Trader's Comment: Palm oil futures trimmed some of its gain but remain in positive territory

Palm oil futures trimmed some of its gain but remain in positive territory, Benchmark Jan09 initially open RM51 higher at 1660, and hit the day high of 1696, tracking the rally of NYMEX crude oil when it advanced more than 4% higher during Asian time zone, boosted by China’s $586 billion stimulus plan to help sustain its growth. US eCBOT soy complex and Dalian palm also follow suit. Nevertheless, CPO prices was immediately drag down and hit the intra day low at 1612, after the release of export data by private cargo surveyor ITS and SGS which posted a fell of 5.3% and 9.0% respectively. Furthermore, official Oct supply and demand data released by MPOB, showed a record level of 2,086,452 tonnes of end stocks. These bearish news had provide suppressing pressure on CPO prices, even though other vegetable oil market had gained handsomely on the back of crude oil. However, supporting news such as the purchased of 30,000 tonnes of soy oil by China, and also the plan to buy 150,000 tonnes of palm oil by Thai government, provided some support at the lower end. Benchmark Jan09 then traded at a range of 1642-1618 for the rest of the day, and settled at 1626.

FCPO Daily: range trading

Nothing much changes on the immediate daily technical outlook as market still stuck in range. Resistance and support is at 1727-1734 and 1548-1539 level respectively.

FKLI Daily: close at day HIGH

Market momentum improve further following prices close at day high and manage to sustain above 900 mark. Looks may extend its bias upside potential. We currently look for the resistance at 931-944 (gap left over at 15 Oct, 2008). Support is at 863.5-862.5.

KLSE Daily: eyeing upside gap

Market extended its gaining ground to survive above 900 mark. Looks may heading to cover the upside gap left over since 5th Nov, 2008 at 900-913. We currently pegged the support at 868-867.

Breaking News-DJ- India Govt Cos Halt Edible Oil Imports As Local Prices Fall

NEW DELHI (Dow Jones)--India''s government agenices have halted imports of edible oils for a government-run program with immediate effect after a fall in local prices and due to a poor response to the program from provinces, a senior food ministry official said Monday.

"We have decided to stop imports at the moment. There will be no imports until (domestic) prices remain low," said the official, who didn''t wish to be named.

The official said government agencies have purchased 360,000 metric tons of edible oils since mid-April for the subsidized sale program, leading to sharp fall of 18%-20% in domestic prices.

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-India may resume trade in four commodities futures-regulator

MUMBAI, Nov 8 (Reuters) - India may resume futures trade in four suspended agricultural commodities from December as prices soften, while a decision would be delayed on four others, an official with the commodity futures regulator said on Saturday.

In May, the federal government bowed to demands from its Leftist allies to suspend trading in soyoil, chickpea, rubber and potato futures for four months, alleging these futures played a major role in stoking inflation.

The ban was further extended till November due to inflationary pressures.

Breaking News-RTRS-UPDATE 2-Malaysia struggling to sell palm oil on recession

KUALA LUMPUR, Nov 7 (Reuters) - Malaysia faces an uphill task in exporting its surplus palm oil thanks to a deepening global recession and environmentalist pressure over biofuels, a minister said on Friday.
Commodities Minister Peter Chin said with palm oil output expected to top 18 million tonnes in 2009, the government will work with largest producer Indonesia to cut supplies through replanting schemes and aim to revive domestic demand through biodiesel mandates.
Both Southeast Asian nations will also embark on a campaign against European Union's proposal for tough eco-standards for biofuels, which also include Germany's proposal for the exclusion of palm oil for biodiesel use.

Trader's Highlight

DJI-NEW YORK, Nov 7 (Reuters) - U.S. stocks rose on Friday as bargain hunters scooped up shares at multiyear lows after a big drop in the October payrolls was less dire than feared.

Stocks pared gains immediately after a news conference by President-Elect Barack Obama on some disappointment that he did not outline any new additional steps to shore up the ailing economy in the near term. But stocks recovered by the close.

The Dow Jones industrial average <.DJI> climbed 248.02 points, or 2.85 percent, to 8,943.81. The Standard & Poor's 500 Index <.SPX> advanced 26.11 points, or 2.89 percent, to 930.99. The Nasdaq Composite Index <.IXIC> shot up 38.70 points, or 2.41 percent, to 1,647.40.

NYMEX-NEW YORK, Nov 7 (Reuters) - U.S. crude oil futures ended with pared gains on Friday, having risen as the dollar weakened, but stymied by economic worries amid a bleak jobs report.

Pre-weekend short-covering after Thursday's dive to a 19-month low on Thursday and U.S. equities were up, helped keep oil futures on the plus side.

On the New York Mercantile Exchange, December crude settled up 27 cents, or 0.44 percent, at $61.04 a barrel, trading from $59.97 to $62.82. The session low took prices below $60 for the first time since March 22, 2007, when prices hit $59.95.

CBOT-SOYBEANS - November up 12-1/4 cents at $9.11-3/4 per bushel. January up 15 cents at $9.21.

Technical bounce. Supported by strong export demand and firm cash markets. USDA expected to lower forecast for 2008 U.S. soybean crop on Monday and ending stocks outlook.

CBOT-SOYOIL - December down 0.27 cent at 33.90 cents per lb.

FCPO-KUALA LUMPUR, Nov 7 (Reuters) - Malaysian crude palm oil futures inched higher on Friday as investors focused on the weaker ringgit against the dollar rather than steep overnight losses in crude oil.

The benchmark January contract on the Bursa Malaysia Derivatives Exchange edged 10 ringgit higher to 1,609 ringgit ($453) per tonne by the end of the afternoon session.

Other traded months rose between 15 and 47 ringgit <0#KPO:>. Overall trade volume slipped to 9,780 lots at 25 tonnes each from the usual 10,000 lots.

DJI Weekly: Cap in range

DJI looks may extend its range trading in near term. Downside support is pegged at 7882-7929. While, upside resistance is at 9708-9794.