fraud scheme.
JPMorgan Chase & Co was the biggest drag on the Dow after Merrill Lynch cut the stock to an "underperform" rating and forecast a loss for the bank's fourth quarter.
Another blow to sentiment was concern about the financial sector's exposure to potential losses related to investment manager Bernard Madoff, who is accused by U.S. authorities of masterminding a $50 billion fraud.
The Dow Jones industrial average <.DJI> shed 65.15 points, or 0.75 percent, to end at 8,564.53. The Standard & Poor's 500 Index <.SPX> fell 11.16 points, or 1.27 percent, to 868.57. The Nasdaq Composite Index <.IXIC> dropped 32.38 points, or
2.10 percent, to 1,508.34.
NYMEX-NEW YORK, Dec 15 (Reuters) - U.S. crude oil futures fell on Monday, retreating from an early high above $50 a barrel as Wall Street slumped after a stronger open and refueled concerns about a slowing economy.
On the New York Mercantile Exchange, January crude fell $1.77, or 3.82 percent, to settle at $44.51 a barrel, trading from $44.24 to $50.05.
CBOT-SOYBEANS - January down 8 cents at $8.46 a bushel, March down 6-3/4 cents at $8.49-1/2 a bushel. Turned down when crude oil slipped and soyoil began falling
with additional pressure from trade reports on Friday that Informa Economics forecast 2009 U.S. soy acreage at 81.455 million, up from 75.9 million in 2008.
The National Oilseed Processors Association said November soybean crushings where 139.4 million bushels down from 143.4 million bushels in October.
CBOT-SOYOIL - January down 0.37 cent at 30.55 cents per lb, March down 0.37 at 30.91 cents a pound. Downturn in crude dragged soyoil lower.
U.S. soyoil stocks stood at 2.04 billion pounds, up from 1.98 billion pounds in October, the National Oilseed Processors Association said.
FCPO-JAKARTA, Dec 15 (Reuters) - Malaysian palm futures wiped out gains of 3 percent to end slightly lower on Monday, rattled by fears that exports to India will slow down, traders said.
The benchmark February palm oil contract on the Bursa Malaysia's Derivatives Exchange settled down 5 ringgit, or 0.32 percent, at 1,576 ringgit ($443) per tonne, after coming off a high of 1,630 ringgit.
Other traded contracts were mostly lower, falling between 5 ringgit and 40 ringgit. The overall volume stood at 6,891.
REGIONAL EQUITIES-BANGKOK, Dec 15 (Reuters) - Most Southeast Asian stock markets rose on Monday amid optimism about a U.S. car sector bailout and investors picked up blue chips in the region such as Singapore's UOB, Thailand's PTT and Indonesia's Bank Rakyat. Thai shares <.SETI> rose 2.89 percent.
Indonesia's main stock index <.JKSE> led the gains, climbing 7.63 percent on strong buying in bank stocks, while Singapore shares <.FTSTI> gained 1.98 percent.
In Kuala Lumpur, the main index erased its morning gain, closing 0.68 percent lower, weighed down by a 2.5 percent fall in Bumiputra Commerce Holdings Bhd.
JPMorgan Chase & Co
Another blow to sentiment was concern about the financial sector's exposure to potential losses related to investment manager Bernard Madoff, who is accused by U.S. authorities of masterminding a $50 billion fraud.
The Dow Jones industrial average <.DJI> shed 65.15 points, or 0.75 percent, to end at 8,564.53. The Standard & Poor's 500 Index <.SPX> fell 11.16 points, or 1.27 percent, to 868.57. The Nasdaq Composite Index <.IXIC> dropped 32.38 points, or
2.10 percent, to 1,508.34.
NYMEX-NEW YORK, Dec 15 (Reuters) - U.S. crude oil futures fell on Monday, retreating from an early high above $50 a barrel as Wall Street slumped after a stronger open and refueled concerns about a slowing economy.
On the New York Mercantile Exchange, January crude
CBOT-SOYBEANS - January
with additional pressure from trade reports on Friday that Informa Economics forecast 2009 U.S. soy acreage at 81.455 million, up from 75.9 million in 2008.
