Thursday, February 26, 2009

Trader's Comment: Palm oil futures surrendered all its earlier gains to end mix.

Palm oil futures surrendered all its earlier gains to end mix. The strong rally in overnight CBOT soy oil and NYMEX crude oil leads to Benchmark May09 opened RM36 higher at 1930. However, due to lack of follow through buying activities, CPO prices began to lose its momentum gradually through out the day. It managed to close at 1901 before lunch break. 1900 level was unable to sustain and it fell to intra day low of 1882 in the afternoon session. It then hovered between 1890-1900 level before it finally settled RM4 lower at 1890. Both eCBOT soy oil and Dalian palm had encountered profit-taking activities and ended with losses after their previous session’s gains. Overall, traders were not in the buying mood yet as they cautiously waiting for any fresh leads from the upcoming Price Outlook Conference which will be held next month.

Breaking News-RTRS-UPDATE 2-Chinese buyers renege on some US soybeans

SINGAPORE, Feb 25 (Reuters) - Chinese importers have cancelled at least 3 cargoes totalling 180,000 tonnes of U.S. soybeans as the world's biggest buyer turns to cheaper cargoes from South America and domestic soymeal prices decline. Traders said there could be more soy deals in trouble, including some cargoes already afloat after China made strong purchases of the oilseed in the last few months.

Trader's Highlight

DJI-NEW YORK, Feb 25 (Reuters) - U.S. stocks fell on Wednesday after U.S. President Barack Obama warned of stricter oversight for Wall Street, raising the specter of greater regulation that investors fear could sap profits.

Obama's comments near the market close rattled investors when he said financial institutions that pose a serious risk to markets should be subject to serious government supervision.

The Dow Jones industrial average <.DJI> was down 80.05 points, or 1.09 percent, at 7,270.89. The Standard & Poor's 500 Index <.SPX> was down 8.24 points, or 1.07 percent, at 764.90. The Nasdaq Composite Index <.IXIC> was down 16.40 points, or
1.14 percent, at 1,425.43.

NYMEX-
NEW YORK, Feb 25 (Reuters) - U.S. crude oil futures ended more than 6 percent higher on Wednesday, supported by a rally on gasoline futures after data showed gasoline inventories dropped much more than expected last week.

On the New York Mercantile Exchange, April crude settled up $2.54, or 6.36 percent, at $42.50 a barrel, trading from $39.40 to $42.80. It was the highest settlement since Feb. 6, when front-month crude ended at $40.17.

CBOT-SOYBEANS - March down 3 cents at $8.78 per bushel. Firm dollar and news China canceling cargoes of U.S. soy, likely switching business to Brazil, weighed on prices.

CBOT-SOYOIL - March up 1.39 cents at 31.90 per lb. Gained on hopes for increased usage of soyoil in potential growth of U.S. biodiesel industry and gains in crude oil.

FCPO-JAKARTA, Feb 25 (Reuters) - Malaysian palm futures rose 1.2 percent on Wednesday to finish at a one-week high on the back of good export data and helped by a rally in global stock markets, but the upside was capped by profit-taking, traders said.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange rose 23 ringgit, or 1.2 percent, to 1,894 ringgit ($516) per tonne, after rising as high as 1,912 ringgit early.

Other traded contracts rose between 20 and 27 ringgit. Overall volume was 11,509 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Feb 25 (Reuters) - Southeast Asian stocks posted small gains on Wednesday, with an interest rate cut pushing big-cap energy and telecom shares up in Thailand, and a cut in Malaysia pushing stocks there to the highest in nearly a week.

Malaysia <.KLSE> gained 0.3 percent, with Telekom Malaysia up 6.6 percent. The stock had surged 12.6 percent in early trade after the company said it would return 3.5 billion ringgit ($955 million) to stockholders.

Asian stocks elsewhere edged up as reassuring comments from Federal Reserve Chairman Ben Bernanke sparked a rebound in financial shares. In Singapore, the main stock index <.FTSTI> ended up 0.15 percent. Indonesian shares <.JKSE> were up 0.33 percent, the Philippine index <.PSI> added nearly 1 percent and Vietnamese shares <.VNI> surged 3.8 percent.

DJI Daily: remains weak


Market atmosphere remained bearish. As for now, look for the immediate downside support at 7100-7000. For upside, resistance maintain at 7400-7500.

KLSE Daily: struggling


We maintain the upside resistance at 900-910. Downside support is at 884-880 (gap left over on 6/2/2009).

FKLI Daily: 900 mark can comes?


Market remained steady and looks may want to challenge 900 mark in near term.We maintain the upside resistance at 895-900 and downside support is pegged at 875-870.

FCPO Daily: may continue to challenge 1900 mark


Market momentum has improved despite close below 1900 mark after tested 1900-1910 in intra-day basis. Market looks may continue to challenge 1900 mark in near term. Thus, we are now looking for the resistance at 1935-1950 followed by 1970-2000. Immediate support is pegged at 1881-1878(gap left over on 25/2/2009).