Wednesday, February 4, 2009
Trader's Comment: CPO futures continued to rally higher on stronger global vege oil market.
CPO futures continued to rally higher on stronger global vege oil market. Benchmark Apr09 hit intra day low of 1798 after it gap up RM14 during opening at 1802, following the early rebound of eCBOT soy oil after its overnight losses, coupled with Asian time crude oil extending its gains in the early trade. As global vege oil gaining more strength, this had helped to improve market sentiment and sent CPO prices to rise all the way up through out most of the sessions until it hit intra day high of 1852 in the afternoon session. Benchmark Apr09 then hovered between 1842-1822 level before it was finally pushed up and settled RM57 higher at 1845.
Breaking News-RTRS-Malaysia deputy PM to hold 'political' briefing
KUALA LUMPUR, Feb 4 (Reuters) - Malaysia's Deputy Prime Minister Najib Razak has called a press conference at 4 p.m. (0800 GMT) on Wednesday, amid increasing uncertainty about the political balance in a northern opposition-held state.
An aide to Najib, who will assume the premiership in March, said the briefing would address a "political" issue, but declined to give further details.
Two lawmakers from the Perak state government quit the opposition alliance in the last week, leaving it with a one-seat majority and sparking talk of defections which could result in the coalition losing control of the state.
The chief minister of Perak was reported by local media as having asked the Perak ruler for permission to dissolve the state assembly to pave the way for fresh polls in the state.
If Najib's National Front coalition gains control of Perak state, it would be a boost for the alliance which has lost two key by-elections in the last six months after suffering its worst performance in the March 2008 general election.
An aide to Najib, who will assume the premiership in March, said the briefing would address a "political" issue, but declined to give further details.
Two lawmakers from the Perak state government quit the opposition alliance in the last week, leaving it with a one-seat majority and sparking talk of defections which could result in the coalition losing control of the state.
The chief minister of Perak was reported by local media as having asked the Perak ruler for permission to dissolve the state assembly to pave the way for fresh polls in the state.
If Najib's National Front coalition gains control of Perak state, it would be a boost for the alliance which has lost two key by-elections in the last six months after suffering its worst performance in the March 2008 general election.
Breaking News-RTRS-Oil World cuts Argentina soy crop forecast again
HAMBURG, Feb 3 (Reuters) - Hamburg-based oilseeds analysts Oil World said on Tuesday it has again cut its 2009 soybean crop forecasts for key exporter Argentina, this time by one million tonnes, because of drought in the country.
It now estimates Argentina will harvest 43.0 million tonnes of soybeans in early 2009, down from its Jan 27 estimate of 44.0 million tonnes and down from the country's 2008 harvest of 46.7 million tonnes.
In early January Oil World expected Argentina to harvest 48.8 million tonnes this year.
But it has kept its current forecast of Brazil's 2009 crop of 57.5 million tonnes, down from 60.02 million tonnes harvested by Brazil in 2008.
It now estimates Argentina will harvest 43.0 million tonnes of soybeans in early 2009, down from its Jan 27 estimate of 44.0 million tonnes and down from the country's 2008 harvest of 46.7 million tonnes.
In early January Oil World expected Argentina to harvest 48.8 million tonnes this year.
But it has kept its current forecast of Brazil's 2009 crop of 57.5 million tonnes, down from 60.02 million tonnes harvested by Brazil in 2008.
Breaking News-RTRS-OPEC may consider new oil cut in March-source
LONDON, Feb 3 (Reuters) - OPEC will discuss a further supply cut of about 1 million barrels per day (bpd) when it meets in March if oil prices remain low, an OPEC source told Reuters on Tuesday.
Breaking News-RTRS-Global 2008/09 soyoil use to fall -Oil World
HAMBURG, Feb 3 (Reuters) - Global 2008/09 soyoil output and consumption is likely to fall with purchasing switching to palm oil, sunflower oil and rapeseed oil, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
It now estimates global Oct 2008/Sep 2009 soyoil production will fall to 36.88 million tonnes, down 0.9 million tonnes from its December estimate and down 0.8 million tonnes on 2007/08.
The key U.S. 2008/09 soyoil production will fall to 8.82 million tonnes from 9.33 million tonnes last season, it estimated. It expects U.S. 2008/09 soyoil exports to fall to 0.79 million tonnes from 1.32 million tonnes in 2007/08.
It now estimates global Oct 2008/Sep 2009 soyoil production will fall to 36.88 million tonnes, down 0.9 million tonnes from its December estimate and down 0.8 million tonnes on 2007/08.
The key U.S. 2008/09 soyoil production will fall to 8.82 million tonnes from 9.33 million tonnes last season, it estimated. It expects U.S. 2008/09 soyoil exports to fall to 0.79 million tonnes from 1.32 million tonnes in 2007/08.
Trader's Highlight
DJI-NEW YORK, Feb 3 (Reuters) - U.S. stocks rose on Tuesday as news of an alternative stimulus plan from Senate Republicans suggested lawmakers were moving closer to a package that would soften the blow of a deepening recession.
The Dow Jones industrial average <.DJI> jumped 141.53 points, or 1.78 percent, to 8,078.36. The Standard & Poor's 500 Index <.SPX> added 13.07 points, or 1.58 percent, to 838.51. The Nasdaq Composite Index <.IXIC> shot up 21.87 points, or 1.46 percent, to 1,516.30.