The National Oilseed Processors Association said November soybean crushings where 139.4 million bushels down from 143.4 million bushels in October.
CBOT-SOYOIL - January
U.S. soyoil stocks stood at 2.04 billion pounds, up from 1.98 billion pounds in October, the National Oilseed Processors Association said.
FCPO-JAKARTA, Dec 15 (Reuters) - Malaysian palm futures wiped out gains of 3 percent to end slightly lower on Monday, rattled by fears that exports to India will slow down, traders said.
The benchmark February palm oil contract
Other traded contracts were mostly lower, falling between 5 ringgit and 40 ringgit. The overall volume stood at 6,891.
REGIONAL EQUITIES-BANGKOK, Dec 15 (Reuters) - Most Southeast Asian stock markets rose on Monday amid optimism about a U.S. car sector bailout and investors picked up blue chips in the region such as Singapore's UOB, Thailand's PTT and Indonesia's Bank Rakyat. Thai shares <.SETI> rose 2.89 percent.
Indonesia's main stock index <.JKSE> led the gains, climbing 7.63 percent on strong buying in bank stocks, while Singapore shares <.FTSTI> gained 1.98 percent.
In Kuala Lumpur, the main index erased its morning gain, closing 0.68 percent lower, weighed down by a 2.5 percent fall in Bumiputra Commerce Holdings Bhd
FKLI Daily: trying hard to sustain
Market is trying hard to sustain following few attempts to violate 865 level was failed. As for now, we pegged the immediate support at 850-842 followed by 840-836.5. For upside, resistance is at 865 followed by 869.5-871.
KLSE Daily: losing strength
Market is losing strength following a negative close. Looks market may move sideways in near term market. We now look for the immediate support at 838-835. Fro upside, resistance is at 858-860 followed by 864-868.
DJI Daily: directionless
Market continue its sideways move and looks directionless. We look for the immediate resistance at 8827-8879. For downside, immediate support is pegged at 8347-8335.
FCPO Daily: tough resistance at 1700 mark
FCPO continue to struggle for survive after few attempts failed to breakthrough 1700 mark. As for now, we look for the immediate support at 1560-1556 followed by 1520-1500, For upside, immediate resistance is at 1650-1658 followed by 1666.
Monday, December 15, 2008
Trader's Comment: Palm oil futures ended in a negative territory after giving up all of its earlier gains.
Palm oil futures ended in a negative territory after giving up all of its earlier gains. Rising Asian time crude oil in the early trade which traded at around $1 higher, coupled with good export figures released by private cargo surveyor ITS which posted an increase by 39.3% saw Benchmark Feb09 to hit the intra day high of 1630 after opened RM44 higher at 1625. However, CPO prices unable to sustain and began to fall due to lack of follow through buying activities. Subsequent easing off of crude oil after 2nd session resumed trading had sent CPO prices to fall further below 1600 level and hit intra day low at 1570 despite the other private cargo surveyor SGS recorded almost the same result of export data. Benchmark Feb09 then hovered between 1575-1585 level before it finally settled at RM5 lower at 1576. Trades were thin as player cautious ahead of coming OPEC meeting on 17 Dec.
Breaking News-RTRS-INTERVIEW-India's palm oil imports slowing from Dec
KUALA LUMPUR, Dec 15 (Reuters) - India, the world's No. 2 vegetable oils buyer, will buy less palm oil from December due to a better winter soybean crop as well as attractive rival sunoil and soyoil prices, a leading trader said on Monday.
Breaking News-RTRS-China sees Dec soy imports up 11.5 pct vs Nov -MOFCOM
BEIJING, Dec 12 (Reuters) - Chinese buyers expected 2.93 million tonnes of soybean imports in December, the Commerce Ministry said in a report on Friday, 11.5 percent higher than its estimate for November, as low costs encouraged more imports by the world's largest buyer.
