Thursday, December 18, 2008
Trader's Comment: CPO futures ended lower on weak market sentiment.
CPO futures ended lower on weak market sentiment. Benchmark Mar09 hit the intra day low of 1539 after opened RM21 lower at 1559 following overnight easier CBOT soy oil while crude oil fell to hit fresh 4 year low at $39.88. However, CPO prices were well supported and thereafter hovered in a tight range of 1555-1545 for the remaining morning session. Some short covering activities began to emerge when afternoon session resumes and sent Benchmark Mar09 to climb back gradually. It hit the intra day high of 1575 before it was finally sold down again to settle RM35 lower at 1545. Market tone was still in a cautious mood and remained in range trading. Meanwhile CPO prices seem to be experiencing some slight decoupling from the effect of crude oil movement.
Breaking News-RTRS-UPDATE 1-Argentina cuts wheat output, soy area forecasts
BUENOS AIRES, Dec 17 (Reuters) - Argentina's Agriculture Secretariat on Wednesday slashed its estimate for 2008/09 wheat production to 9 million tonnes from the 10.1 million tonnes it forecast last month, due mainly to the impact of dry weather.
The outlook for the country's top crop, soybeans, is also slightly less favorable. The government cut its forecast for 2008/09 soybean seeding area to 17.8 million hectares (44 million acres), from 18.0 million hectares last month.
The outlook for the country's top crop, soybeans, is also slightly less favorable. The government cut its forecast for 2008/09 soybean seeding area to 17.8 million hectares (44 million acres), from 18.0 million hectares last month.
Breaking News-RTRS-UPDATE 6-OPEC makes deepest oil cut ever to rescue prices
ORAN, Algeria, Dec 17 (Reuters) - OPEC oil ministers agreed their deepest output cut ever on Wednesday, cutting 2.2 million barrels per day from oil markets in a race to balance supply with rapidly crumbling demand for fuel.
The cut, effective Jan. 1, comes atop existing curbs of 2 million bpd agreed by OPEC since September. It lowers the supply target for the 11 members bound by output limits to 24.845 million bpd -- down nearly 15 percent from September output.
The cut, effective Jan. 1, comes atop existing curbs of 2 million bpd agreed by OPEC since September. It lowers the supply target for the 11 members bound by output limits to 24.845 million bpd -- down nearly 15 percent from September output.
Breaking News-RTRS-UPDATE 1-Chrysler says to shut down all production for month
DETROIT, Dec 17 (Reuters) - Citing a credit crisis and dwindling sales, Chrysler LLC on Wednesday said it would shut down all of its manufacturing operations from the end of this week for at least a month.
The blanket shutdown marked a deepening of the financial crisis for the embattled U.S. auto industry and came as Chrysler and its larger rival General Motors Corp both seek to shore up cash as they seek a federal bailout they say they need to survive.
The blanket shutdown marked a deepening of the financial crisis for the embattled U.S. auto industry and came as Chrysler and its larger rival General Motors Corp
Breaking News-RTRS-UPDATE 7-Morgan Stanley posts big loss; market hopes worst over
NEW YORK, Dec 17 (Reuters) - Morgan Stanley reported a much wider-than-expected $2.2 billion quarterly loss on Wednesday on plummeting markets and poor trading moves, while banking and brokerage fees sank.
It was the bank's second loss in the last five quarters, and six times deeper than expected, driven by a laundry list of setbacks: $1.7 billion in writedowns of leveraged buyout loans, $800 million in writedowns of assets held in bank units and $1.8 billion in principal investment losses.
It was the bank's second loss in the last five quarters, and six times deeper than expected, driven by a laundry list of setbacks: $1.7 billion in writedowns of leveraged buyout loans, $800 million in writedowns of assets held in bank units and $1.8 billion in principal investment losses.
Trader's Highlight
DJI-NEW YORK, Dec 17 (Reuters) - U.S. stocks fell on Wednesday as the government's effort to stave off a deep economic recession raised worries about mounting public debt and blunted optimism following the Fed's sharp rate cut on Tuesday.
The Dow Jones industrial average <.DJI> shed 99.80 points, or 1.12 percent, to 8,824.34. The Standard & Poor's 500 Index <.SPX> fell 8.76 points, or 0.96 percent, to 904.42. The Nasdaq Composite Index <.IXIC> fell 10.58 point, or 0.67 percent, to
1,579.31.
Financial stocks were unable to sustain their gains despite an analyst note that said Morgan Stanley's poor results announced on Wednesday were not likely to be repeated.
NYMEX-NEW YORK, Dec 17 (Reuters) - Oil prices dropped to their lowest in more than four years on Wednesday after OPEC announced a record supply cut that dealers said may fail to fully offset slumping world energy demand.
