Friday, October 10, 2008
Trader's Comment: Financial turmoil continue to influence and pressure most of the commodities prices to tumble further
Financial turmoil continue to influence and pressure most of the commodities prices to tumble further. NYMEX crude oil prices(spot month) was traded as low as USD 81.80(lowest since Dec'2007) a barrel during Asian time zone. Soyoil in e-CBOT was down by 200 points. For palm oil, it just follow suit. Benchmark Dec08 price was slammed down to 1725 in the afternoon session before some pre-weekend short-covering activities emerge and rebounding to settle RM117 lower at 1773, total loss of RM223 compared to last Friday's settlement. Market sentiment remains bearish as 1-10 Oct export data reeased by both cargo surveyors ITS and SGS were down by 15.7% and 11.7% respectively. Official Sept08 supply and demand data released by MPOB during the lunch break shows mildly bearish which shows Sept production down marginal while end-month stocks rose 5.5.
FCPO Weekly: weak close
No improvement with market ended weak. As for now, look for the support at 1690-1660. Resistance is at 1897-1934 (gap left over since Oct 5, 2008).
FKLI Weekly: hammer to TWO years LOW
Bear hammered with another long black candle had erased the hope of rebound. We currently look for the support at 870-875. While, resistance is at 1010-1015.
KLSE Weekly: remains BEARISH
Looks market likely to continue its bearish mood in near term with printed a long black candle. We currently look for the support and resistance at 883-884 and 1014-1015 level respectively.
Breaking News-RTRS-OPEC to discuss "production cut"in Nov meet-Qatar
DUBAI, Oct 10 (Reuters) - OPEC will discuss "cutting production" in its extraordinary meeting in November if it saw it as necessary to balance demand and supply, Qatar's Oil Minister Abdullah al-Attiyah told Al Arabiya television.
The meeting will be "dedicated to discussions of the impact of the global financial crisis on the oil market", Attiyah said late on Thursday.
Attiyah warned of a "huge decline" in crude oil prices if OPEC did not devise a quick plan to counter the impact of the global financial crisis.
The meeting will be "dedicated to discussions of the impact of the global financial crisis on the oil market", Attiyah said late on Thursday.
Attiyah warned of a "huge decline" in crude oil prices if OPEC did not devise a quick plan to counter the impact of the global financial crisis.
Breaking News-RTRS-Palm oil may find support floor at 1,500 rgt
By Niluksi Koswanage
KUALA LUMPUR, Oct 10 (Reuters) - The dramatic slide in palm oil prices could soon be drawing to an end as growers consider shifting their focus from expansion to renewing older crops, curbing supplies in the medium term.
A level of 1,500 ringgit a tonne -- 15 percent below current levels -- represents the break even point for plantations, who face a margin squeeze as prices have halved since July while fertiliser and other farm costs stay strong.
"Palm oil falling below 1,500 ringgit is very possible in the mid-term as the global recession will see big buyers like India and China tightening purse strings," said a head trader at a foreign commodities broker. "Once oil goes below $70, there will be a further free-fall."
KUALA LUMPUR, Oct 10 (Reuters) - The dramatic slide in palm oil prices could soon be drawing to an end as growers consider shifting their focus from expansion to renewing older crops, curbing supplies in the medium term.
A level of 1,500 ringgit a tonne
"Palm oil falling below 1,500 ringgit is very possible in the mid-term as the global recession will see big buyers like India and China tightening purse strings," said a head trader at a foreign commodities broker. "Once oil goes below $70, there will be a further free-fall."
Breaking News - RTRS - Japan's Yamato Life files for bankruptcy protection
TOKYO, Oct 10 - Japan's unlisted Yamato Life Insurance Co said it was filing for bankruptcy protection and would hold a media briefing at 10.00 a.m (0100 GMT)
Breaking News-RTRS-Japan seeks new IMF emergency rescue scheme-Nikkei
TOKYO, Oct 10 (Reuters) - Japan will propose the creation of a new scheme under the auspices of the International Monetary Fund (IMF) that would mobilise countries' foreign currency reserves to help fund emergency loans to emerging nations facing financial crises, the Nikkei business daily reported on Friday.
Tokyo will make the proposal at a meeting of finance ministers and central bank chiefs from Group of Seven (G7) advanced countries in Washington on Friday, the newspaper said, without quoting specific sources.
Tokyo will make the proposal at a meeting of finance ministers and central bank chiefs from Group of Seven (G7) advanced countries in Washington on Friday, the newspaper said, without quoting specific sources.
Trader's Highlight
DJI-NEW YORK, Oct 9 (Reuters) - U.S stocks plummeted for a seventh straight session on Thursday as investors bet recent moves by authorities worldwide to thaw frozen credit markets would not be enough to avert a global recession.
An avalanche of selling at the close left the Dow below 8,600 for the first time since May 2003, and down almost 40 percent from its all-time closing high hit exactly one year ago. The Nasdaq and the S&P 500 each also fell to levels not seen in more than five years.
The Dow Jones industrial average <.DJI> dropped 678.91 points, or 7.33 percent, to 8,579.19, while the Standard & Poor's 500 Index <.SPX> plummeted 75.02 points, or 7.62 percent, to 909.92. The Nasdaq Composite Index <.IXIC> sank 95.21 points, or 5.47 percent, to 1,645.12.
NYMEX-NEW YORK, Oct 9 (Reuters) - U.S. crude oil futures extended losses in post-settlement trading on Thursday, hitting the lowest level in almost 12 months as Wall Street stocks tumbled on fears that U.S.-led coordinated central bank actions might not ward off a global recession.