The ministry's figure for November, at 2.87 million tonnes, was much lower than the actual arrivals reported by the Customs Administration, at 3.32 million tonnes. Commerce estimates typically are lower than the Customs measure, because they fail to include all shipments.
The ministry's figure for November, at 2.87 million tonnes, was much lower than the actual arrivals reported by the Customs Administration, at 3.32 million tonnes. Commerce estimates typically are lower than the Customs measure, because they fail to include all shipments.
Trader's Highlight
DJI-NEW YORK, Dec 12 (Reuters) - U.S. stocks rose on Friday on hopes that a lifeline for struggling U.S. automakers could still materialize, while investors bet the large stockpiles in cash at technology companies will help them weather the economic downturn.
In the latest in the U.S. automakers' attempt to secure a financial rescue, the White House said it could be willing to provide emergency funding to the struggling auto industry, the day after Congress failed to approve a deal.
The Dow Jones industrial average <.DJI> rose 64.59 points, or 0.75 percent, to end at 8,629.68. The Standard & Poor's 500 Index <.SPX> added 6.14 points, or 0.70 percent, to 879.73. The Nasdaq Composite Index <.IXIC> jumped 32.84 points, or 2.18 percent, to 1,540.72.
NYMEX-NEW YORK, Dec 12 (Reuters) - U.S. crude oil futures ended lower on Friday, moving down with Wall Street, amid worries over whether the government will come up with a rescue package for troubled U.S. automakers.
In volatile trading on the New York Mercantile Exchange, January crude settled down $1.70, or 3.54 percent, at $46.28 a barrel, snuffing a two-day rally. It traded from $43.32 to $47.51.
CBOT-SOYBEANS - January down 2-1/2 cents at $8.54 a bushel. Lower on outlooks for more U.S. soy acres in 2009, falling crude and precious metals.
Underpinned by dry weather concerns in South America, especially in Argentina, and China's voracious appetite for U.S. soybeans.
National Oilseed Processors Association issue monthly crush data on Monday.
CBOT-SOYOIL - December expired 0.36 cent lower at 31.10 cents per lb. January down 0.80 cent per lb at 30.92 cents. Pressured by falling crude oil.
FCPO-KUALA LUMPUR, Dec 12 (Reuters) - Malaysian palm futures tumbled 3.8 percent on Friday in a commodities sell-off after the U.S. failed to pass a deal to bail out automakers and record inventories.
The benchmark February palm oil contract on Bursa Malaysia's Derivatives Exchange settled down 63 ringgit at 1,581 ringgit ($442) after going as low as 1,567 ringgit.
Other traded contracts fell between 11 ringgit and 63 ringgit. Overall volume was 10,242 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Dec 12 (Reuters) - Southeast Asian stock markets mostly fell on Friday after the failure of talks on a bailout for U.S. car firms, with Singapore dropping for a second day as blue chip financials led decliners.
Singapore's Straits Times Index <.FTSTI> fell for a second day to end 3 percent lower.But Thai stocks <.SETI> reversed a 2.6 percent fall to end up 0.04 percent as investors bet opposition Democrat Party leader Abhisit Vejjajiva would be elected prime minister on Monday, helping restore confidence.
Indonesian stocks <.JKSE> closed down 4.08 percent. In Kuala Lumpur, Southeast Asia's best performer this year, the main index dropped 0.98 percent on Friday, with decliners led by a 2.5 percent fall in Tenaga Nasional.
In the latest in the U.S. automakers' attempt to secure a financial rescue, the White House said it could be willing to provide emergency funding to the struggling auto industry, the day after Congress failed to approve a deal.
The Dow Jones industrial average <.DJI> rose 64.59 points, or 0.75 percent, to end at 8,629.68. The Standard & Poor's 500 Index <.SPX> added 6.14 points, or 0.70 percent, to 879.73. The Nasdaq Composite Index <.IXIC> jumped 32.84 points, or 2.18 percent, to 1,540.72.
NYMEX-NEW YORK, Dec 12 (Reuters) - U.S. crude oil futures ended lower on Friday, moving down with Wall Street, amid worries over whether the government will come up with a rescue package for troubled U.S. automakers.
