Friday, March 6, 2009
Trader's Comment: Palm oil futures rallied strongly on pre-weekend covering.
Palm oil futures rallied strongly on pre-weekend covering. Benchmark May09 had been well supported in the early trade and hovered between 1905-1895 level through out the morning session after it opened almost unchanged at 1902. As Monday market will be closed for Muslim religious holiday, short covering activities began to emerge ahead of long weekend saw CPO prices started to gain momentum in the afternoon session. Benchmark May09 rallied strongly to the high of 1955 before it finally settled RM34 higher at 1940. While traders were waiting for some fresh news from the upcoming Price Outlook Conference on next week, the release of statements made by Thomas Mielke had also helped to boost the buying sentiment in CPO market. Mr. Mielke had said that Asian palm output growth will be slowed and German power producer were seen buying more palm oil for electricity generation.
RTRS:Asian palm output growth slows as yields taper off
KUALA LUMPUR, March 6 (Reuters) - Indonesia and Malaysia, the world's top palm producers, will see only a small rise in output this year due to tree stress after months of good harvests and less fertiliser usage, a top industry analyst said on Thursday.
Indonesian output of the tropical oil was expected to rise 7.9 percent to 20.6 million tonnes while Malaysian production was seen rising slightly to 17.9-18 million tonnes, said Thomas Mielke, head of German oilseeds research group Oil World.
The Malaysian forecast is higher than the 17.6 million tonnes Mielke forecast in November, and up from the 17.7 million tonnes produced in 2008.
Indonesian output of the tropical oil was expected to rise 7.9 percent to 20.6 million tonnes while Malaysian production was seen rising slightly to 17.9-18 million tonnes, said Thomas Mielke, head of German oilseeds research group Oil World.
The Malaysian forecast is higher than the 17.6 million tonnes Mielke forecast in November, and up from the 17.7 million tonnes produced in 2008.
Trader's Highlight
DJI - NEW YORK, March 5 - U.S. stocks slid on Thursday with the Dow and S&P falling to 12-year lows as General Motors' warning of possible bankruptcy and concerns about the
banking system's fate reinforced investors' reluctance to take on risk.
The previous session's rally proved fleeting as worries about the financial system's health hit bank stocks again and investors focused on the possibility that troubles in the finance arm of widely held General Electric could lead to a debt rating downgrade for the entire company.
The Dow Jones industrial average fell 281.40 points, or 4.09 percent, to 6,594.44. The Standard & Poor's 500 Index lost 30.32 points, or 4.25 percent, to 682.55. The Nasdaq Composite Index dropped 54.15 points, or 4.00 percent, to 1,299.59.
NYMEX - NEW YORK, March 5 - U.S. crude futures ended almost 4 percent lower on Thursday as Wall Street losses mounted, raising fresh concerns about oil demand in a slowing economy a day after a nearly 9 percent rally.
On the New York Mercantile Exchange, April crude settled down $1.77, or 3.9 percent, at $43.61 a barrel, trading from $42.86, breaking support at $43.50, to a high of $45.70.
CBOT - SOYBEANS - March down 13 cents at $8.62-1/2 a bushel. Firm dollar, lower crude oil and drop in U.S. stock market lending pressure in addition to a low soy number in USDA's weekly export sales report. Market on edge amid ongoing conflict between Argentine government and farmers.
CBOT - SOYOIL - March down 0.30 cent at 30.44 cents a pound. Lower crude oil and drop in U.S. stocks leading to weakness in soyoil futures.
FCPO - KUALA LUMPUR, March 5 - Malaysian crude palm oil futures traded slightly higher on Thursday as investors waited for more leads, beyond taking positions on strong crude oil and the higher U.S. soybean complex.
The benchmark May contract on the Bursa Malaysia Derivatives Exchange settled up 4 ringgit at 1,906 ringgit ($511.5) per tonne.
REGIONAL EQUITIES - BANGKOK, March 5 - Singapore stocks fell 1.7 percent on Thursday, weighed down by losses in index heavyweight DBS Group and other bank shares, and other Southeast Asian markets ended off their highs after early optimism faded.
Singapore's benchmark index turned lower after a 1 percent rise on Wednesday, with the region's biggest bank, DBS , extending its fall for a fifth day, down 2.1 percent, and Oversea-Chinese Banking Corp dropping 3 percent.
Elsewhere, Malaysia's index gained 0.27 percent, the Thai index inched down 0.18 percent and Indonesia's drifted 0.1 percent lower.
banking system's fate reinforced investors' reluctance to take on risk.
The previous session's rally proved fleeting as worries about the financial system's health hit bank stocks again and investors focused on the possibility that troubles in the finance arm of widely held General Electric could lead to a debt rating downgrade for the entire company.
The Dow Jones industrial average fell 281.40 points, or 4.09 percent, to 6,594.44. The Standard & Poor's 500 Index lost 30.32 points, or 4.25 percent, to 682.55. The Nasdaq Composite Index dropped 54.15 points, or 4.00 percent, to 1,299.59.
NYMEX - NEW YORK, March 5 - U.S. crude futures ended almost 4 percent lower on Thursday as Wall Street losses mounted, raising fresh concerns about oil demand in a slowing economy a day after a nearly 9 percent rally.
On the New York Mercantile Exchange, April crude settled down $1.77, or 3.9 percent, at $43.61 a barrel, trading from $42.86, breaking support at $43.50, to a high of $45.70.
CBOT - SOYBEANS - March down 13 cents at $8.62-1/2 a bushel. Firm dollar, lower crude oil and drop in U.S. stock market lending pressure in addition to a low soy number in USDA's weekly export sales report. Market on edge amid ongoing conflict between Argentine government and farmers.
CBOT - SOYOIL - March down 0.30 cent at 30.44 cents a pound. Lower crude oil and drop in U.S. stocks leading to weakness in soyoil futures.
FCPO - KUALA LUMPUR, March 5 - Malaysian crude palm oil futures traded slightly higher on Thursday as investors waited for more leads, beyond taking positions on strong crude oil and the higher U.S. soybean complex.
The benchmark May contract on the Bursa Malaysia Derivatives Exchange settled up 4 ringgit at 1,906 ringgit ($511.5) per tonne.
REGIONAL EQUITIES - BANGKOK, March 5 - Singapore stocks fell 1.7 percent on Thursday, weighed down by losses in index heavyweight DBS Group and other bank shares, and other Southeast Asian markets ended off their highs after early optimism faded.
Singapore's benchmark index turned lower after a 1 percent rise on Wednesday, with the region's biggest bank, DBS , extending its fall for a fifth day, down 2.1 percent, and Oversea-Chinese Banking Corp dropping 3 percent.
Elsewhere, Malaysia's index gained 0.27 percent, the Thai index inched down 0.18 percent and Indonesia's drifted 0.1 percent lower.
Trader's Comment: Market ended in a positive territory after trading in a mix tone.
Market ended in a positive territory after trading in a mix tone. Benchmark May09 rallied to hit intra day high at 1923 in the early trading after opened almost unchanged at 1904, tracking the overnight positive closed of CBOT soy complex and the strong rally in NYMEX crude oil. However, CPO prices then eased off to intra day low of 1890 due to lack of follow through buying activities and thereafter hovering in that range for the rest of the day until it finally settled RM4 higher at 1906. Steady underlying physical prices had underpinned CPO market today. Generally, the overall market was still remained in the broad range between 1800-1950 level. Players were still cautiously awaiting for new direction ahead of the upcoming Price Outlook Conference which will be held in Kuala Lumpur next week (10-12 Mar).
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