Thursday, September 11, 2008

Trader's Comment: CPO futures dived

CPO futures dived to end weak as tracking losses in NYMEX crude oil in Asian time zone. Sluggish trading in the morning session saw benchmark Nov 08 stuck in tight range between 2334-2359 with traded in thin volume. However, market momentum turning weak in the afternoon session following NYMEX crude oil in Asian time zone traded around USD 101/ barrel near to the physiological support level. Speculative selling interest kept market under pressure and saw Nov 08 cracked below 2300 mark and dived to the fresh year low at 2275. Late intra-day short covering activities helped to provide a little cushion. Nov 08 then recovered a little to settle RM 20 lower at 2309 with total daily volume stood at 8,027 contracts changed hands.

FCPO: Extremely weak


Market cracked below 2300 level and dived to the low at 2275 in intra-day basis before it manage to end above 2300 mark. The overall technical landscape was extremely weak. We now look for the support at 2240-2235 followed by 2150-2140. For upside, resistance is at 2400-2410

FCPO Hourly:moves in range 2300-2400


Sluggish trading day and looks market likely to move in tight range between 2300-2400.

FKLI: more room to downside potential


More room to downside potential following market failed to defend at 1036. We now look for the support at 970-960. Resistance is at 1050.

KLSE: violated 1050 underline support !


1050 underline support was violated and market is likely to trend lower. We now look for the next support at 970 mark. For upside, resistance at 1064

Trader's Highlight

DJI-NEW YORK, Sept 10 (Reuters) - A broad relief rally swept Wall Street on Wednesday as the U.S. dollar scaled a new one-year peak and oil prices fell despite a surprise decision by OPEC to cut production.

Weak demand and the strong dollar helped oil slide to fresh five-month lows just above $100 a barrel. The Organization of Petroleum Exporting Countries said after a meeting in Vienna it would cut daily output by about 520,000 barrels.

The Dow Jones industrial average <.DJI> closed up 38.19 points, or 0.34 percent, at 11,268.92. The Standard & Poor's 500 Index <.SPX> rose 7.53 points, or 0.61 percent, at 1,232.04. The Nasdaq Composite Index <.IXIC> gained 18.89 points, or 0.85 percent, at 2,228.70.

NYMEX-NEW YORK, Sept 10 (Reuters) - U.S. crude oil futures settled lower on Wednesday after a volatile trading session, hit by a stronger dollar and government data showing crude oil stocks building up in the U.S. Gulf Coast refining region after Hurricane Gustav crippled several plants last week.

The increase in crude inventories in the Gulf Coast region offset concerns over a larger-than-expected nationwide drawdown, dealers said.

NYMEX October WTI futures settled at $102.58 a barrel, down 68 cents, after trading between $101.36 and $104.97 a barrel.

CBOT-SOYBEANS
- September down 27-1/2 cents at $11.81-1/2 per bushel, November down 23 at $11.78.Pressured by benign U.S. crop weather and strength in the
dollar. Lack of frost threat weighed on soy as did downturn in crude oil.

SOYOIL
- September down 0.49 at 47.69 cents per lb.Following declines in soybeans and crude oil.

USDA will release new crop production estimates on Friday. Despite a slow start to the growing season, USDA forecast in August a corn crop of 12.288 billion bushels, the second-largest on record.

FCPO-JAKARTA, Sept 10 (Reuters) - Malaysian crude palm oil futures dropped more than 1 percent on Wednesday following news of a fall in exports during the first 10 days of this month, dealers said.

The benchmark November crude palm oil contract on the Bursa Malaysia Derivatives Exchange ended down 25 ringgit, or 1.06 percent, at 2,329 ringgit ($673) a tonne.

REGIONAL EQUITIES
-SINGAPORE, Sept 10 (Reuters) - Southeast Asian stock markets fell on Wednesday on fresh worries about slowing global demand,the health of U.S. banks and sliding commodity prices.

World stocks resumed their downtrend as worries over the fate of U.S. investment bank Lehman Brothers grew ahead of its quarterly results announcement on Wednesday.

Malaysia shed 0.6 percent to hit a 20-month low six days ahead of a deadline set by opposition leader Anwar Ibrahim to topple the ruling coalition.

Singapore's benchmark index fell 1.9 percent, while Thailand slid 1.2 percent on weak bank shares. Vietnam slid a fourth straight session, by 2.1 percent, to a
3-week low, while the Philippine index shed 0.4 percent.

DJI: ended with little gains


Market remained struggling after the sell down. We continue to look for the immediate resistance at 11625-11635. For downside, immediate support remained at 11125 followed by 11037.