Market covered some of the upside gap left over yesterday after a steep fall. We continue to look for the support at 1775 followed by 1690-1670. Immediate resistance is at 1892-1934 (gap left over from 6/10/2008).
Tuesday, October 7, 2008
FCPO Daily : remain bearish
Market covered some of the upside gap left over yesterday after a steep fall. We continue to look for the support at 1775 followed by 1690-1670. Immediate resistance is at 1892-1934 (gap left over from 6/10/2008).
Trader's Comment: CPO futures ended mix to steady in choppy trading session
CPO futures ended mix to steady in choppy trading session. Short-covering activities sent prices recovered from early low at 1801 and rebounded to hit intra-day high at 1892 (+72 from yesterday's settlement) in the early part of the second session. Some players were having the opinion that Dow Jone's Industrial average may rebound tonight and this may lift the crude oil prices had prompted short-covering as well as speculative buying in BMD. Technically, the market also try to cover the gap between 1880 to 1934 which left over yesterday. It managed to cover partially and ease off due to lack of follow through buying support. Then, prices hovering between 1820 to 1860 before it settled RM30 higher at 1850. Daily volume remains good with 19,393 contracts changed hands.
FKLI Daily: fully covered upside gap at 1005-1009
Market managed to recover and rebound from early losses to end higher. Gap left over yesterday at 1005-1009 has been fully covered. Nevertheless, the overall technical landscape remained in negative. Thus, we continue to look for the support at 961.0 followed by 930-935. Immediate upside resistance is at 1020-1025.
KLSE Daily: remain in dark mood
KLSE recouped early losses to end firm yet market remained in dark mood. We continue to look for the support at 963.29. While upside resistance remained at 1020-1025.
Breaking News-RTRS-Malaysia's September palm stocks climb 9.3%-POLL
The Reuters poll also showed Malaysia probably imported
20,000 tonnes, mainly of crude palm oil, from Indonesia.
Breakdown for September estimates (in tonnes):
Production: Range (R) 1,630,000-1,728,000 Median (M)1,647,543 Average (Avg) 1,663,272
Exports (R) 1,180,000-1,205,000 (M) 1,200,000 (Avg) 1,196,250
Imports (R) 15,000-50,000 (M) 20,000 (Avg) 26,250
Closing stocks (R)1,988,000-2,166,000 (M)2,020,000 (Avg) 2,048,500
* Median for closing stocks based on estimated exports of
1,200,000 tonnes and domestic consumption of 295,673 tonnes
subtracted from 3,515,673 tonnes, the total of September's
estimated production, imports and official opening stocks.
20,000 tonnes, mainly of crude palm oil, from Indonesia.
Breakdown for September estimates (in tonnes):
Production: Range (R) 1,630,000-1,728,000 Median (M)1,647,543 Average (Avg) 1,663,272
Exports (R) 1,180,000-1,205,000 (M) 1,200,000 (Avg) 1,196,250
Imports (R) 15,000-50,000 (M) 20,000 (Avg) 26,250
Closing stocks (R)1,988,000-2,166,000 (M)2,020,000 (Avg) 2,048,500
* Median for closing stocks based on estimated exports of
1,200,000 tonnes and domestic consumption of 295,673 tonnes
subtracted from 3,515,673 tonnes, the total of September's
estimated production, imports and official opening stocks.
Breaking News-RTRS-Limit to widen for CBOT corn, soybean, meal, oil
CHICAGO, Oct 6 (Reuters) - The daily trading limits for Chicago Board of Trade corn, soybean, soymeal and soyoil futures will expand for Tuesday's session, following limit declines in those commodities on Monday, CME Group said.
For corn, the limit widens to 45 cents per bushel from 30 cents.
For soybeans, the limit widens to $1.05 per bushel from 70 cents.
For soymeal, the limit expands to $30 per ton from $20.
For soyoil, the limit moves to 3.5 cents per lb from 2.5 cents.
The limit in rough rice futures reverts to 50 cents per hundredweight, after widening to 75 cents for Monday.
