Wednesday, January 14, 2009
Trader's Comment: CPO futures ended broadly higher after a range trading mood
CPO futures ended broadly higher after a range trading mood. Benchmark Mar09 gapped up RM35 to open at 1865 following overnight NYMEX crude oil and CBOT soy complex settled slightly higher. It hit the day high and day low level shortly after market opened at 1894 and 1856 respectively. Thereafter, it began to hover around that range through out the day. The fact that other commodities market continued their rally in Asian time trading where crude oil traded above $39 and eCBOT soy complex also inched higher had provided a steady support on the local CPO prices. Benchmark Mar09 finally settled RM54 higher at 1884. The fear of bad weather in South America had also helped lifted the sentiment in the global vege oil market.
Trader's Highlight
DJI-NEW YORK, Jan 13 - The Dow fell for the fifth straight day on Tuesday as investors fretted over what many expect will be a gloomy earnings season, overshadowing a boost in financials on bets U.S. authorities will take toxic assets off banks' balance sheets.
But the S&P 500 and Nasdaq ended higher as rising oil prices lifted energy shares and biotechnology companies gained as investors bet they will be among the few sectors with growing earnings.
The Dow Jones industrial average was down 25.41 points, or 0.30 percent, at 8,448.56. The Standard & Poor's 500 Index rose 1.53 points, or 0.18 percent, to 871.79. The Nasdaq Composite Index was up 7.67 points, or 0.50 percent, at 1,546.46.
NYMEX-NEW YORK, Jan 13 - U.S. crude oil futures staged a late rally on Tuesday, ending the session higher amid cold weather and news of output cuts buy Saudi Arabia.
Gains were limited, however, as traders turned their focus on weekly inventory data due on Wednesday, for which forecasts called for stock builds across the board.
"Products led the market higher but ... expectations for more inventory builds may be starting to weigh on the market," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut.
On the New York Mercantile Exchange, February crude settled up 19 cents, or 0.51 percent, at $37.78 a barrel, trading from $36.10 to $39.50.
CBOT-SOYBEANS - January up 15-1/2 cents at $9.69-1/2 per bushel, March up 5-1/2 cents at $9.71-1/2 a bushel.
Support from drought in Argentina, the world's third largest soy exporter, and continued Chinese buying of U.S. soybeans. Dropped from the day's lows in late trade on fund rebalancing.
CBOT-SOYOIL - January up 0.42 cent at 34.60 cents a pound, March up 0.42 cent at 34.83 cents a pound.
Drought in Argentina, the world's largest soyoil exporter, supported prices.
FCPO-KUALA LUMPUR, Jan 13 - Malaysian crude palm oil futures tumbled by as much as 9.6 percent to a week's low on Tuesday as investors kicked off a selling spree after overnight losses in soyoil and crude markets, ignoring a fall in domestic stocks.
Falling stocks have boosted prices of palm oil, used in a range of products from biscuits to biofuel, by 35 percent since an Oct 28. low of 1,331 ringgit, but fears of further weakening in global demand for vegetable oils and crude oil have spooked sentiment.
The benchmark March contract on the Bursa Malaysia Derivatives Exchange fell as much as 191 ringgit to stand at 1,797 ringgit ($502.7) per tonne, a level unseen since Jan. 5. The contract then closed down 158 ringgit at 1,830 ringgit.
REGIONAL EQUITIES-BANGKOK, Jan 13 (Reuters) - Thai stocks hit a 3-week low on Tuesday as shares in PTT group extended falls in response to downbeat earnings forecasts and weaker oil prices, while fears of corporate profitability pulled other markets lower.
Thailand's main SET index dropped 4.2 percent to its lowest since Dec. 23, with top energy firm PTT falling for a third day, down 7.1 percent to a more than 1-month low after warnings of larger-than-expected losses for the fourth quarter.
Singapore's stock index ended 0.81 percent lower at its lowest since Dec. 31, with financials leading decliners.
Malaysia lost 1.07 percent, with plantation IOI Corp down 5 percent on the back of falling crude prices. Indonesian stocks fell 0.48 percent with Telkom Indonesia 2.9 percent lower.
But the S&P 500 and Nasdaq ended higher as rising oil prices lifted energy shares and biotechnology companies gained as investors bet they will be among the few sectors with growing earnings.
The Dow Jones industrial average was down 25.41 points, or 0.30 percent, at 8,448.56. The Standard & Poor's 500 Index rose 1.53 points, or 0.18 percent, to 871.79. The Nasdaq Composite Index was up 7.67 points, or 0.50 percent, at 1,546.46.
NYMEX-NEW YORK, Jan 13 - U.S. crude oil futures staged a late rally on Tuesday, ending the session higher amid cold weather and news of output cuts buy Saudi Arabia.
Gains were limited, however, as traders turned their focus on weekly inventory data due on Wednesday, for which forecasts called for stock builds across the board.
"Products led the market higher but ... expectations for more inventory builds may be starting to weigh on the market," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut.
On the New York Mercantile Exchange, February crude settled up 19 cents, or 0.51 percent, at $37.78 a barrel, trading from $36.10 to $39.50.
CBOT-SOYBEANS - January up 15-1/2 cents at $9.69-1/2 per bushel, March
Support from drought in Argentina, the world's third largest soy exporter, and continued Chinese buying of U.S. soybeans. Dropped from the day's lows in late trade on fund rebalancing.
CBOT-SOYOIL - January up 0.42 cent at 34.60 cents a pound, March up 0.42 cent at 34.83 cents a pound.
Drought in Argentina, the world's largest soyoil exporter, supported prices.
FCPO-KUALA LUMPUR, Jan 13 - Malaysian crude palm oil futures tumbled by as much as 9.6 percent to a week's low on Tuesday as investors kicked off a selling spree after overnight losses in soyoil and crude markets, ignoring a fall in domestic stocks.
Falling stocks have boosted prices of palm oil, used in a range of products from biscuits to biofuel, by 35 percent since an Oct 28. low of 1,331 ringgit, but fears of further weakening in global demand for vegetable oils and crude oil have spooked sentiment.
The benchmark March contract on the Bursa Malaysia Derivatives Exchange fell as much as 191 ringgit to stand at 1,797 ringgit ($502.7) per tonne, a level unseen since Jan. 5. The contract then closed down 158 ringgit at 1,830 ringgit.
REGIONAL EQUITIES-BANGKOK, Jan 13 (Reuters) - Thai stocks hit a 3-week low on Tuesday as shares in PTT group extended falls in response to downbeat earnings forecasts and weaker oil prices, while fears of corporate profitability pulled other markets lower.
Thailand's main SET index dropped 4.2 percent to its lowest since Dec. 23, with top energy firm PTT falling for a third day, down 7.1 percent to a more than 1-month low after warnings of larger-than-expected losses for the fourth quarter.
Singapore's stock index ended 0.81 percent lower at its lowest since Dec. 31, with financials leading decliners.
Malaysia lost 1.07 percent, with plantation IOI Corp down 5 percent on the back of falling crude prices. Indonesian stocks fell 0.48 percent with Telkom Indonesia 2.9 percent lower.
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