Wednesday, December 24, 2008

Trader's Comment: CPO futures surged higher in late trading amid market talk on good export data.

CPO futures surged higher in late trading amid market talk on good export data. Benchmark Mar09 initially opened RM9 higher at 1539 tracking some slight rebound of Asian time crude oil in the early trade after it fell overnight. It hit the morning high of 1561 but was dragged down again due to lack of follow through buying activities and thereafter trading in a range between 1555-1535 through out the morning session. Nevertheless, market sentiment slightly improved after second session resume trading as Benchmark Mar09 was well supported above 1545 level. It started to climb slowly in the last hour of trading to hit intra day high of 1564 before it finally settled RM29 higher at 1559. Rumors that 1-25 Dec export figures, which are due to release tomorrow, may achieve 1.35 million tonnes had also provided some supportive sentiment in the market.

Breaking News-RTRS-China quarantine warns on US soybean import quality

BEIJING, Dec 23 (Reuters) - China's quarantine bureau has warned the United States over the quality of imported soybeans after finding traces of harmful pesticides in one U.S. soy cargo, the bureau said in a statement on Tuesday.
The warning comes as China's government faces calls for import curbs because state purchases have pushed up prices and cheap imports have flooded the domestic market.

Trader's Highlight

DJI-NEW YORK, Dec 23 (Reuters) - U.S. stocks fell in thin trading on Tuesday on further deterioration in the housing market, while worry over weak consumer spending hurt retailers in the final stretch of the Christmas shopping season.

The Dow Jones industrial average <.DJI> lost 100.28 points, or 1.18 percent, to 8,419.49. The Standard & Poor's 500 Index <.SPX> slid 8.47 points, or 0.97 percent, to 863.16. The Nasdaq Composite Index <.IXIC> shed 10.81 points, or 0.71
percent, to 1,521.54. Markets will close early on Wednesday for Christmas Eve.

NYMEX-NEW YORK, Dec 23 (Reuters) - U.S. crude futures fell on Tuesday as concerns about falling demand in a weak economy continued to weigh on oil prices.

Trading was volatile as early lift from a weak dollar evaporated and weak economic data kept fears about sliding demand in a recession economy in focus.

On the New York Mercantile Exchange, February crude fell 93 cents, or 2.33 percent, to settle at $38.98 a barrel, trading from $37.79, a contract low, to $40.65.

CBOT-SOYBEANS - January up 14-1/2 cents at $9.01 a bushel. Market rallies to $9.00 strike price in January options. Concerns about dryness in South America and strong cash markets amid slow farmer sales and good export business with China underpinning soy market.

U.S. November soybean crush was 144.64 million bushels, according to Census Department data. Analysts had been expecting crushings between 145.5 and 146.5 million bushels.

CBOT-SOYOIL - January up 0.27 cent at 31.21 cents per lb. Choppy in thin holiday-type trade. Weakness in crude weighs.

November soyoil stocks were 2.562 billion pounds, Census said.

FCPO-KUALA LUMPUR, Dec 23 (Reuters) - Malaysian crude palm oil futures fell 3.6 percent on Tuesday, extending midday losses as the market tracked declines in other vegetable oils and crude prices hovered below $40 a barrel.

The benchmark March 2009 contract on Bursa Malaysia's Derivatives Exchange fell 58 ringgit to 1,530 Malaysia ringgit ($441.8) per tonne. Falls in other traded months <0#KPO:> ranged between 45 ringgit and 58 ringgit. Overall trade fell to 8,722 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Dec 23 (Reuters) - Most Southeast Asian stock markets fell on Tuesday amid signs of a deepening economic slump and as investors locked in profits ahead of the year-end holidays.

Singapore's benchmark Straits Time Index <.FTSTI> fell 1.2 percent to its lowest close since Dec. 5, with DBS Group , Southeast Asia's largest bank, slipping 3.5 percent and palm oil giant Wilmar sliding 5.8 percent.

Indonesia's main stock index <.JKSE> drifted 0.12 percent lower at the close after earlier touching 1,323.49 points, its lowest since Dec. 15.

Malaysia's main stock index <.KLSE> fell for a third day, down 0.3 percent, as palm plantation firm Kuala Lumpur Kepong dropped 2.2 percent and energy services firm KNM Group lost 3.7 percent.

DJI Daily: pre-Christmas mood


Market weakened further as players were in pre-Christmas mood. For downside, support remains at 8118-8140. while, upside resistance is at 8600-8680 level.

KLSE Daily: defended well


Market was trying to defend with a late session rebound to close at 870 mark. We maintain our view on sideways to little bias upside potential in near term market. Continue to look for the resistance at 880. Downside support is pegged at 858-853.

FKLI Daily: Surprise !!


Market gives a surprise move with prices manage to recoup from early losses to end in positive territory. Support at 869.5-865 was tested in intra-day basis. As for now,we look for the next support at 863.5-862.5. For upside, resistance is at 891.5-897.5.

FCPO Daily: ranging between 1500-1600


Market fully covered the downside gap at 1569-1548 to end at day low yet it manage to stay firm at 1500 mark. Market likely to continue its rangy mode in near term. For upside, resistance is at 1596-1600. Downside support is pegged at 1509-1487