The daily limit for each commodity widens by about 50 percent when two or more contract months within the first five to eight non-spot contracts, or the remaining contract in a crop year, close at a limit bid or limit offer.
When no contract months close at an expanded limit bid or limit offer, the price limits revert.
For corn, the limit widens to 45 cents per bushel from 30 cents.
For soybeans, the limit widens to $1.05 per bushel from 70 cents.
For soymeal, the limit expands to $30 per ton from $20.
For soyoil, the limit moves to 3.5 cents per lb from 2.5 cents.
The limit in rough rice futures reverts to 50 cents per hundredweight, after widening to 75 cents for Monday.
The daily limit for each commodity widens by about 50 percent when two or more contract months within the first five to eight non-spot contracts, or the remaining contract in a crop year, close at a limit bid or limit offer.
When no contract months close at an expanded limit bid or limit offer, the price limits revert.
Trader's Highlight
DJI-NEW YORK, Oct 6 (Reuters) - U.S. stocks slid for a fourth straight day on Monday, leaving the Dow below 10,000 for the first time in four years, on fears the global economy was hurtling into recession despite government efforts to contain the fast-spreading financial crisis.
The steep declines came in the first full session since the U.S. Congress approved a $700 billion bailout of the financial industry, as lending came to a virtual halt and investors shifted their focus to the crumbling outlook for the economy and profits.
But the market cut almost half its losses in the final hour of the session, as traders speculated the sell-off may trigger a coordinated global response to thaw credit markets. The Dow plummeted as much as 800.06 points -- a record intraday point drop for the blue-chip average -- as it slid 7.75 percent to its session low at 9,525.32. By the closing bell, though, the Dow had recovered 430.18 points to end down 3.6 percent.
The Dow Jones industrial average <.DJI> fell 369.88 points, or 3.58 percent, to 9,955.50. It was the first time the Dow closed below 10,000 since October 2004. The Standard & Poor's 500 Index <.SPX> skidded 42.34 points, or 3.85 percent, to 1,056.89, while the Nasdaq Composite Index <.IXIC> dropped 84.43 points, or 4.34 percent, to 1,862.96. For the year to date, the Dow is down about 25 percent, the S&P 500 is down 28 percent and the Nasdaq is down 29.8 percent.
NYMEX-NEW YORK, Oct 6 (Reuters) - U.S. crude oil futures settled at the lowest level in eight months on Monday as the financial turmoil spreading to Europe fueled more worries about slowing global oil demand.
On the New York Mercantile Exchange, November crude settled down $6.07, or 6.47 percent, at $87.81 a barrel, the lowest since Feb. 6's close at $87.81. It traded from $87.56,lowest intraday since Feb. 7's $86.24, to $92.68.
CBOT-SOYBEANS - November down 70-cent limit at $9.22 per bushel, January down 70 at $9.38-1/2.
Fell 7 percent to a near one-year low in spot month. Nearbys fell the 70-cent limit but commercial buying emerged at the lows. Continued long liquidation noted as global economic crisis worsens, with stock market down, crude oil falling and the
dollar firming.
CBOT-SOYOIL - October down 2.70 cents at 39.30 cents per lb, December down 2.50-cent limit at 40.00 cents.
Following sharply lower crude oil as global financial crisis worsens. Most contracts fell the 2.5-cent limit; no limit in October, which is in delivery.
FCPO-KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange fell as much as 11.3% Monday as estimates showed a surge in inventory,
and on spillover impact from new U.S. biodiesel tax rules, weaker soyoil and
crude oil.
Traders said deferment of palm oil and soyoil shipments by China on falling
prices, ample local reserves and large domestic crop of soybeans, helped push
prices lower.
The benchmark December contract on Bursa Malaysia Derivatives ended MYR180
lower at MYR1,820 a metric ton, off an intraday low of MYR1,775, a level not seen
since November 2006.