In volatile trading on the New York Mercantile Exchange, January crude
CBOT-SOYBEANS - January
Underpinned by dry weather concerns in South America, especially in Argentina, and China's voracious appetite for U.S. soybeans.
National Oilseed Processors Association issue monthly crush data on Monday.
CBOT-SOYOIL - December
FCPO-KUALA LUMPUR, Dec 12 (Reuters) - Malaysian palm futures tumbled 3.8 percent on Friday in a commodities sell-off after the U.S. failed to pass a deal to bail out automakers and record inventories.
The benchmark February palm oil contract
Other traded contracts fell between 11 ringgit and 63 ringgit. Overall volume was 10,242 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Dec 12 (Reuters) - Southeast Asian stock markets mostly fell on Friday after the failure of talks on a bailout for U.S. car firms, with Singapore dropping for a second day as blue chip financials led decliners.
Singapore's Straits Times Index <.FTSTI> fell for a second day to end 3 percent lower.But Thai stocks <.SETI> reversed a 2.6 percent fall to end up 0.04 percent as investors bet opposition Democrat Party leader Abhisit Vejjajiva would be elected prime minister on Monday, helping restore confidence.
Indonesian stocks <.JKSE> closed down 4.08 percent. In Kuala Lumpur, Southeast Asia's best performer this year, the main index dropped 0.98 percent on Friday, with decliners led by a 2.5 percent fall in Tenaga Nasional
FKLI Weekly: Downtrend remains intact
Downtrend remains intact.Market likely to continue its sideways to lower move in near term. Support is pegged at 831 followed by 803.5 while resistance is at 865-868 followed by 870-877.
KLSE Weekly: Holding ground
Market continues to hold ground and moves in range bound mode. We now looking the support at 835-830 followed by 800 mark. For upside, immediate resistance is at 868-869 followed by 900.
DJI Weekly: Consolidation phase to be continue..........
Nothing much changes on the immediate weekly landscape as market remains in consolidation phase. We now looking the support at 8000 mark. For upside, resistance is at 9026-9043.
FCPO Weekly: Holiding Firm
Market was holding firm and looks may continue to build up base. We continue to look for support at 1396-1331. Upside resistance is at 1692-1727.
Friday, December 12, 2008
Trader's Comment: CPO futures fell sharply on record high stock data
CPO futures fell sharply on record high stock data. Benchmark Feb09 immediately slid lower through out the morning session after openedRM6 higher at 1650 that is also the intra day high. The release of key inventory data by Malaysian Palm Oil Board(MPOB), which reported a higher than initial estimated of stocks level had further undermined the CPO prices. MPOB put November08 end stocks at record of 2.26 million tones up 8.34% from October08. Benchmark Feb09 broke below 1600 level once afternoon session resumed trading and hit intra day low at 1567. It then hovered between 1570-1595 level before it finally settled RM63 lower at 1581. The spill over from the fall in regional equity market after US Congress failed to pass the deal to bail out automakers had also provide selling pressure to the already weak sentiment.
Breaking News-Senate Rejects Auto Industry Bailout After Talks Fail
Dec. 11 (Bloomberg) -- The Senate rejected a $14 billion bailout plan for U.S. automakers, in effect ending congressional efforts to aid General Motors Corp. and Chrysler LLC, which may run out of cash early next year.
Trader's Highlight
DJI-NEW YORK, Dec 11 (Reuters) - U.S. stocks fell on Thursday on dimming prospects for an automaker bailout, while bleak comments about the banking sector from JPMorgan's chief executive prompted investors to sell financial shares.
Most of the drop came late in the afternoon, but the day was governed by a steady stream of dismal corporate and economic news, including initial claims for unemployment benefits hitting a 26-year high. The pullback was another setback for those Wall Street pundits who argue that stocks hit their bottom late last month.
