Wednesday, February 11, 2009
Trader's Comment: CPO futures ended lower on profit taking.
CPO futures ended lower on profit taking. Benchmark Apr09 opened RM29 lower at 1940 following the overnight losses of CBOT soy oil and NYMEX crude oil. It later climbed to intra day high at 1967 before lunch time but then fell again to the intra day low of 1916 when second session resumed, tracking the sudden fall of Dalian palm as it hit limit down prices. Buy on rumors sell on facts on MPOB Jan09 supply and demand data which released during lunch break also provided some selling pressure. However, bargain hunting and short covering had cushion the slide. Benchmark Apr09 bounced back from the low and continue to trade in that range before it finally settled RM44 lower at 1925. Meanwhile, a Hamburg-based analyst from Oil World had stated that global palm oil prices could improve in the coming weeks as end stock level were showing signs of declining.
Breaking News-RTRS-UPDATE 1-Argentina gets some rain but drought continues
BUENOS AIRES, Feb 10 (Reuters) - Key Argentine soy-growing areas received rain on Tuesday, but the country was still suffering from its worst drought in decades, forecasters said.
Breaking News-RTRS-Palm oil prices may rise on low stocks-Oil World
HAMBURG, Feb 10 (Reuters) - Global palm oil prices may rise in coming weeks because of increasing indications of low stocks in key producer Malaysia, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
Palm oil prices have shown price strength independent of rival soyoil, sunflower oil and rapeseed oil in past weeks, Oil World said.
Support partly stems from talk about a more pronounced than usual slowdown in Malaysian palm oil production partly caused by recent flooding, it said.
"But a bearish factor for palm oil prices is seen in the probable slowdown of import demand from India in the next two weeks, where burdensome stocks were accumulated until end December."
Palm oil prices have shown price strength independent of rival soyoil, sunflower oil and rapeseed oil in past weeks, Oil World said.
Support partly stems from talk about a more pronounced than usual slowdown in Malaysian palm oil production partly caused by recent flooding, it said.
"But a bearish factor for palm oil prices is seen in the probable slowdown of import demand from India in the next two weeks, where burdensome stocks were accumulated until end December."
Trader's Highlight
DJI - NEW YORK, Feb 10 - U.S. stocks tumbled more than 4 percent on Tuesday as investors pummeled bank shares on concerns a reworked plan to shore up the financial sector may not be enough to thaw credit markets and alleviate the
deepening recession.
The Dow industrials posted their biggest one-day loss since Dec. 1. Losses accelerated after the Treasury Department rolled out an intensely awaited financial rescue plan, saying it would spend up to $2 trillion to mop up bad bank assets and revive consumer lending.
The Dow Jones industrial average was down 381.99 points, or 4.62 percent, at 7,888.88. The Standard & Poor's 500 Index was down 42.73 points, or 4.91 percent, at 827.16. The Nasdaq Composite Index was down 66.83 points, or 4.20 percent, at 1,524.73.
NYMEX - NEW YORK, Feb 10 - U.S. crude oil futures pared losses in post-settlement trading on Tuesday after the industry group American Petroleum Institute's weekly inventory data showed crude stockpiles fell instead of rose as forecast by
analysts.
Earlier, crude futures ended more than 5 percent lower after the government revised lower its global and U.S. 2009 oil demand estimates and as Wall Street tumbled on doubts about a bank rescue plan's prospects for success.
On the New York Mercantile Exchange, at 5:15 p.m. EST (2205 GMT), March crude was down $1.43, or 3.61 percent, at $38.13 a barrel. It earlier setttled at $37.55, down $2.01, or 5.08 percent, after trading from $37.35, the lowest since prices hit $32.70 on Jan. 20, to $41.80. In floor trading session, a late sell-off breached the contract's lifetime low of $38.
CBOT - SOYBEANS - March down 8 cents to $9.94 a bushel.
Slipped on profit-taking after recent rally on worries about a smaller South American soybean output due to dryness. USDA confirmed those expectations in Tuesday report, cutting its forecast for the Argentine and Brazilian soybean crops.
CBOT - SOYOIL - March down 0.59 cent per lb to 33.64 cents.
Pressed by weakness in soybeans and crude oil. USDA also raised its 2008/09 U.S. soyoil end stocks forecast by 100 million pounds.
FCPO - KUALA LUMPUR, Feb 10 - Malaysian crude palm futures jumped 4.7 percent on Tuesday to hit a one-month high as investors bet on more orders for the vegetable oil because of drought conditions in rival soyoil-producing Argentina.
Cargo surveyor Societe Generale de Surveillance reported slight declines to 372,782 tonnes for Feb. 1-10 palm exports, suggest that Asian buyers may be slowly shifting focus to palm oil rather than soyoil.
The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled up 89 ringgit to 1,969 ringgit ($549.4), a level not seen since Jan. 12.
REGIONAL EQUITIES - BANGKOK, Feb 10 - Singapore shares climbed more than 1 percent on Tuesday after analysts welcomed news of a rights issue from CapitaLand, while Malaysian shares hit a 4-week high as higher palm oil prices pushed up plantation stocks.
Singapore rose 1.3 percent, recouping part of its 1.9 percent loss on Monday, with developer CapitaLand surging 11.4 percent after analysts said a plan to raise over $1.2 billion in a rights issue gave it flexibility for acquisitions.
