Thursday, November 6, 2008
Trader's Comment: Palm oil futures drew back and give up yesterday’s gain as crude oil weaken further.
Palm oil futures drew back and give up yesterday’s gain as crude oil weaken further. Benchmark Jan09 initially open RM65 lower at 1575, following overnight NYMEX crude oil ended almost $5 lower, after the release of government data which showed high gasoline stock level, and this made traders more worried on demand. CPO prices immediately hit intra day low of 1548 after open and gradually climb up. Nevertheless, it failed in its attempt to close yesterday’s left over gap, and hit at the intra day high of 1607 only during afternoon session. The further fall of crude oil to the level below $65 during Asian time zone, coupled with weaker Dalian soy oil had further pressured local CPO prices. News that Malaysia government may not consider to scrap windfall tax on palm oil also provided more selling pressure on the already weak market sentiment. Benchmark Jan09 then fell again, but with the emerged of last hour of short covering activities, it settled at 1599, down by RM41 from yesterday’s settlement price.
Breaking News-RTRS-MALAYSIA MAY KEEP WINDFALL TAX ON PALM OIL DESPITE FALLING PRICES - COMMODITIES MINISTER
JAKARTA, Nov 6 (Reuters) - It was not necessary to consider scrapping a Malaysian windfall tax on palm oil products at the moment, Malaysian Plantation and Commodities Minister Peter Chin told Reuters on Thursday.
"In our last discussion with the finance minister if prices come to 2,000 ringgit then you have to make a decision (on the windfall tax)," Chin said during a visit to the Indonesian capital.
"But right now, it is irrelevant. There is no need to make a decision just yet," he said.
"In our last discussion with the finance minister if prices come to 2,000 ringgit then you have to make a decision (on the windfall tax)," Chin said during a visit to the Indonesian capital.
"But right now, it is irrelevant. There is no need to make a decision just yet," he said.
Breaking News-RTRS-IEA says oil to hit $100 on global recovery-paper
LONDON, Nov 6 (Reuters) - Oil prices will bounce back to over $100 a barrel when the global economy recovers and push past $200 by 2030, the International Energy Agency is due to say in a report next week, the Financial Times said on Thursday.
Breaking News-RTRS-PRN-American Palm Oil Council Applauds Tri-Rail's Switch to Biodiesel Fuel
LOS ANGELES, Nov. 5 /PRNewswire-USNewswire/ -- The American Palm Oil Council
(APOC), a U.S. association representing the Malaysian palm oil industry,
applauds the South Florida Regional Transportation Authority's decision to run
eight of 10 Tri-Rail locomotives on a 99 percent blend of either palm or soy
oil.
"Tri-Rail's move to biodiesel fuel is a clear statement of South Florida's
dedication to preserving the environment as well as a vote of confidence for
the palm oil industry. The transition is a great step forward, and we
encourage other transportation authorities in the United States to follow
South Florida's lead," said Mohd Salleh Kassim, APOC's executive director.
(APOC), a U.S. association representing the Malaysian palm oil industry,
applauds the South Florida Regional Transportation Authority's decision to run
eight of 10 Tri-Rail locomotives on a 99 percent blend of either palm or soy
oil.
"Tri-Rail's move to biodiesel fuel is a clear statement of South Florida's
dedication to preserving the environment as well as a vote of confidence for
the palm oil industry. The transition is a great step forward, and we
encourage other transportation authorities in the United States to follow
South Florida's lead," said Mohd Salleh Kassim, APOC's executive director.
Trader's Highlight
DJI-NEW YORK, Nov 5 (Reuters) - U.S. stocks plummeted on Wednesday, a day after Barack Obama's historic victory in the U.S. presidential election, as a fresh batch of dismal economic data underscored the massive challenges awaiting his
administration.
The drop marked Wall Street's biggest loss ever on the day after a presidential election, coming immediately on the heels of its biggest Election Day rally on record in the previous session.
The Dow Jones industrial average <.DJI> slid 486.01 points, or 5.05 percent, to 9,139.27. The Standard & Poor's 500 Index <.SPX> plunged 52.98 points, or 5.27 percent, to close at 952.77. The Nasdaq Composite Index <.IXIC> lost 98.48 points,
or 5.53 percent, to 1,681.64.
NYMEX-NEW YORK, Nov 5 (Reuters) - U.S. crude futures ended nearly $5 lower on Wednesday after government data showed gasoline stocks rose last week and raised more worries about demand.
Profit-taking after prices surged more than 10 percent on Tuesday, the dollar's gains versus the euro and a sharp slide on Wall Street also helped pull crude futures lower.
On the New York Mercantile Exchange, December crude settled down $5.23, or 7.42 percent, at $65.30 a barrel, trading from $65.01 to $70.46.