The Dow Jones industrial average <.DJI> fell 196.33 points, or 2.24 percent, to 8,565.09. The Standard & Poor's 500 Index <.SPX> slid 25.65 points, or 2.85 percent, to 873.59. The Nasdaq Composite Index <.IXIC> lost 57.60 points, or 3.68 percent, to 1,507.88.
NYMEX-NEW YORK, Dec 11 (Reuters) - U.S. crude oil futures ended more than 10 percent higher on Thursday as the dollar weakened against the euro and traders factored in news that top oil exporter Saudi Arabia had pumped in line with its OPEC target last month.
A forecast from the International Energy Agency that world oil demand growth would resume in 2009 and expectations that OPEC will cut production further at its Dec. 17 meeting in Algeria also helped lift crude futures.
On the New York Mercantile Exchange, January crude settled up $4.46, or 10.25 percent, at $47.98 a barrel, trading $43.28 to $49.12, highest since Dec. 2 when prices hit $50.25.
CBOT-SOYBEANS - January up 27 cents at $8.56-1/2 bushel. Boosted by higher crude and weak dollar with weather concerns in portions of South America also being eyed.
USDA said 2008/09 U.S. soy ending stocks at 205 million bushels, unchanged from its November forecast and near trade estimates.
CBOT-SOYOIL - December up 0.87 cent at 31.46 cents/lb. Following crude higher.
FCPO-KUALA LUMPUR, Dec 11 (Reuters) - Malaysian palm futures gained as much as 3.9 percent on Thursday to hit a new one-week high as strength in crude oil markets and signs of strong Indian demand boosted prices.
Traders said expectations for bearish inventory data from industry regulator the Malaysian Palm Oil Board (MPOB) due on Friday was already priced in although others say stocks might go above 2.2 million tonnes.
The benchmark February palm oil contract on Bursa Malaysia's Derivatives Exchange rose as much as 63 ringgit to 1,658 ringgit ($465) per tonne, a level last seen on Dec 1. The contract settled at 1,644 ringgit.
Other traded contracts rose between 31 ringgit and 70 ringgit. Overall volume climbed to 11,579 lots of 25 tonnes each from the usual 10,000 lots.
REGIONAL EQUITIES-BANGKOK, Dec 11 (Reuters) - Southeast Asian stock markets generally lost most of their early gains on Thursday amid a gloomy economic outlook.
Singapore's benchmark stock index <.FTSTI> closed down 1.5 percent, with United Overseas Bank, Singapore's second largest lender, sliding 2.5 percent.
In Kuala Lumpur, the main index <.KLSE> ended up 0.7 percent at a near two-week high, with advancers led by Sime Darby, which added 4.7 percent, and Bumiputra Commerce , which was 5.1 percent higher.
Most of the drop came late in the afternoon, but the day was governed by a steady stream of dismal corporate and economic news, including initial claims for unemployment benefits hitting a 26-year high. The pullback was another setback for those Wall Street pundits who argue that stocks hit their bottom late last month.
The Dow Jones industrial average <.DJI> fell 196.33 points, or 2.24 percent, to 8,565.09. The Standard & Poor's 500 Index <.SPX> slid 25.65 points, or 2.85 percent, to 873.59. The Nasdaq Composite Index <.IXIC> lost 57.60 points, or 3.68 percent, to 1,507.88.
NYMEX-NEW YORK, Dec 11 (Reuters) - U.S. crude oil futures ended more than 10 percent higher on Thursday as the dollar weakened against the euro and traders factored in news that top oil exporter Saudi Arabia had pumped in line with its OPEC target last month.
A forecast from the International Energy Agency that world oil demand growth would resume in 2009 and expectations that OPEC will cut production further at its Dec. 17 meeting in Algeria also helped lift crude futures.
On the New York Mercantile Exchange, January crude
CBOT-SOYBEANS - January
USDA said 2008/09 U.S. soy ending stocks at 205 million bushels, unchanged from its November forecast and near trade estimates.
CBOT-SOYOIL - December
FCPO-KUALA LUMPUR, Dec 11 (Reuters) - Malaysian palm futures gained as much as 3.9 percent on Thursday to hit a new one-week high as strength in crude oil markets and signs of strong Indian demand boosted prices.
