Monday, November 3, 2008

Trader's Comment: FCPO prices rose sharply to close at 10% limit amid strong gain in regional vegetable oil markets.

FCPO prices rose sharply to close at 10% limit amid strong gain in regional vegetable oil markets. Benchmark Jan09 initially open RM84 higher at 1599, as overnight crude oil closed higher. It then surged to close at morning high of 1634, following Dalian soy oil went up by its daily trading limit, coupled with eCBOT soybean oil which also rallied strongly during Asian trading time zone. Strong rebound in regional equity market also help lifted the bullish sentiment in local commodities market. Nevertheless, traders are still concerned about the overall outlook of slowing global demand and the build-up in vegetable oil stock levels as fears of global recession are still fresh in traders mind. Benchmark Jan09 eased off a little during afternoon session to hit afternoon low at 1602, but later aggressive short covering activities emerged and push Benchmark Jan09 prices to settle at daily 10% trading limit at 1666, in an active trading day.

FCPO Daily: market set to bottom out


Market looks firm with another day close at 10% daily limit up. Market looks get ready to bottom out in near term. We now look for the immediate resistance at 1727-1734 (gap left over since 15 Oct, 2008) followed by 1798-1825 (gap left over since (14 Oct, 2008). Downside support is pegged at 1593-1539 (gap left over today) followed by 1491-1441 (gap left over since 29 Oct, 2008)

FKLI Daily: eye on 900 mark


Sharp rebound extended had neutralised the immediate daily technical outlook. Market looks heading to challenge the immediate resistance at 900 mark followed by 918-920. For downside, support is pegged at 863-859.5.

KLSE Daily: straight up for 3 consecutuive trading day


Market extended gains for 3 consecutive trading day with a long white candle had further underpinned the market momentum. Looks technical rebound may continue in near term. We now look for the immediate resistance at 893-902 (gap left over since 22 Oct, 2008) followed by 913-914 (gap left over since 21 Oct, 2008). While, downside support is pegged at 869-867 followed by 853-848.

Market Outlook 2009



Title: Market Outlook 2009
Date: 13th December 2008
Time: 9.30am - 1.00pm
Venue: 11th Floor, Junior Auditorium, Plaza OSK, Jalan Ampang, 50450, Kuala Lumpur
Fees: Free of Charge(Refreshments will be provided)

To participate, kindly make RSVP with Ryan Chua or Ahmad Lokman at 03-27332238 / 03-21615489 or via e-mail at palmdesk@osk.com.my before 28 November 2008. Early registration is highly recommended due to limited seats.

Breaking News-RTRS-Indonesia group to act on India palm oil defaults-paper

NEW DELHI, Nov 3 (Reuters) - Some Indonesian palm oil suppliers have threatened to name and blacklist Indian firms which have reneged on import contracts as prices have fallen sharply, the Hindu Business Line reported on Monday.
Four major Indonesian edible oil exporters have teamed up to try to ensure contracts are honoured, the paper said, quoting an unidentified supplier from the world's biggest palm oil producer.
The paper said Indian traders who had defaulted on contracts to buy Indonesian oil after prices fell were now looking to source the edible oil through state trading agencies such as State Trading Corp of India .
The Indonesian suppliers' group wants the government-run agencies not to encourage the defaulters, the paper said.

Breaking News-RTRS-Malaysia's deputy premier wins top party post

KUALA LUMPUR, Nov 2 (Reuters) - Malaysia's deputy premier Najib Razak took the top post in the main ruling party on Sunday, virtually assuring his position as the country's next prime minister.

Trader's Highlight

DJI-NEW YORK, Oct 31 (Reuters) - U.S. stocks ended one of their worst months on record, but signs of further thawing in credit markets lifted battered shares on Friday.

The Dow Jones industrial average <.DJI> gained 144.32 points, or 1.57 percent, to 9,325.01. The Standard & Poor's 500 Index <.SPX> rose 14.66 points, or 1.54 percent, to 968.75. The Nasdaq Composite Index <.IXIC> climbed 22.43 points, or 1.32 percent, to 1,720.95.

NYMEX
-NEW YORK, Oct 31 (Reuters) - U.S. crude oil futures rallied in the closing minutes of Friday's session and settled nearly 3 percent higher, on pre-weekend short-covering, after being down earlier on demand worries due to a weakening economy.

On the New York Mercantile Exchange December crude settled at $67.81 a barrel, up $1.85, or 2.8 percent, after trading from $63.12 to $68.60.

CBOT-SOYBEANS
- November off 8-3/4 cents at $9.25-1/4 per bushel; January off 10 cents at $9.33. Rising dollar and continued recession worries drag soy to session lows.

CBOT-SOYOIL - December off 0.88 cent at 33.60 cents per lb. Strong dollar and a drop in soy weigh.

FCPO-JAKARTA, Oct 31 (Reuters) - Malaysian palm futures closed down nearly 3 percent on Friday after crude oil fell on weak U.S. third-quarter economic data that renewed demand worries, traders said.

News of stronger October palm oil exports estimated by two cargo surveyors failed to inspire the market, traders said.

The benchmark January contract on the Bursa Malaysia Derivatives Exchange dropped 45 ringgit, or 2.88 percent, to 1,515 ringgit ($426) per tonne.

Regional Equities
-SINGAPORE, Oct 31 (Reuters) - Southeast Asia stock markets closed mostly higher on Friday, led by Jakarta which gained more than 7 percent on a strong earnings report from its largest automobile distributor, PT Astra Internationl Tbk . Jakarta's main stock index <.JKSE> gained 7.06 percent, led by PT Astra whose stock jumped 19.9 percent after the firm report a 61 percent jump in nine-month net profit.

Elsewhere, Thai stocks <.SETI> rose 2.01 percent, Malaysian stocks <.KLSE> was up 1.18 percent, Vietnam stocks <.VNI> gained 3.11 percent and Philippines stocks <.PSI> was up 4.62 percent.

DJI Weekly: Consolidation


DJI manage to hold ground with recent low at 7882 mark defended well. Looks market may due for a consolidation in near term. We look for the resistance at 9794 followed by 10322 and support is pegged at 7882.

Trader's Comment: FCPO ended easier amid cautious trading ahead of pre-weekend.

FCPO ended easier amid cautious trading ahead of pre-weekend. Benchmark Jan09 initially opened RM60 lower at 1500 tracking overnight NYMEX crude oil lower closed after weak US 3rd quarter economic data released. However, Jan09 prices managed to recover after private cargo surveyor ITS released a stronger October export figures up 9.6% from last month. It then closed at 1529 for the lunch break. Afternoon session it resumed with easier tone due to Bank Of Japan announced a lower than expected cut in interest rate of merely 0.2%, this caused regional equity market to fall, which had spill over to local commodities market. Benchmark Jan09 opened at 1511 in the afternoon session, and trade in the range between 1498 and day high of 1539, before it settled at 1415. The statement made by Mr. Mistry who said that palm oil might go to 1200 level also provided some liquidation activities.