A group of Republican U.S. senators offered a $445 billion alternative plan to boosting the ailing economy, about half of which would be in the form of tax cuts. The plan is an alternative to the $885 billion package crafted by Democrats who control the Senate.
NYMEX-NEW YORK, Feb 3 (Reuters) - U.S. crude oil futures rebounded on Tuesday amid OPEC talk about more production cuts and as Wall Street rose on positive housing sales data for December.
In post-settlement trading on the New York Mercantile Exchange at 5 p.m. EST (2200 GMT) March crude was up 79 cents at $40.87 a barrel. It earlier settled up 70 cents, or 1.75 percent, at $40.78, trading from $39.65 to $41.17.
CBOT-SOYBEANS - March down 13-1/2 cents to $9.46 a bushel. Showers in drought-stricken Argentina, the world's third largest soy exporter, weigh on soybean futures. Concerns about waning demand for soy amid the global economic crisis also pressuring prices.
CBOT-SOYOIL - March down 0.23 cent at 31.53 cents a pound. Following soy lower but underpinned by early firm tone in crude oil.
FCPO-KUALA LUMPUR, Feb 3 (Reuters) - Malaysian crude palm futures covered little ground on Tuesday as some investors trimmed positions, discouraged by weaker export data, while others were looking to buy on recovering crude and soyoil markets.
The benchmark April contract settled up 9 ringgit at 1,788 ringgit ($494.2). Other traded contracts ranged between 23 ringgit gains to losses of 15 ringgit <0#KPO:>. Overall volume was 9,741 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Feb 3 (Reuters) - Southeast Asian stocks ended mixed
on Tuesday, with Singapore and Thailand rising on bargain hunting in financials such as DBS Group and Bangkok Bank, but growing worries over deepening recession kept other markets cautious.
Singapore's benchmark index <.FTSTI> gained 0.39 percent and Thai shares <.SETI> rose 0.65 percent as banks recouped recent falls, with Singapore's top lender DBS up 0.6 percent and Thailand's Bangkok Bank up 1.4 percent.
Malaysian shares <.KLSE> eased 0.5 percent, Indonesian shares <.JKSE> shed 0.5 percent, the Philippine index <.PSI> lost 0.4 percent and Vietnam <.VNI> fell for a second day, down 3 percent to a near 2-month low.
The Dow Jones industrial average <.DJI> jumped 141.53 points, or 1.78 percent, to 8,078.36. The Standard & Poor's 500 Index <.SPX> added 13.07 points, or 1.58 percent, to 838.51. The Nasdaq Composite Index <.IXIC> shot up 21.87 points, or 1.46 percent, to 1,516.30.
A group of Republican U.S. senators offered a $445 billion alternative plan to boosting the ailing economy, about half of which would be in the form of tax cuts. The plan is an alternative to the $885 billion package crafted by Democrats who control the Senate.
NYMEX-NEW YORK, Feb 3 (Reuters) - U.S. crude oil futures rebounded on Tuesday amid OPEC talk about more production cuts and as Wall Street rose on positive housing sales data for December.
In post-settlement trading on the New York Mercantile Exchange at 5 p.m. EST (2200 GMT) March crude
CBOT-SOYBEANS - March
CBOT-SOYOIL - March
FCPO-KUALA LUMPUR, Feb 3 (Reuters) - Malaysian crude palm futures covered little ground on Tuesday as some investors trimmed positions, discouraged by weaker export data, while others were looking to buy on recovering crude and soyoil markets.
The benchmark April contract
REGIONAL EQUITIES-BANGKOK, Feb 3 (Reuters) - Southeast Asian stocks ended mixed
on Tuesday, with Singapore and Thailand rising on bargain hunting in financials such as DBS Group and Bangkok Bank, but growing worries over deepening recession kept other markets cautious.
Singapore's benchmark index <.FTSTI> gained 0.39 percent and Thai shares <.SETI> rose 0.65 percent as banks recouped recent falls, with Singapore's top lender DBS
Malaysian shares <.KLSE> eased 0.5 percent, Indonesian shares <.JKSE> shed 0.5 percent, the Philippine index <.PSI> lost 0.4 percent and Vietnam <.VNI> fell for a second day, down 3 percent to a near 2-month low.
DJI Daily: Struggling
Market is struggling around 8000 mark. We maintain the resistance and support at 8300-8400 and 7449 level respectively.
KLSE Daily: remains same posture
Market remains its same posture to move in sideways. We maintain the upside resistance at 888-889 (gap left over on 20/1/2009). Downside support is at 868-867.
FKLI Daily: in Consolidation phase
Market tested the support at 865-860 in intra-day basis but not closing. Market looks may continue its consolidation phase in near term. As for now, we look for the upside resistance at 880-890 Downside support is pegged at 845-840.
FCPO Daily: Range bound mode
Market likely to trade in range bound mode following 1700 mark defended well. We look for the downside support at 1720 followed 1706-1695 (gap left over on 2/1/2009). While, upside resistance is at 1815-1825 (gap left over on 28/1/2009) followed by 1870-1880.
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