Traders said expectations for bearish inventory data from industry regulator the Malaysian Palm Oil Board (MPOB) due on Friday was already priced in although others say stocks might go above 2.2 million tonnes.
The benchmark February palm oil contract
Other traded contracts rose between 31 ringgit and 70 ringgit. Overall volume climbed to 11,579 lots of 25 tonnes each from the usual 10,000 lots.
REGIONAL EQUITIES-BANGKOK, Dec 11 (Reuters) - Southeast Asian stock markets generally lost most of their early gains on Thursday amid a gloomy economic outlook.
Singapore's benchmark stock index <.FTSTI> closed down 1.5 percent, with United Overseas Bank
In Kuala Lumpur, the main index <.KLSE> ended up 0.7 percent at a near two-week high, with advancers led by Sime Darby
DJI Daily: remains sideways
DJI remains in consolidation phase. We continue to look for the resistance at 9266-9284. For downside, support maintains at 8118-8143.
FKLI Daily: building up base
Bear took a short term break after the sharp fall following prices holding well. As you can see from the daily chart, the low is getting higher and looks market may try to build up its base in order for a bear rebound in near term. As for now, we pegged the immediate support at 850-842. For upside, resistance is at 876.5-877.
KLSE Daily: steady
Market continue to hold ground and remains steady. Looks may want to challenge the upside gap left over at 869-876 (gap left over since 19/11/2008). For downside, support is pegged at 848-850.
FCPO Daily: eyeing 1700 mark
Market inching up slowly to get closer to 1700 mark. We now looking at the support at 1550-1580. For upside, immediate resistance is at 1666-1675 followed by 1692-1700.
Thursday, December 11, 2008
Trader's Comment: Palm oil futures extended its gain in its 4th day rally on the back of steady rival soy oil and NYMEX crude oil.
Palm oil futures extended its gain in its 4th day rally on the back of steady rival soy oil and NYMEX crude oil. Benchmark Feb09 encountered some slight profit taking activities and slip to the intra day low of 1580 after opened almost unchanged at 1597. However, bulls unwillingly to surrender saw prices bounced back strongly and broke the 1600 psychological resistant level easily. Asian time NYMEX crude oil holding steadily after rising overnight coupled with higher eCBOT and Dalian palm also lifted the buying sentiment in the market. Benchmark Feb09 hit the intra day high of 1658 after hovering between 1650-1630 level before it finally settled RM49 higher at 1644. Market tone remained positive.
Breaking News-RTRS-RPT-POLL-Malaysia's Nov palm inventories seen hitting new peak
RTRS-RPT-MALAYSIA'S END-NOV PALM OIL STOCKS SEEN AT RECORD HIGH, UP 4.5 PCT FROM OCT -REUTERS POLL
RTRS-RPT-MALAYSIA'S NOV PALM OIL OUTPUT SEEN DOWN 3.2 PCT FROM OCT AT 1.60 MLN TONNES -POLL
RTRS-RPT-MALAYSIA'S NOV PALM OIL EXPORTS SEEN UP 4.8 PCT FROM OCT AT 1.4 MLN TONNES -POLL
RTRS-RPT-MALAYSIA'S NOV PALM OIL OUTPUT SEEN DOWN 3.2 PCT FROM OCT AT 1.60 MLN TONNES -POLL
RTRS-RPT-MALAYSIA'S NOV PALM OIL EXPORTS SEEN UP 4.8 PCT FROM OCT AT 1.4 MLN TONNES -POLL
Breaking News-RTRS-INTERVIEW-UPDATE 1-Soymeal buyers default on India deals - trade
NEW DELHI, Dec 10 (Reuters) - Soymeal buyers in South Korea, Vietnam and Indonesia have reneged on deals with India after prices fell, forcing exporters to renegotiate contracts and offer cheaper rates, a leading seller said on Wednesday.
A sharp fall in prices of almost all major commodities has led to defaults with buyers finding it difficult to honour deals.