REGIONAL EQUITIES-SINGAPORE, Oct 6 (Reuters) - Southeast Asian markets tumbled
to new lows on Monday, with Singapore hit by falling bank shares and Indonesia plunging 10 percent, on fears that efforts by policymakers to contain the credit crisis may not prevent a recession.
Singapore's benchmark index <.FTSTI> fell 5.6 percent -- its steepest drop since January - to a near 3-year low, while Thailand <.SETI> slid 6.5 percent to a fresh 5-year low. Indonesia <.JKSE> plunged 10 percent to its lowest since October 2006,
Malaysia <.KLSE> fell 2 percent, the Philippine index <.PSI> dropped 2.6 percent while Vietnamese shares <.VNI> closed 4.1 percent lower.
The steep declines came in the first full session since the U.S. Congress approved a $700 billion bailout of the financial industry, as lending came to a virtual halt and investors shifted their focus to the crumbling outlook for the economy and profits.
But the market cut almost half its losses in the final hour of the session, as traders speculated the sell-off may trigger a coordinated global response to thaw credit markets. The Dow plummeted as much as 800.06 points -- a record intraday point drop for the blue-chip average -- as it slid 7.75 percent to its session low at 9,525.32. By the closing bell, though, the Dow had recovered 430.18 points to end down 3.6 percent.
The Dow Jones industrial average <.DJI> fell 369.88 points, or 3.58 percent, to 9,955.50. It was the first time the Dow closed below 10,000 since October 2004. The Standard & Poor's 500 Index <.SPX> skidded 42.34 points, or 3.85 percent, to 1,056.89, while the Nasdaq Composite Index <.IXIC> dropped 84.43 points, or 4.34 percent, to 1,862.96. For the year to date, the Dow is down about 25 percent, the S&P 500 is down 28 percent and the Nasdaq is down 29.8 percent.
NYMEX-NEW YORK, Oct 6 (Reuters) - U.S. crude oil futures settled at the lowest level in eight months on Monday as the financial turmoil spreading to Europe fueled more worries about slowing global oil demand.
On the New York Mercantile Exchange, November crude
CBOT-SOYBEANS - November
Fell 7 percent to a near one-year low in spot month. Nearbys fell the 70-cent limit but commercial buying emerged at the lows. Continued long liquidation noted as global economic crisis worsens, with stock market down, crude oil falling and the
dollar firming.
CBOT-SOYOIL - October
Following sharply lower crude oil as global financial crisis worsens. Most contracts fell the 2.5-cent limit; no limit in October, which is in delivery.
FCPO-KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange fell as much as 11.3% Monday as estimates showed a surge in inventory,
and on spillover impact from new U.S. biodiesel tax rules, weaker soyoil and
crude oil.
Traders said deferment of palm oil and soyoil shipments by China on falling
prices, ample local reserves and large domestic crop of soybeans, helped push
prices lower.
The benchmark December contract on Bursa Malaysia Derivatives ended MYR180
lower at MYR1,820 a metric ton, off an intraday low of MYR1,775, a level not seen
since November 2006.
REGIONAL EQUITIES-SINGAPORE, Oct 6 (Reuters) - Southeast Asian markets tumbled
to new lows on Monday, with Singapore hit by falling bank shares and Indonesia plunging 10 percent, on fears that efforts by policymakers to contain the credit crisis may not prevent a recession.
Singapore's benchmark index <.FTSTI> fell 5.6 percent -- its steepest drop since January - to a near 3-year low, while Thailand <.SETI> slid 6.5 percent to a fresh 5-year low. Indonesia <.JKSE> plunged 10 percent to its lowest since October 2006,
Malaysia <.KLSE> fell 2 percent, the Philippine index <.PSI> dropped 2.6 percent while Vietnamese shares <.VNI> closed 4.1 percent lower.
DJI Daily: DJI posts biggest intra-day point decline ever
Market violated the physiological support at 10,000 mark with the biggest intra-day point decline ever. Downward move likely to continue in near term with ugly technical landscape. We now look for the support at 9390-9350. While, upside resistance is at 10800-10830.
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