CBOT-SOYBEANS - November down 54-3/4 cents at $8.94-3/4 a bushel; January down 55 at $9.04.
Fell to day's lows late on technical selling, along with spillover pressure from crude oil, Wall Street and strength in the dollar. Spot November fell below $9 for first time in a week.
CBOT-SOYOIL - December down 1.95 cents at 34.02 cents per lb.Pressured by drop in crude oil following bearish weekly U.S. gasoline inventory data.
FCPO-KUALA LUMPUR, Nov 5 (Reuters) - Malaysian crude palm oil leapt as much as 9 percent on Wednesday as oil prices held some of the previous day's surge while financial markets perked up.
India's move to defer reimposing import duties on crude vegetable oil and Malaysia scrapping duties on imported fertiliser helped keep the palm market buoyant although fears of a deepening global recession later swept away some gains.
The benchmark January contract rose as much as 145 ringgit to 1,723 ringgit ($489) per tonne before settling up 62 ringgit at 1,640 ringgit.
REGIONAL EQUITIES-BANGKOK, Nov 5 (Reuters) - Southeast Asian stock markets
touched two-week highs on Wednesday as the victory of Barack Obama in the U.S. election triggered optimism about the global economy, with results fuelling buying in Singapore.
But a bout of profit-taking trimmed gains in some of the region's markets as investors turned their attention elsewhere after the election result.
Singapore's Straits Times Index <.FTSTI> rose 2.1 percent, with Sembcorp Marine up 10.9 percent and water firm Hyflux soaring 15 percent after they released strong quarterly results.
Malaysia's index <.KLSE> posted a gain for the fifth day, up 1.1 percent, but the Thai index <.SETI> drifted 0.1 percent lower, ending a four-day rise. Malaysia and Thailand announced fiscal stimulus packages this week to help blunt the blow from
the global economic slowdown.
Jakarta's stock index <.JKSE> snapped a five-day gain, ending down 0.3 percent. Philippine shares <.PSI> edged up 0.2 percent, and Vietnam stocks <.VNI> rose for a sixth day, adding 4.5
administration.
The drop marked Wall Street's biggest loss ever on the day after a presidential election, coming immediately on the heels of its biggest Election Day rally on record in the previous session.
The Dow Jones industrial average <.DJI> slid 486.01 points, or 5.05 percent, to 9,139.27. The Standard & Poor's 500 Index <.SPX> plunged 52.98 points, or 5.27 percent, to close at 952.77. The Nasdaq Composite Index <.IXIC> lost 98.48 points,
or 5.53 percent, to 1,681.64.
NYMEX-NEW YORK, Nov 5 (Reuters) - U.S. crude futures ended nearly $5 lower on Wednesday after government data showed gasoline stocks rose last week and raised more worries about demand.
Profit-taking after prices surged more than 10 percent on Tuesday, the dollar's gains versus the euro and a sharp slide on Wall Street also helped pull crude futures lower.
On the New York Mercantile Exchange, December crude
CBOT-SOYBEANS - November
Fell to day's lows late on technical selling, along with spillover pressure from crude oil, Wall Street and strength in the dollar. Spot November fell below $9 for first time in a week.
CBOT-SOYOIL - December
FCPO-KUALA LUMPUR, Nov 5 (Reuters) - Malaysian crude palm oil leapt as much as 9 percent on Wednesday as oil prices held some of the previous day's surge while financial markets perked up.
India's move to defer reimposing import duties on crude vegetable oil and Malaysia scrapping duties on imported fertiliser helped keep the palm market buoyant although fears of a deepening global recession later swept away some gains.
The benchmark January contract
REGIONAL EQUITIES-BANGKOK, Nov 5 (Reuters) - Southeast Asian stock markets
touched two-week highs on Wednesday as the victory of Barack Obama in the U.S. election triggered optimism about the global economy, with results fuelling buying in Singapore.
But a bout of profit-taking trimmed gains in some of the region's markets as investors turned their attention elsewhere after the election result.
Singapore's Straits Times Index <.FTSTI> rose 2.1 percent, with Sembcorp Marine
Malaysia's index <.KLSE> posted a gain for the fifth day, up 1.1 percent, but the Thai index <.SETI> drifted 0.1 percent lower, ending a four-day rise. Malaysia and Thailand announced fiscal stimulus packages this week to help blunt the blow from
the global economic slowdown.
Jakarta's stock index <.JKSE> snapped a five-day gain, ending down 0.3 percent. Philippine shares <.PSI> edged up 0.2 percent, and Vietnam stocks <.VNI> rose for a sixth day, adding 4.5
DJI Daily: biggest loss ever on the day after a presidential election
DJI reversed to end with its biggest loss ever on the day after a presidential election. The overall technical landscape remained stayed below the mid-term downtrend line. We continue to look for the resistance at 9794 followed by 10322 and support is pegged at 9080.
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