Thursday, January 29, 2009

Trader's Comment: Palm oil futures slid down further as it continued losing its momentum in a very quiet trading day.

Palm oil futures slid down further as it continued losing its momentum in a very quiet trading day. Benchmark Apr09 immediately hit the morning low of 1755 after a mix start at 1786. Easier eCBOT coupled with gloomy market sentiment sent prices to slid lower to 1755 before it bounced back to close at 1776 for the morning break. Prices continue to be under pressure but trading in thin and lack luster mood. It hovered mostly between 1750 to 1760 before a late selling activity emerged and sent Benchmark Apr09 to intra day low at 1739 before it finally settled RM37 lower at 1745. Total daily volume remains thin as many traders were still away for the Chinese New Year holiday.

Trader's Highlight

DJI-NEW YORK, Jan 28 (Reuters) - U.S. stocks rose on Wednesday, capping the S&P 500's longest winning streak since November, as financial stocks soared on optimism the Obama administration was making progress on a plan to relieve banks of money-losing assets.

Stocks initially added gains following the Federal Reserve's statement that it is prepared to buy long-term U.S. government debt, but the boost faded upon the realization that the Fed's purchases won't be made any time soon.

The Dow Jones industrial average <.DJI> finished up 200.72 points, or 2.46 percent, at 8,375.45. The Standard & Poor's 500 Index <.SPX> climbed 28.38 points, or 3.36 percent, to 874.09. The Nasdaq Composite Index <.IXIC> ended up 53.44 points, or 3.55 percent, at 1,558.34.

When trading resumes on Thursday, investors are also likely to focus on the U.S. House of Representatives' approval late Wednesday of an $825 billion economic stimulus bill. The House voted 244 to 188 to pass the bill containing President
Barack Obama's program for emergency spending and tax cuts. The measure next goes to the U.S. Senate for debate, starting probably sometime next week.

NYMEX
-NEW YORK, Jan 28 (Reuters) - U.S. crude futures ended higher on Wednesday, supported by a rally in refined product futures and despite U.S. government data showing a much larger-than-expected weekly build in oil stocks.

On the New York Mercantile Exchange, March crude settled up 58 cents, or 1.39 percent, at $42.16 a barrel, trading from $40.60 to $43.60. Tuesday's 9.08 percent loss was the steepest in percentage terms since prices dropped 12.25
percent on Jan. 7.

CBOT-SOYBEANS - March up 6-1/2 cents at $9.82-1/2 a bushel; May up 6-1/4 at $9.90. Technical buying after slipping below $10 on Tuesday. Worries about smaller South American crop despite recent rains in Argentina, third largest soy exporter, and forecasts for more, weigh.

Paraguay estimated its 2008/09 soybean crop at 3.8 million tonnes, 43 percent below the previous harvest of 6.8 million due to drought.

Brazil soy crop revised down to 57.7 million tonnes-AgRural.

Analysts expect U.S. Census Bureau to report December soy crush at 139.8-141.5 million bushels, versus 144.6 million in November. [

CBOT-SOYOIL - March up 0.14 cent at 32.91 cents per lb. Turned up with soybeans. Crude also firmer, rebounding from Tuesday's big drop on outlooks for government to report bigger weekly crude and gasoline stocks.

FCPO-KUALA LUMPUR, Jan 28 (Reuters) - Malaysian crude palm oil futures slid 2.6 percent on Wednesday in light post-holiday trading after crude oil slumped and a cargo surveyor reported slower sales, fanning demand concerns.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled down 48 ringgit at 1,782 ringgit($497.1) a tonne.

Other traded contracts fell between 34 ringgit and 50 ringgit. Overall volume dropped to 6,079 lots

REGIONAL EQUITIES-BANGKOK, Jan 28 (Reuters) - Singapore shares closed at their
highest in two weeks and Malaysian shares rose almost one percent on Wednesday after a two-day holiday, with Singapore's financials and Malaysia's plantation firms leading gainers.

Traders said investors were pumping cash into Singapore financials amid hopes that U.S. President Barack Obama's new stimulus package may help ease the credit crisis.

DJI Daily: 8000 mark defended well


Market spike up after stuck in range trading for quite sometimes. 8000 mark so far provide a good support. Resistance is now looking at 8600.

KLSE Daily: in steady move


Market remains calm and steady. Currently, we look for the resistance at 888-889 (gap left over on 20/1/2009). Downside support is at 868-867.

FKLI Daily: gaining ground


Market gaining ground following a long white candle printed after cover gap at 883.5-887 had brighten up the immediate technical outlook. As for now, we look for the upside resistance at 902.5-907 (gap left over since 14/1/2009). downside support is pegged at 872-870.5 (gap left over on 28/1/2009).

FCPO Daily: 1800 mark violated


Market continue to lose ground after 1800 mark failed to hold. We now looking for the downside support at 1738-1723. While, upside resistance at 1815-1825 (gap left over on 28/1/2009).

Trader's Comment: CPO futures declined after the Lunar New Year break

CPO futures declined after the Lunar New Year break following a sharp fall of more than USD 3/barrel in NYMEX crude oil and losses in CBOT soyoil prices. Weak exports data for 1-25 day released by private cargo surveyors had added pressure to the market momentum. ITS reported at 952,478 (-29%) whereas SGS pegged at 1.016.477 (-24%) compare the same period in last month. News on Oil World cuts South American 2009 soy crop forecast following Argentine soy crop hit badly by the worst drought had lending some support to the local front. Benchmark Apr 09 prices bounced back from the intra-day low at 1770 to close at 1803, down RM 27 by midday break. However, late liquidation activities emerged once prices unable to sustain further at 1800 mark. Apr 09 then dipped to settle at 1782, down RM 48. Trading remained in dull mode and thin as lack of participant due to most players still away for Lunar New Year holiday. Total daily volume stood at 6,079 contracts changed hands.