Wednesday, October 22, 2008

FCPO Daily: no turning back


Market no turning back and violated the recent low at 1593. We currently look for the immediate support at 1500-1510. Resistance is at 1635-1639 (gap left over today).

Trader's Comment: Malaysia CPO futures ended in a fresh two-years low again

Malaysia CPO futures ended in a fresh two-years low again amid a general sell off in commodities, primarily led by falling crude oil prices. Benchmark Jan09 initially open RM27 lower at 1625, tracking overnight NYMEX crude oil prices tumbled 4 percent as investors worries that production cut by OPEC might not be enough to offset weakening energy demand caused by global recession. Almost 200 points down in rival soy oil overnight also added selling pressures, this sent Benchmark Jan09 prices kept on falling without much turning back until it hit intra day low at 1542 in the afternoon session. This was mainly driven by the fell of crude oil prices that had drop more than $3 a barrel to below $70 level during Asian time trading. Later, some intra day short covering activities emerged and caused Benchmark Jan09 to bounce back a little and hover around 1580-1550 levels, before it settling at 1565, down RM 87. Market sentiment remains weak.

FKLI Daily: 888 manage to defend?


Market fall with double digit losses yet recent low at 888 remains defended well. Looks more potential of downside room if 888 penetrated. As for now, we continue to look for the immediate downside support at 888 followed by 876-872. For upside, immediate resistance is at 924.5-925.5 followed by 931-944 (gap left over since 15 Oct, 2008).

KLSE Daily: remain sideways


KLSE continue its correction phase between 888 to 930. Looks may heading to test the recent low at 888 level.

Breaking News-RTRS-India likely to tax edible oil imports - govt

NEW DELHI, Oct 22 (Reuters) - India is likely to impose a tax on edible oil imports next month, Farm Minister Sharad Pawar said on Wednesday.

The government may also scrap an export tax on basmati rice but has no plan to relax the ban on shipments of cheaper grades of rice, he told reporters.

Breaking News-RTRS-Big fall in Brazil's soybean crop looms-Oil World

HAMBURG, Oct 21 (Reuters) - Brazil could be facing a fall in its soybean crop for harvesting in early 2009 of one to three million tonnes because of poor weather and low fertilizer use reducing yields, Hamburg-based oilseeds analysts Oil World said on Tuesday.

Breaking News-RTRS-UPDATE 2-Malaysia ponders steps to tackle plunging palm oil

KUALA LUMPUR, Oct 21 (Reuters) - The Malaysian government postponed a parliamentary meeting meant to address tumbling palm oil prices but pledged to take "prudent measures" to support small planters who could be hit hard if prices continue to fall.
Malaysia had been expected to announce steps on Tuesday to staunch the fall in prices at the meeting headed by Prime Minister Abdullah Ahmad Badawi, but instead opted to move back the meeting to Oct. 30. A leading industry analyst warned that the worst of the sell-off was not yet over.
Deputy Prime Minister Najib Razak told a planters group that Malaysia, the world's second largest palm producer, was taking the impact of falling palm oil prices "seriously", although it would not take any panicky action.

Trader's Highlight

DJI-NEW YORK, Oct 21 (Reuters) - U.S. stocks skidded on Tuesday, as commodity shares fell on fears of a global recession and a rash of disappointing earnings heightened
worries about the deteriorating profit picture.

The Dow Jones industrial average <.DJI> fell 231.77 points, or 2.50 percent, to close at 9,033.66, while the Standard & Poor's 500 Index <.SPX> shed 30.35 points, or 3.08 percent, to 955.05, just above its low for the day. The Nasdaq
Composite Index <.IXIC> dropped 73.35 points, or 4.14 percent, to 1,696.68, near its session low.

NYMEX-NEW YORK, Oct 21 (Reuters) - Oil prices tumbled 4 percent on Tuesday amid worries that a global recession would crush fuel demand, limiting the impact of any supply cuts by OPEC.

U.S. crude for November delivery , which expired on Tuesday, settled down $3.36 at $70.89 a barrel. London Brent crude settled down $2.31 at $69.72 a barrel.

CBOT-SOYBEANS
- November down 21 cents at $9.08 per bushel, January down 25-1/2 at $9.15-1/4.

Pressured by declines in crude oil amid recession jitters; firmer dollar also bearish. Traders taking profits after Monday's rally.

CBOT-SOYOIL - December down 1.81 cents at 35.80 cents per lb. Pressured by declines in soybeans and crude oil.

FCPO-KUALA LUMPUR, Oct 21 (Reuters) - Malaysian crude palm oil futures ended 1.5 percent lower on Tuesday after a leading industry analyst gave a bearish forecast amid losses in global vegetable oil markets.

The market was also pressured when Malaysia, the world's second-largest producer of palm oil, pushed back a key cabinet meeting on boosting palm oil prices to next week from Tuesday because several ministers were unable to attend.

The benchmark January palm contract on Bursa Malaysia's Derivatives Exchange settled down 25 ringgit at 1,652 ringgit ($486) per tonne after going as low as 1,639 ringgit.

REGIONAL EQUITIES-SINGAPORE, Oct 21 (Reuters) - Most Southeast Asian stock markets edged higher on Tuesday as investors bet government rescue efforts would ease the global credit crisis and stabilise volatile financial markets.

The Philippine index <.PSI> led the day's gains, rising 2.6 percent, with Vietnamese shares <.VNI> up 2.5 percent, Malaysia <.KLSE> 1 percent, Indonesia <.JKSE> 0.9 percent and Thailand <.SETI> 0.4 percent.

But Singapore shares <.FTSTI> surrendered early gains to close down 1 percent, pressured by losses in Hong Kong. Hong Kong's Hang Seng index <.HSI> was weighed down by conglomerate CITIC Pacific <0267.HK>, which lost more than half its market value after it warned of forex losses amounting to nearly $2 billion.

DJI Daily: Correction phase extended


Market extended its correction phase. Thus, we continue to look for the support at 8718. Upside resistance remains at 9427-9448 followed by 9628 level.