Indian vegetable oil traders have backed out of import deals, sparking protests from suppliers such as Malaysia and Indonesia, which have threatened to blacklist those who defaulted.
A sharp fall in prices of almost all major commodities has led to defaults with buyers finding it difficult to honour deals.
Indian vegetable oil traders have backed out of import deals, sparking protests from suppliers such as Malaysia and Indonesia, which have threatened to blacklist those who defaulted.
Breaking News-RPT-UPDATE 2-Malaysia pushes harder for palm biofuels
KUALA LUMPUR, Dec 10 (Reuters) - Malaysia said on Wednesday it would aim to convince independent power producers to boost the use of palm oil as a fuel, but industry observers remained sceptical because of the government's overly high subsidies to support the sector.
The world's second-largest palm producer said it will sell palm biodiesel at domestic pumps in 2010, as well as lure IPPs to burn palm oil as biodisel -- measures aimed at mopping up excess stocks of the vegetable oil.
The world's second-largest palm producer said it will sell palm biodiesel at domestic pumps in 2010, as well as lure IPPs to burn palm oil as biodisel -- measures aimed at mopping up excess stocks of the vegetable oil.
Breaking News-RTRS-CORRECTED-Sarawak palm oil reeling under low prices-paper
KUALA LUMPUR, Dec 10 (Reuters) - Oil palm plantation companies in Malaysia's Sarawak state have appealed for government aid to help them offset a sharp fall in prices, the Star newspaper reported on Wednesday.
In Sarawak, just 20 percent of the palm oil plantations are mature due to a rush into the commodity at peak prices, compared with 86 percent in peninsular Malaysia and 59 percent in Sabah, which means that many of the Sarawak plantations are not economically viable, the paper said.
In Sarawak, just 20 percent of the palm oil plantations are mature due to a rush into the commodity at peak prices, compared with 86 percent in peninsular Malaysia and 59 percent in Sabah, which means that many of the Sarawak plantations are not economically viable, the paper said.
Trader's Comment: CPO futures ended higher after trading in the fairly steady mode.
CPO futures ended higher after trading in the fairly steady mode. Benchmark Feb09 hit 1599 after opened RM36 higher at 1591, due to the data released by private cargo surveyor ITS in the early morning which reported a nearly doubled export figures for the first 10 days of the month. It then slid to the intra day low of 1560 which fully recovered yesterday’s left over gap. However, CPO prices were well supported amid a steady crude oil prices in Asian time zone coupled with the gains in eCBOT soy complex and Dalian palm. The other cargo surveyor SGS that released its report in the afternoon also showed almost the same result. Benchmark Feb09 then traded in a range between 1565-1590 for most of the sessions before it hit the intra day high of 1605 in the late trading. Later, it settled RM40 higher at 1595. Speculative buying on fear of flood providing the support as well.
Trader's Highlight
DJI-NEW YORK, Dec 10 (Reuters) - U.S. stocks rose in a choppy session on Wednesday as a rebound in oil prices and other commodities lifted energy, mining and materials shares, offsetting nervousness over whether Washington will agree on a bailout for ailing car makers.
The Dow Jones industrial average rose 70.09 points, or 0.81 percent, to 8,761.42. The Standard & Poor's 500 Index gained 10.57 points, or 1.19 percent, to 899.24. The Nasdaq Composite Index was up 18.14 points, or 1.17 percent, at 1,565.48.
NYMEX-NEW YORK, Dec 10 (Reuters) - U.S. crude oil futures rose on Wednesday as Saudi Arabia, according to trading sources, had told customers it would significantly cut oil supplies for January.
On the New York Mercantile Exchange, January crude settled up $1.45, or 3.45 percent, at $43.52 a barrel. At its session high, it was up more than $4 at $46.17, the highest since Dec. 4. The bottom of the day's range was $41.89.
CBOT-SOYBEANS - January up 16-1/2 cents at $8.29-1/2 a bushel.
