Friday, March 13, 2009
Trade's Comment: Palm oil futures recovered from yesterday’s losses to end broadly higher
Palm oil futures recovered from yesterday’s losses to end broadly higher following strong overnight CBOT soy oil and NYMEX crude oil. Generally market was in recovery mode as players believed that there are some nearby tightness in underlying cash market. Speculative buying were also taking advantage of Jun09 contract which soon to become 3rd month contract on Monday which is trading on a good discount to current 3rd month May09 contract. Benchmark May09 climbed from intra day low of 1931 to 1983 in late afternoon session before it finally settled RM52 higher at 1972. 4th contract month Jun09 settled RM50 higher at 1930 after trading between 1895 to 1947.
Trader's Highlight
DJI - NEW YORK, March 12 - U.S. stocks rose for a third day on Thursday on relief that a ratings cut by S&P in General Electric was just one notch and that no further cuts
loomed, while retail sales data showed some stabilization in consumer spending.
The Dow Jones industrial average climbed 239.66 points, or 3.46 percent, to 7,170.06. The Standard & Poor's 500 Index jumped 29.38 points, or 4.07 percent, to 750.74. The Nasdaq Composite Index added 54.46 points, or 3.97 percent, to 1,426.10.
NYMEX - NEW YORK, March 12 - U.S. crude futures ended more than 11 percent higher on Thursday, rebounding from heavy losses in the previous session, as traders weighed a potential output cut when OPEC meets on Sunday.
On the New York Mercantile Exchange, April crude settled up $4.70, or 11.1 percent, at $47.03 a barrel, trading from $42.51 to $47.22. It was the biggest one-day percentage gain since Feb. 19, when prices rose 14.04 percent. Prices fell 7.39 percent to $42.33 on Wednesday.
CBOT - SOYBEANS - March up 24 cents at $8.99 a bushel, May up 20 at $8.82. Short-covering rebound spurred by crude rally, strength in Dow and bigger-than-expected weekly export figure issued by USDA.
CBOT - SOYOIL - March up 0.47 cent at 30.11 cents a lb; May up 0.47 at 30.38. Short covering after fund selling drove prices sharply lower on Wednesday. USDA big U.S. soyoil end stocks estimate issued Wednesday ignited the selling.
FCPO - JAKARTA, March 12 - Malaysian crude palm oil futures fell 3.0 percent to the lowest in nearly a week on Thursday after top industry analysts warned the price could slide to 1,500 ringgit, traders said.
The benchmark May contract on the Bursa Malaysia Derivatives Exchange fell 60 ringgit, or 3.0 percent, to 1,920 ringgit ($521) per tonne, the lowest since March 6.
REGIONAL EQUITIES - BANGKOK, March 12 - Most Southeast Asian stock markets ended lower on Thursday, with Singapore and Indonesia falling back after two days of gains and Malaysia touching a three-month low, with financials leading the way down.
Singapore's index fell 0.8 percent, with lender United Overseas Bank losing 2.4 pecent, and Indonesia's index lost 0.3 percent, with state-controlled Bank Rakyat
sliding 3.7 percent.
Malaysia's benchmark index dropped 1.4 percent, touching its lowest since Dec. 10 at one point, with Maybank tumbling 6.5 percent and Public Bank 3.4 percent lower.
loomed, while retail sales data showed some stabilization in consumer spending.
The Dow Jones industrial average climbed 239.66 points, or 3.46 percent, to 7,170.06. The Standard & Poor's 500 Index jumped 29.38 points, or 4.07 percent, to 750.74. The Nasdaq Composite Index added 54.46 points, or 3.97 percent, to 1,426.10.
NYMEX - NEW YORK, March 12 - U.S. crude futures ended more than 11 percent higher on Thursday, rebounding from heavy losses in the previous session, as traders weighed a potential output cut when OPEC meets on Sunday.
On the New York Mercantile Exchange, April crude settled up $4.70, or 11.1 percent, at $47.03 a barrel, trading from $42.51 to $47.22. It was the biggest one-day percentage gain since Feb. 19, when prices rose 14.04 percent. Prices fell 7.39 percent to $42.33 on Wednesday.
CBOT - SOYBEANS - March up 24 cents at $8.99 a bushel, May up 20 at $8.82. Short-covering rebound spurred by crude rally, strength in Dow and bigger-than-expected weekly export figure issued by USDA.
CBOT - SOYOIL - March up 0.47 cent at 30.11 cents a lb; May up 0.47 at 30.38. Short covering after fund selling drove prices sharply lower on Wednesday. USDA big U.S. soyoil end stocks estimate issued Wednesday ignited the selling.
FCPO - JAKARTA, March 12 - Malaysian crude palm oil futures fell 3.0 percent to the lowest in nearly a week on Thursday after top industry analysts warned the price could slide to 1,500 ringgit, traders said.
The benchmark May contract on the Bursa Malaysia Derivatives Exchange fell 60 ringgit, or 3.0 percent, to 1,920 ringgit ($521) per tonne, the lowest since March 6.
REGIONAL EQUITIES - BANGKOK, March 12 - Most Southeast Asian stock markets ended lower on Thursday, with Singapore and Indonesia falling back after two days of gains and Malaysia touching a three-month low, with financials leading the way down.
Singapore's index fell 0.8 percent, with lender United Overseas Bank losing 2.4 pecent, and Indonesia's index lost 0.3 percent, with state-controlled Bank Rakyat
Malaysia's benchmark index dropped 1.4 percent, touching its lowest since Dec. 10 at one point, with Maybank tumbling 6.5 percent and Public Bank 3.4 percent lower.
Trader's Comment: Palm oil futures fell generally lower amid gloomy price outlook by top industry analysts.
Palm oil futures fell generally lower amid gloomy price outlook by top industry analysts. Benchmark May09 opened RM25 lower at 1955 following heavy losses in overnight CBOT soy oil and NYMEX crude oil. Initially it was well supported when prices bounced to intra day high of 1973 and close at 1960 before lunch break. However, the release of some pessimistic statement from the top 2 industry analysts during their presentation in today’s Price Outlook Conference saw CPO prices started to decline in the afternoon session. Both James Fry and Dorab Mistry had foreseen the possibility of CPO prices to test 1500 level in the second half of 2009. Benchmark May09 slides to intra day low of 1909 before it finally settled RM60 lower at 1920. External factors were mix as eCBOT soy oil inched higher while Dalian palm ended lower during Asian time trading.
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