Thursday, February 5, 2009
Trader's Comment: Palm oil extended its gains for the 3rd consecutive days.
Palm oil extended its gains for the 3rd consecutive days. Benchmark Apr09 opened RM8 lower at 1837 and hit intra day low at 1812, following overnight NYMEX crude oil ended slightly lower. Nevertheless, it was well supported and bounced back thereafter to begin its rally through out the day. eCBOT soy oil continued its overnight gains and edged higher during Asian time trading. This had helped lifted the market sentiment in our local CPO prices. Benchmark Apr09 rallied to the intra day high of 1880 in the second session before it settled RM34 higher at 1879. While MPOB will release its January supply and demand data on next Wednesday, Reuters poll had reported that January palm oil stocks might decline by 6%.
Breaking News-RTRS-POLL-Malaysia's Jan palm stocks seen at 5-month low
RTRS-MALAYSIA'S END-JAN PALM OIL STOCKS SEEN DOWN 6.1 PCT FROM DEC AT 1.87 MLN TONNES -REUTERS POLL
RTRS-MALAYSIA'S JAN PALM OIL OUTPUT SEEN DOWN 8.3 PCT FROM DEC - POLL
RTRS-MALAYSIA'S JAN PALM OIL EXPORTS SEEN DOWN 21.2 PCT FROM DEC - POLL
RTRS-MALAYSIA'S JAN PALM OIL OUTPUT SEEN DOWN 8.3 PCT FROM DEC - POLL
RTRS-MALAYSIA'S JAN PALM OIL EXPORTS SEEN DOWN 21.2 PCT FROM DEC - POLL
Breaking News-(BN) Vegetable Oil Demand to Rise This Year on Price Drop, HGCA Says
By Rudy Ruitenberg
Feb. 4 (Bloomberg) -- Global demand for vegetable oils will rise this season as increased production curbs prices, the U.K.’s Home-Grown Cereals Authority said.
Palm-oil stocks are expected to increase 500,000 metric tons at the end of the crop year, while stocks of rapeseed and sunflower oil are likely to be “large” following record harvests, the organization said in a report on its Web site.
Lower prices are boosting consumption, while “very low”
palm oil prices and high stock levels are likely to buoy biodiesel production in Asia, the HGCA said. Population growth will also lift demand, the group said.
“Cheaper prices, better supply seem to outweigh the recession when it comes to demand,” HGCA said. “The very large palm oil stocks are one of the main reasons why vegetable oil prices have fallen so sharply.”
The outlook for soy-oil stocks is less clear after Argentina, the world’s largest exporter of the vegetable oil, suffered the worst drought in 60 years, the organization said.
Concern about supplies has supported soy-oil prices, HGCA said.
Rapeseed oil continues to trade at a premium to palm oil because of demand from the European Union biodiesel industry, even as the world rapeseed crop was “much larger this season,”
the organization said.
Feb. 4 (Bloomberg) -- Global demand for vegetable oils will rise this season as increased production curbs prices, the U.K.’s Home-Grown Cereals Authority said.
Palm-oil stocks are expected to increase 500,000 metric tons at the end of the crop year, while stocks of rapeseed and sunflower oil are likely to be “large” following record harvests, the organization said in a report on its Web site.
Lower prices are boosting consumption, while “very low”
palm oil prices and high stock levels are likely to buoy biodiesel production in Asia, the HGCA said. Population growth will also lift demand, the group said.
“Cheaper prices, better supply seem to outweigh the recession when it comes to demand,” HGCA said. “The very large palm oil stocks are one of the main reasons why vegetable oil prices have fallen so sharply.”
The outlook for soy-oil stocks is less clear after Argentina, the world’s largest exporter of the vegetable oil, suffered the worst drought in 60 years, the organization said.
Concern about supplies has supported soy-oil prices, HGCA said.
Rapeseed oil continues to trade at a premium to palm oil because of demand from the European Union biodiesel industry, even as the world rapeseed crop was “much larger this season,”
the organization said.