In Kuala Lumpur, the main index rose 0.8 percent to its highest since Jan. 15, with planter IOI Corp adding 2.6 percent in line with Malaysian crude palm futures, which climbed to a one-month high.
deepening recession.
The Dow industrials posted their biggest one-day loss since Dec. 1. Losses accelerated after the Treasury Department rolled out an intensely awaited financial rescue plan, saying it would spend up to $2 trillion to mop up bad bank assets and revive consumer lending.
The Dow Jones industrial average was down 381.99 points, or 4.62 percent, at 7,888.88. The Standard & Poor's 500 Index was down 42.73 points, or 4.91 percent, at 827.16. The Nasdaq Composite Index was down 66.83 points, or 4.20 percent, at 1,524.73.
NYMEX - NEW YORK, Feb 10 - U.S. crude oil futures pared losses in post-settlement trading on Tuesday after the industry group American Petroleum Institute's weekly inventory data showed crude stockpiles fell instead of rose as forecast by
analysts.
Earlier, crude futures ended more than 5 percent lower after the government revised lower its global and U.S. 2009 oil demand estimates and as Wall Street tumbled on doubts about a bank rescue plan's prospects for success.
On the New York Mercantile Exchange, at 5:15 p.m. EST (2205 GMT), March crude was down $1.43, or 3.61 percent, at $38.13 a barrel. It earlier setttled at $37.55, down $2.01, or 5.08 percent, after trading from $37.35, the lowest since prices hit $32.70 on Jan. 20, to $41.80. In floor trading session, a late sell-off breached the contract's lifetime low of $38.
CBOT - SOYBEANS - March down 8 cents to $9.94 a bushel.
Slipped on profit-taking after recent rally on worries about a smaller South American soybean output due to dryness. USDA confirmed those expectations in Tuesday report, cutting its forecast for the Argentine and Brazilian soybean crops.
CBOT - SOYOIL - March down 0.59 cent per lb to 33.64 cents.
Pressed by weakness in soybeans and crude oil. USDA also raised its 2008/09 U.S. soyoil end stocks forecast by 100 million pounds.
FCPO - KUALA LUMPUR, Feb 10 - Malaysian crude palm futures jumped 4.7 percent on Tuesday to hit a one-month high as investors bet on more orders for the vegetable oil because of drought conditions in rival soyoil-producing Argentina.
Cargo surveyor Societe Generale de Surveillance reported slight declines to 372,782 tonnes for Feb. 1-10 palm exports, suggest that Asian buyers may be slowly shifting focus to palm oil rather than soyoil.
The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled up 89 ringgit to 1,969 ringgit ($549.4), a level not seen since Jan. 12.
REGIONAL EQUITIES - BANGKOK, Feb 10 - Singapore shares climbed more than 1 percent on Tuesday after analysts welcomed news of a rights issue from CapitaLand, while Malaysian shares hit a 4-week high as higher palm oil prices pushed up plantation stocks.
Singapore rose 1.3 percent, recouping part of its 1.9 percent loss on Monday, with developer CapitaLand surging 11.4 percent after analysts said a plan to raise over $1.2 billion in a rights issue gave it flexibility for acquisitions.
In Kuala Lumpur, the main index rose 0.8 percent to its highest since Jan. 15, with planter IOI Corp adding 2.6 percent in line with Malaysian crude palm futures, which climbed to a one-month high.
DJI Daily: looks ugly!
Market looks ugly with a long black candle printed. We maintain the resistance and support at 8300-8400 and 7449 level respectively.
KLSE Daily: 3rd day rallied
Market had its 3rd day rallied to stay above 900 mark. We are now looking for upside resistance at 907-910 (gap left over since 15/1/2009). Downside support is at 884-880 (gap left over on 6/2/2009) followed by 868-860.
FKLI Daily: eyeing upside gap at 902.5-907
Prices close at day high at 900 mark has helped to draw a positive technical landscape. Market momentum remains firm and steady. Looks market may want to challenge the upside gap left over at 902.5-907. Support is now pegged at 880-878 (gap left over on 6/2/2009) followed by 865-860.
FCPO Daily: Firm
Market extended its rally and stayed firm above 1900 mark. Market looks may want to challenge the upside resistance at 1981-1998 followed by 2058. Downside support is pegged at 1907-1908 (gap left over on 10/2/2009).
Trader's Comment: Palm oil futures rallied strongly on late covering.
Palm oil futures rallied strongly on late covering. Benchmark Apr09 initially opened RM40 higher at 1920, tracking the eCBOT soy oil edging higher in the early trade, extending its overnight strong gains on worries of the drought condition in Argentina. It fell to intra day low of 1907 after fully covered yesterday’s left over gap, but later bounced back again when strong buying support activities emerged and sent CPO prices to close at 1945 before lunch. Benchmark Apr09 then hovered between 1950-1930 level through out afternoon session before some aggressive buyers appeared in late trading and pushed CPO prices to settled RM89 higher at the intra day high of 1969. Market sentiment was bullish as traders were expecting some good numbers from MPOB’s supply & demand data which is scheduled to release tomorrow, even though both private cargo surveyors reported a slightly decline of export data for the period of 1-10 Jan.
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