U.S. crude oil prices fell $3.54 to settle at $40.06 a barrel after dipping below $40 for first time since July 2004. London Brent fell $1.12 to $45.53.
The Organization of the Petroleum Exporting Countries, eager to push prices back up, announced on Wednesday an agreement to cut 2.2 million barrels per day of output starting Jan. 1, the biggest single reduction on record.
CBOT-SOYBEANS - January up 5-1/2 cents to $8.64 a bushel. Began moving higher after Argentina denied studying cut to soy export taxes. Soy also supported by falling dollar and dry weather in Argentina.
CBOT-SOYOIL - January down 0.35 cent at 31.00 cents/lb. Turns lower as crude oil slid. Soymeal/soyoil spreading noted in late trade.
FCPO-JAKARTA, Dec 17 (Reuters) - Malaysian palm futures rose more than 2 percent on Wednesday, boosted by a rally in crude oil, sparked by expectations OPEC will agree a deep cut in oil output to rescue prices.
The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange rose 35 ringgit, or 2.27 percent, to 1,580 ringgit ($448) per tonne.
Other traded contracts rose between 34 and 55 ringgit. The overall volume was thin at 6,905 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Dec 17 (Reuters) - Most Southeast Asian stocks gained on Wednesday, cheered by a rate cut by the U.S. Federal Reserve, with Sime Darby pushing Malaysia to a two-week high and Thai shares up for a seventh day as the political climate calmed.
Singapore's benchmark Straits Times Index <.FTSTI> drifted 0.16 percent lower at the close. In Kuala Lumpur, the benchmark index <.KLSE> closed up 0.9 percent.
Thailand's main stock index <.SETI> ended up a mere 0.14 percent. Indonesia's main index <.JKSE> gained 1.6 percent, ending slightly below its intra-day high of 1,376.10.
The Dow Jones industrial average <.DJI> shed 99.80 points, or 1.12 percent, to 8,824.34. The Standard & Poor's 500 Index <.SPX> fell 8.76 points, or 0.96 percent, to 904.42. The Nasdaq Composite Index <.IXIC> fell 10.58 point, or 0.67 percent, to
1,579.31.
Financial stocks were unable to sustain their gains despite an analyst note that said Morgan Stanley's
NYMEX-NEW YORK, Dec 17 (Reuters) - Oil prices dropped to their lowest in more than four years on Wednesday after OPEC announced a record supply cut that dealers said may fail to fully offset slumping world energy demand.
U.S. crude oil prices
The Organization of the Petroleum Exporting Countries, eager to push prices back up, announced on Wednesday an agreement to cut 2.2 million barrels per day of output starting Jan. 1, the biggest single reduction on record.
CBOT-SOYBEANS - January
CBOT-SOYOIL - January
FCPO-JAKARTA, Dec 17 (Reuters) - Malaysian palm futures rose more than 2 percent on Wednesday, boosted by a rally in crude oil, sparked by expectations OPEC will agree a deep cut in oil output to rescue prices.
The benchmark March palm oil contract
Other traded contracts rose between 34 and 55 ringgit. The overall volume was thin at 6,905 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Dec 17 (Reuters) - Most Southeast Asian stocks gained on Wednesday, cheered by a rate cut by the U.S. Federal Reserve, with Sime Darby pushing Malaysia to a two-week high and Thai shares up for a seventh day as the political climate calmed.
Singapore's benchmark Straits Times Index <.FTSTI> drifted 0.16 percent lower at the close. In Kuala Lumpur, the benchmark index <.KLSE> closed up 0.9 percent.
Thailand's main stock index <.SETI> ended up a mere 0.14 percent. Indonesia's main index <.JKSE> gained 1.6 percent, ending slightly below its intra-day high of 1,376.10.
FKLI Daily: may move sideways to bias upside potential
Immediate daily technical landscape looks brighten up following prices stayed firm at 870 level. Potential of sideways to bias upside potential is there if market manage to maintain its fighting spirit. To the upside, we are looking the resistance at 876.5-877 followed by 891-891.5. While, downside support is pegged at 853.5-850.
KLSE Daily: improve a little
Market improved a little following 858-860 immediate resistance was violated after stuck in sideways for some times. Looks market may want to challenge again the gap left over since 19/11/2008 at 869-876 level. For downside, support is pegged at 857-855 (gap left over yesterday).
DJI Daily: gain ease off
Lack of follow through after the day with triple digit gain and eased off to end lower. We still maintain our sideways to little upside potential view in near term market. Currently, continue to look at the resistance at 9000-9160. For downside, support is remains at 8347-8335.
FCPO Daily: holding at 1500 mark
Market continues to hold at 1500 mark and recover a little from yesterday losses. looks market may extend its sideways move with immediate support remains at 1520-1500 followed by 1487-1475. For upside, immediate resistance is at 1600-1610 followed by 1630-1640.
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