Tight stocks of soy and firm crude prices boosted soy. Weak dollar and gains in stock market supportive. Average of analysts' estimates pegged 2008/09 U.S. soy
ending stocks at 202 million bushels, below the USDA's forecast in November for 205 million.
CBOT-SOYOIL - December up 1.05 cents at 30.59 cents/lb. Climbed when crude was up more than $2 a barrel, then crude slipped.
FCPO-KUALA LUMPUR, Dec 10 (Reuters) - Malaysian palm futures jumped as much as 3.2 percent to touch one-week highs on Wednesday after cargo surveyors reported that exports for the first 10 days of the month nearly doubled.
The benchmark February palm oil contract on Bursa Malaysia's Derivatives Exchange rose as much as 50 ringgit to 1,605 ringgit ($444) per tonne, a level last seen on Dec 2., before settling at 1,595 ringgit.
Other traded contracts rose between 14 ringgit and 70 ringgit. Overall volume stood at 11,129 lots of 25 tonnes.
REGIONAL EQUITIES-JAKARTA, Dec 10 (Reuters) - Southeast Asian stocks rose on Wednesday, with Jakarta <.JKSE> up 3.9 percent led by energy and agriculture stocks thanks to a rebound in oil and palm oil prices.
Singapore's Straits Times Index <.FTSTI> rose 3.8 percent, Kuala Lumpur <.KLSE> gained 2.33 percent, and Philippine stocks <.PSI> inched up 0.19 percent. Vietnam <.VNI> fell 2.2 percent, while Thailand was closed on Wednesday.
The Dow Jones industrial average rose 70.09 points, or 0.81 percent, to 8,761.42. The Standard & Poor's 500 Index gained 10.57 points, or 1.19 percent, to 899.24. The Nasdaq Composite Index was up 18.14 points, or 1.17 percent, at 1,565.48.
NYMEX-NEW YORK, Dec 10 (Reuters) - U.S. crude oil futures rose on Wednesday as Saudi Arabia, according to trading sources, had told customers it would significantly cut oil supplies for January.
On the New York Mercantile Exchange, January crude
CBOT-SOYBEANS - January
Tight stocks of soy and firm crude prices boosted soy. Weak dollar and gains in stock market supportive. Average of analysts' estimates pegged 2008/09 U.S. soy
ending stocks at 202 million bushels, below the USDA's forecast in November for 205 million.
CBOT-SOYOIL - December
FCPO-KUALA LUMPUR, Dec 10 (Reuters) - Malaysian palm futures jumped as much as 3.2 percent to touch one-week highs on Wednesday after cargo surveyors reported that exports for the first 10 days of the month nearly doubled.
The benchmark February palm oil contract
Other traded contracts rose between 14 ringgit and 70 ringgit. Overall volume stood at 11,129 lots of 25 tonnes.
REGIONAL EQUITIES-JAKARTA, Dec 10 (Reuters) - Southeast Asian stocks rose on Wednesday, with Jakarta <.JKSE> up 3.9 percent led by energy and agriculture stocks thanks to a rebound in oil and palm oil prices.
Singapore's Straits Times Index <.FTSTI> rose 3.8 percent, Kuala Lumpur <.KLSE> gained 2.33 percent, and Philippine stocks <.PSI> inched up 0.19 percent. Vietnam <.VNI> fell 2.2 percent, while Thailand was closed on Wednesday.
FCPO Daily: may want to challenge 1700 again!
FCPO ended with good closing despite it close below 1600 mark. Market looks stabilised following 1400 mark provided a good support. It may want to challenge 1700 level again in near term. We now look at the support at 1500-1487. For upside, resistance is at 1666-1675 followed by 1692-1700.
FKLI Daily: Bear rebound
Market violated the resistance at 859.5 with printed a white candle. This had given a little hope for a bear to rebound. As for now, we pegged the immediate support at 842-831. For upside, resistance is at 865-868 followed by 876.5-877.
KLSE Daily: gaining ground
Market gaining a little ground with 838-837 level was well supported. Sideways move looks may continue in near term market. For upside, resistance is 869-876 (gap left over since 19/11/2008).
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