Higher crude oil supplies also pressured prices, along with worries about demand for oil in a weakening economy.
OPEC announced that it will meet on Nov. 18 to discuss the impact of the global financial crisis on the oil market,confirming reports on Wednesday.
On the New York Mercantile Exchange, November crude extended the day's low to $84.19, down $4.76, or 5.35 percent on the day, which was the lowest level since prices struck $83.50 on Oct. 15, 2007.
CBOT-SOYBEANS - November up 16 cents at $9.80 per bushel,January up 16-1/4 at $9.95-1/2.
Short-covering bounce ahead of USDA reports, bolstered by firm cash soy values, slow farmer selling and U.S. harvest delays due to rain. Good exports and talk of low soy yields in early harvest lend support. Oversold technical signals add
support.
Argentine commercial grain trade set to resume after a six-day farmers' strike concluded Wednesday.
Ahead of Friday's USDA reports, the average analyst estimate for 2008 U.S. soy production was 2.922 billion bushels, below USDA's forecast in September for 2.934 billion.
The average analyst estimate for 2008/09 U.S. soy ending stocks was 187 million bushels, up from 135 million forecast by USDA in September
CBOT-SOYOIL - October up 0.04 cent at 39.44 cents per lb,December up 0.02 at 39.79 cents.
Choppy. Spillover support from soybeans offsets declines in crude oil.
FCPO-KUALA LUMPUR, Oct 9 (Reuters) - Malaysian crude palm oil futures soared 6.5 percent on Thursday, recouping gains from a recent sell-off as some traders sensed a floor to the market.
The benchmark December contract on the Bursa Malaysia Derivatives Exchange settled up 115 ringgit at 1,890 ringgit ($541).
Other traded months rose between 25 and 125 ringgit <0#KPO:>. Overall volume nearly doubled to 19,498 lots of 25 tonnes.
REGIONAL EQUITY-SINGAPORE, Oct 9 (Reuters) - Singapore and Thailand stocks rose on Thursday after coordinated global interest rate cuts calmed investors, with energy and commodity plays rebounding strongly.
Other markets edged lower in a cool response to the confidence-boosting efforts, while Indonesia kept its stock exchange shut a second day after the index lost over a fifth of its value this week.
Singapore <.FTSTI> rose 3.4 percent, while Thailand gained 1.6 percent, though they are still 39 and 42 percent lower than at the start of this year.
Malaysia <.KLSE>, which has been outperforming the region in the last month, was off 0.1 percent, while the Philipine index <.PSI> fell 0.8 percent to a fresh 26-month low.
An avalanche of selling at the close left the Dow below 8,600 for the first time since May 2003, and down almost 40 percent from its all-time closing high hit exactly one year ago. The Nasdaq and the S&P 500 each also fell to levels not seen in more than five years.
The Dow Jones industrial average <.DJI> dropped 678.91 points, or 7.33 percent, to 8,579.19, while the Standard & Poor's 500 Index <.SPX> plummeted 75.02 points, or 7.62 percent, to 909.92. The Nasdaq Composite Index <.IXIC> sank 95.21 points, or 5.47 percent, to 1,645.12.
NYMEX-NEW YORK, Oct 9 (Reuters) - U.S. crude oil futures extended losses in post-settlement trading on Thursday, hitting the lowest level in almost 12 months as Wall Street stocks tumbled on fears that U.S.-led coordinated central bank actions might not ward off a global recession.
Higher crude oil supplies also pressured prices, along with worries about demand for oil in a weakening economy.
OPEC announced that it will meet on Nov. 18 to discuss the impact of the global financial crisis on the oil market,confirming reports on Wednesday.
On the New York Mercantile Exchange, November crude
CBOT-SOYBEANS - November
Short-covering bounce ahead of USDA reports, bolstered by firm cash soy values, slow farmer selling and U.S. harvest delays due to rain. Good exports and talk of low soy yields in early harvest lend support. Oversold technical signals add
support.
Argentine commercial grain trade set to resume after a six-day farmers' strike concluded Wednesday.
Ahead of Friday's USDA reports, the average analyst estimate for 2008 U.S. soy production was 2.922 billion bushels, below USDA's forecast in September for 2.934 billion.
The average analyst estimate for 2008/09 U.S. soy ending stocks was 187 million bushels, up from 135 million forecast by USDA in September
CBOT-SOYOIL - October
Choppy. Spillover support from soybeans offsets declines in crude oil.
FCPO-KUALA LUMPUR, Oct 9 (Reuters) - Malaysian crude palm oil futures soared 6.5 percent on Thursday, recouping gains from a recent sell-off as some traders sensed a floor to the market.
The benchmark December contract
Other traded months rose between 25 and 125 ringgit <0#KPO:>. Overall volume nearly doubled to 19,498 lots of 25 tonnes.
REGIONAL EQUITY-SINGAPORE, Oct 9 (Reuters) - Singapore and Thailand stocks rose on Thursday after coordinated global interest rate cuts calmed investors, with energy and commodity plays rebounding strongly.
Other markets edged lower in a cool response to the confidence-boosting efforts, while Indonesia kept its stock exchange shut a second day after the index lost over a fifth of its value this week.
Singapore <.FTSTI> rose 3.4 percent, while Thailand
Malaysia <.KLSE>, which has been outperforming the region in the last month, was off 0.1 percent, while the Philipine index <.PSI> fell 0.8 percent to a fresh 26-month low.
DJI Daily: plummeted for a seventh straight session
DJI sell down for seventh straight session without a chance to recover or rebound. Support at 8930-8680 was violated completely and currently we look at next support at 8240. While, upside resistance is at 9400-9500.
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