Thursday, February 19, 2009
Trader's Comment: Unexpected of the late sell off dragged prices to close at negative territory.
Unexpected of the late sell off dragged prices to close at negative territory. Initially it opened lower tracking overnight losses in CBOT and NYMEX crude oil. Benchmark may09 slid to hit intra day low at 1830 and looks well supported as again bargain hunting buying and covering interest were seen. Later it hovered between 1840-1860 before the late short covering activities emerged on export talk. Talks that 1-20 Feb export numbers likely to be about the same compare to last month same period prompting aggressive short covering and sent May09 price rebounded to hit intra day high at 1894. However, a late sell down at the close dragged prices back to the negative territory to close at 1860, down RM 15. FCPO price looks quite resilience despite the recent sharp falls in soy oil prices in CBOT. Total daily volume remained heavy with 22,439 contracts changed hands.
Breaking News-RTRS-Malaysian palm oil stocks to stay low - Oil World
HAMBURG, Feb 17 (Reuters) - Palm oil stocks in key exporter Malaysia are likely to remain below last year's levels for most of 2009, oilseeds analysts Oil World forecast on Tuesday.
But the higher palm oil prices generated by lower stocks could mean buyers seek alternative edible oils, it added.
"We expect Malaysian palm oil stocks to remain below last year's level at least until September, but probably until December 2009," it said. "Malaysian production is likely to be curbed in calendar year 2009 by reduced yields."
Palm oil prices have risen relative to other vegetable oils recently because of strong export demand partly due to the sharp decline in export supplies of soyoil, it said.
"As a result, Malaysian palm oil stocks showed an unprecedented decline of 0.43 million tonnes from Dec 1 until end Jan 2009 to 1.8 million tonnes," it said.
But the higher palm oil prices generated by lower stocks could mean buyers seek alternative edible oils, it added.
"We expect Malaysian palm oil stocks to remain below last year's level at least until September, but probably until December 2009," it said. "Malaysian production is likely to be curbed in calendar year 2009 by reduced yields."
Palm oil prices have risen relative to other vegetable oils recently because of strong export demand partly due to the sharp decline in export supplies of soyoil, it said.
"As a result, Malaysian palm oil stocks showed an unprecedented decline of 0.43 million tonnes from Dec 1 until end Jan 2009 to 1.8 million tonnes," it said.
Breaking News-RTRS-Argentina sees 2008/09 soy area 17 mln hectares
BUENOS AIRES, Feb 18 (Reuters) - Argentina estimates the area planted in the 2008/09 soy season at 17 million hectares versus 16.5 million a month ago, the government said in a report on Wednesday.
Trader's Highlight
DJI-NEW YORK, Feb 18 (Reuters) - The S&P 500 and Nasdaq closed marginally lower on Wednesday as President Barack Obama's $275 billion plan to prop up the housing market failed to stem worries about the economy, and bleak housing data highlighted the deepening recession.
Indexes see-sawed in a narrow range throughout the day, but the S&P and Nasdaq ultimately failed to hold gains despite bargain-hunting that sent investors to the perceived safety of defensive stocks, such as technology and consumer staples.
The Dow Jones industrial average <.DJI> added 3.03 points, or 0.04 percent, to 7,555.63. The Standard & Poor's 500 Index <.SPX> was off 0.75 points, or 0.10 percent, to 788.42. The Nasdaq Composite Index <.IXIC> edged down 2.69 points, or 0.18 percent, at 1,467.97.
NYMEX-NEW YORK, Feb 18 (Reuters) - U.S. crude oil futures were little changed in post-settlement trading on Wednesday after the industry group American Petroleum Institute reported a lower-than-expected build in crude stocks last week.
On the New York Mercantile Exchange at 4:50 p.m. (2150 GMT), March crude was down 34 cents, or 0.97 percent, at $34.59 a barrel. It had settled down 31 cents, or 0.89 percent, at $34.62, after trading from $34.16 to $36.22. The March crude
CBOT-SOYBEANS - March down 15-1/2 at $8.87-1/2 per bushel. Late fund selling amid concerns about waning demand amid global economic recession weighs on market as did improved crop weather in Argentina. March fell to near two-month low.
CBOT-SOYOIL - March down 0.73 cent at 30.42 cents per lb. Market turns lower as soybeans decline.
FCPO-JAKARTA, Feb 18 (Reuters) - Malaysian palm futures recovered nearly two-thirds of the day's loss after tumbling to nine-day lows on short-covering, but still finished in the red for a third straight day on Wednesday, traders said.
The benchmark May contract fell 20 ringgit, or 1.1 percent, to 1,875 ringgit ($513) per tonne, having gone down as low as 1,842 ringgit, the level unseen since February 6.
Other traded contracts fell between 16 and 34 ringgit <0#KPO:>. Overall volume was 13,076 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Feb 18 (Reuters) - Southeast Asian stocks were mixed
on Wednesday, with Singapore recouping early losses to end almost 1 percent higher on gains in SingTel and other big caps while Malaysia hit its lowest in almost two weeks, pulled down by plantation stocks.
Singapore's benchmark index <.FTSTI> gained 0.8 percent, with Singapore Telecommunications, Southeast Asia's largest phone firm, up 1.2 percent, while Malaysia's index <.KLSE> fell 0.4 percent, with planter IOI Corp off 3.1 percent.
Indexes see-sawed in a narrow range throughout the day, but the S&P and Nasdaq ultimately failed to hold gains despite bargain-hunting that sent investors to the perceived safety of defensive stocks, such as technology and consumer staples.
The Dow Jones industrial average <.DJI> added 3.03 points, or 0.04 percent, to 7,555.63. The Standard & Poor's 500 Index <.SPX> was off 0.75 points, or 0.10 percent, to 788.42. The Nasdaq Composite Index <.IXIC> edged down 2.69 points, or 0.18 percent, at 1,467.97.
NYMEX-NEW YORK, Feb 18 (Reuters) - U.S. crude oil futures were little changed in post-settlement trading on Wednesday after the industry group American Petroleum Institute reported a lower-than-expected build in crude stocks last week.
On the New York Mercantile Exchange at 4:50 p.m. (2150 GMT), March crude
CBOT-SOYBEANS - March
CBOT-SOYOIL - March
FCPO-JAKARTA, Feb 18 (Reuters) - Malaysian palm futures recovered nearly two-thirds of the day's loss after tumbling to nine-day lows on short-covering, but still finished in the red for a third straight day on Wednesday, traders said.
The benchmark May contract
Other traded contracts fell between 16 and 34 ringgit <0#KPO:>. Overall volume was 13,076 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, Feb 18 (Reuters) - Southeast Asian stocks were mixed
on Wednesday, with Singapore recouping early losses to end almost 1 percent higher on gains in SingTel and other big caps while Malaysia hit its lowest in almost two weeks, pulled down by plantation stocks.
Singapore's benchmark index <.FTSTI> gained 0.8 percent, with Singapore Telecommunications
DJI Daily: maintain downside momentum
Market looks weak and ugly as prices seem losing ground towards the downside. We maintain the immediate support at 7449 followed by 7197 (low since 31/12/2002). For upside, resistance is at 8000-8300.
FKLI Daily: 880 mark defended well
Market is losing ground yet 880 level looks defended well. We are now looking for the support at 880-878 (gap left over on 6/2/2009) followed by 860-865. While, resistance is at 900-905.
FCPO Daily: Correction phase may continue
Market looks toppish following the formation of double top. Correction phase may extend in near term. We now looking for the resistance at 1892-1887 (gap left over on 18/2/2009). Support is pegged at 1800-1790 followed by 1740-1720.
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