Breaking News-(BN) IOI Properties Gets Cash-Stock Takeover Offer From Parent IOI
By Luzi Ann Javier
Feb. 4 (Bloomberg) -- IOI Corp., Malaysia’s second-biggest publicly traded planter, offered to buy all of the 199.7 million shares it didn’t already own in IOI Properties Bhd. for about
519 million ringgit ($143 million.)
IOI Corp., which owns about 74 percent of the developer’s total shares, will offer 2.598 ringgit per share for the remaining stock, comprising 0.6 IOI share and 33 sen in cash, according to a statement today from IOI Properties.
Feb. 4 (Bloomberg) -- IOI Corp., Malaysia’s second-biggest publicly traded planter, offered to buy all of the 199.7 million shares it didn’t already own in IOI Properties Bhd. for about
519 million ringgit ($143 million.)
IOI Corp., which owns about 74 percent of the developer’s total shares, will offer 2.598 ringgit per share for the remaining stock, comprising 0.6 IOI share and 33 sen in cash, according to a statement today from IOI Properties.
Breaking News-(BN) KPMG Says 5,000 U.K. Companies May File for Bankruptcy in 2009
By Poppy Trowbridge
Feb. 5 (Bloomberg) -- As many as 5,000 U.K. companies may file for bankruptcy this year as the economy worsens, according to a report by accounting and insolvency firm KPMG.
The number of firms that enter administration or receivership may jump 55 percent from 3,225 in 2008, KPMG said in a statement.
Consumer goods companies will suffer more than other industries as buyer confidence remains “at a low ebb.” Retail insolvency appointments soared in January, rising fourfold compared with the same period in 2008.
Feb. 5 (Bloomberg) -- As many as 5,000 U.K. companies may file for bankruptcy this year as the economy worsens, according to a report by accounting and insolvency firm KPMG.
The number of firms that enter administration or receivership may jump 55 percent from 3,225 in 2008, KPMG said in a statement.
Consumer goods companies will suffer more than other industries as buyer confidence remains “at a low ebb.” Retail insolvency appointments soared in January, rising fourfold compared with the same period in 2008.
Trader's Highlight
DJI - NEW YORK, Feb 4 - U.S. stocks fell on Wednesday as a glum profit forecast from Kraft Foods signaled consumers are skimping even on the basics and investors worried that government efforts to rescue banks could wipe out their shareholders.
Even so, a report showing that the vast service sector shrank less than expected in January spurred technology gains, helping the Nasdaq finish near break-even.
But that was before Cisco Systems Inc , the network equipment maker that is a tech bellwether, forecast a slide of as much as 20 percent in its current quarter revenue, hitting other tech shares after the bell.
The Dow Jones industrial average fell 121.70 points, or 1.51 percent, to 7,956.66. The Standard & Poor's 500 Index shed 6.28 points, or 0.75 percent, to 832.23. The Nasdaq Composite Index dipped 1.25 points, or 0.08 percent, to 1,515.05.
NYMEX - NEW YORK, Feb 4 - U.S. crude oil futures fell back late on Wednesday as traders conceded that the large crude supply increase at the NYMEX delivery hub in Oklahoma, part of the big inventory build last week, was too bearish for the market to ignore.
But despite the retreat, which came as Wall Street pared earlier gains, crude futures still ended above $40, inching up from the day's lows.
On the New York Mercantile Exchange, March crude settled down 46 cents, or 0.46 percent, at $40.32 a barrel, trading from $39.74 to $41.92.
CBOT - SOYBEANS - March up 3-1/2 cents to $9.49-1/2 a bushel. Pares gains and deferred months fell as traders locked in profits following an early strong technical bounce and on forecasts for wetter weather in Argentina. Pullback in crude oil and equity markets also weighed on market.
CBOT - SOYOIL - March up 0.82 cent at 32.35 cents a pound. Supported by crude oil and gains in nearby soy.
FCPO - KUALA LUMPUR, Feb 4 - Malaysian crude palm futures ended up 3.2 percent on Wednesday but came off week highs.
Some investors bought on advancing crude and equity markets and expectations of a sharp decline in domestic inventories also pushed the market higher, traders said.
The benchmark April contract settled up 57 ringgit to 1,845 ringgit ($509.7), after going as high as 1,852 ringgit, a level unseen since Jan. 23.
REGIONAL EQUITIES - BANGKOK, Feb 4 - Southeast Asian stocks were mixed on Wednesday, with Singapore and Malaysia erasing early gains to end lower on selling of big caps such as Singapore Telecom and lender Bumiputra-Commerce.
Singapore's benchmark index shed 0.26 percent, with top telecom firm Singapore Telecommunications down 1.6 percent. Malaysian shares fell for a second day, down 0.33 percent, with Bumiputra-Commerce off 2.3 percent.
Thai shares rose 0.6 percent, while the Indonesian market advanced 1.2 percent and the Philippine index climbed 1.2 percent. Vietnam fell for a third day,
down 0.9 percent at a near 2-month low.
Even so, a report showing that the vast service sector shrank less than expected in January spurred technology gains, helping the Nasdaq finish near break-even.
But that was before Cisco Systems Inc , the network equipment maker that is a tech bellwether, forecast a slide of as much as 20 percent in its current quarter revenue, hitting other tech shares after the bell.
The Dow Jones industrial average fell 121.70 points, or 1.51 percent, to 7,956.66. The Standard & Poor's 500 Index shed 6.28 points, or 0.75 percent, to 832.23. The Nasdaq Composite Index dipped 1.25 points, or 0.08 percent, to 1,515.05.
NYMEX - NEW YORK, Feb 4 - U.S. crude oil futures fell back late on Wednesday as traders conceded that the large crude supply increase at the NYMEX delivery hub in Oklahoma, part of the big inventory build last week, was too bearish for the market to ignore.
But despite the retreat, which came as Wall Street pared earlier gains, crude futures still ended above $40, inching up from the day's lows.
On the New York Mercantile Exchange, March crude settled down 46 cents, or 0.46 percent, at $40.32 a barrel, trading from $39.74 to $41.92.
CBOT - SOYBEANS - March up 3-1/2 cents to $9.49-1/2 a bushel. Pares gains and deferred months fell as traders locked in profits following an early strong technical bounce and on forecasts for wetter weather in Argentina. Pullback in crude oil and equity markets also weighed on market.
CBOT - SOYOIL - March up 0.82 cent at 32.35 cents a pound. Supported by crude oil and gains in nearby soy.
FCPO - KUALA LUMPUR, Feb 4 - Malaysian crude palm futures ended up 3.2 percent on Wednesday but came off week highs.
Some investors bought on advancing crude and equity markets and expectations of a sharp decline in domestic inventories also pushed the market higher, traders said.
The benchmark April contract settled up 57 ringgit to 1,845 ringgit ($509.7), after going as high as 1,852 ringgit, a level unseen since Jan. 23.
REGIONAL EQUITIES - BANGKOK, Feb 4 - Southeast Asian stocks were mixed on Wednesday, with Singapore and Malaysia erasing early gains to end lower on selling of big caps such as Singapore Telecom and lender Bumiputra-Commerce.
Singapore's benchmark index shed 0.26 percent, with top telecom firm Singapore Telecommunications down 1.6 percent. Malaysian shares fell for a second day, down 0.33 percent, with Bumiputra-Commerce off 2.3 percent.
Thai shares rose 0.6 percent, while the Indonesian market advanced 1.2 percent and the Philippine index climbed 1.2 percent. Vietnam fell for a third day,
down 0.9 percent at a near 2-month low.
KLSE Daily: Nothing much change
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: Remains sideways
Market stayed firm with its sideways posture. Consolidation phase looks may continue in near term. As for now, we look for the upside resistance at 880-890 Downside support is pegged at 858 followed by 845-840.
FCPO Daily: Range trading likely to continue
Market fully covered the upside gap at 1815-1825 and stayed firm. Market looks to extend its range bound mode in near term. We look for the downside support at 1798-1790 (gap left over on 4/2/2009) followed by 1720. While, upside resistance is at 1870-1880 followed by 1913-1935 (gap left over on 13/1/2009).
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