Wednesday, March 18, 2009

Trader's Comment: CPO futures remained in ranging mode in negative territory.

CPO futures remained in ranging mode in negative territory. Overnight CBOT soy oil and NYMEX crude oil rallied strongly led Benchmark Jun09 to hit intra day high at 1948 after opened RM10 higher at 1932. However, due to lack of follow through buying, prices then gradually easing off through out the day. Intra day long liquidation in late afternoon session sent Benchmark Jun09 continue to slide further and settled at intra day low at 1905. Market was rather quiet today as players waiting for fresh leads from the export data which is scheduled to release this Friday. Generally, the overall market was still moving sideways within the broad range of 1800-2000.

Breaking News-RTRS-Mexico tariffs will avoid corn, beans, wheat, rice

MEXICO CITY, March 16 (Reuters) - Mexico will not include rice, corn, beans or wheat among imports from the United States facing increased tariffs in a dispute over trucking, a spokesman for the Mexican economy ministry told Reuters on Monday.
"It won't be any of these products because Mexicans are sensitive to them," the spokesman said.
Mexico's government will likely announce on Wednesday what 90 industrial and agriculture goods will face higher tariffs in reprisal for U.S. cancellation of a pilot cross-border trucking program, the spokesman said.

Breaking News-RTRS-EU biodiesel import duty helps Argentina-Oil World

HAMBURG, March 17 (Reuters) - The European Union's decision to impose heavy import duties on U.S. biodiesel will switch EU buying to Argentina, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
On March 12, the EU said it would impose punitive duties on imports of biodiesel from the United States while an investigation is held into allegations the U.S. green fuel is sold cheaply in Europe with the help of subsidies. [ID:nNLC572079]
"The EU will receive much less biodiesel from the U.S. following the introduction of countervailing duties, but more from Argentina," Oil World said.

Trader's Highlight

DJI-NEW YORK, March 17 (Reuters) - U.S. stocks surged on Tuesday as an unexpected leap in housing starts pushed Home Depot and other retailers higher while bullish comments from a broker on Cisco Systems helped technology shares rebound.

The Dow Jones industrial average <.DJI> gained 178.73 points, or 2.48 percent, to 7,395.70. The Standard & Poor's 500 Index <.SPX> rose 24.23 points, or 3.21 percent, to 778.12. The Nasdaq Composite Index <.IXIC> jumped 58.09 points, or 4.14 percent, to 1,462.11.

NYMEX-NEW YORK, March 17 (Reuters) - U.S. crude oil futures settled at their highest level since December, supported by a surge in heating oil and gasoline futures and on options expiration play for the front-month April crude contract.

On the New York Mercantile Exchange, April crude settled up $1.81, or 3.82 percent, at $49.16, a barrel, the highest settlement since Dec. 1, 2008's close at $49.28. It traded from $46.53 to $49.82, the highest intraday price since this year's high of $50.47 was reached on Jan. 6.

CBOT-SOYBEANS
- May up 1 cent per bushel at $9.12 per bushel. Tight soy stocks, firm cash and slow farmer selling boosting prices.

Argentine government and farmer conflict leading to potential for increased exports of U.S. soy.

CBOT-SOYOIL
- May up 0.28 cent at 31.14 cents per lb. Spillover support from higher soy futures and crude oil.

FCPO-KUALA LUMPUR, March 17 (Reuters) - Malaysian crude palm oil futures climbed 1.1 percent on Tuesday, supported by sturdier crude and soyoil markets although expectations of slower exports in the second half of March weighed on sentiment.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange ended up 20 ringgit to 1,922 ringgit ($523.8) after going as high as 1,940 ringgit.

Other traded months rose between 5 and 37 ringgit <0#KPO:>. Overall volumes jumped to 15,564 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, March 17 (Reuters) - Singapore shares <.FTSTI> dropped more than 1 percent on Tuesday, ending two days of gains, with bank shares falling back as investors turned cautious over the outlook for the U.S. economy.

Thailand's SET index <.SETI> dipped 0.54 percent, pulled down by a 1.95 percent fall in the biggest bank, Bangkok Bank , and Indonesia <.JKSE> eased 0.96 percent, weighed down by a 1.2 percent fall in state-run Bank Rakyat .

Bucking the trend, Malaysia's main stock index <.KLSE> edged up 0.12 percent, pushed up by index heavyweight palm planter Sime Darby , which rose 2.78 percent, and by IOI Corp , which gained 1.6 percent.

DJI Daily: pulled back after the recent sharp drop


Market pulled back after the recent drop for a healthy correction. However, the overall daily technical landscape remains cautious and we are now looking for the downside support at 6900-6800 followed by the recent low at 6469. For upside, resistance is a 7400-7450 followed by 7700-7800.

KLSE Daily: Bear took a little breathe


Bear took a little breathe and looks market may stick to its sideways move in near term. We now look for the upside resistance at 850. While, downside support is at 835.

FKLI Daily: struggle to survive


Market struggles to defend above 830 levels. Market looks may move sideways in near term with upside resistance and downside support is pegged at 856-858 and 833.5 level respectively.

FCPO Daily: bias upside potential


Market maintained bias upside potential with immediate support stood at 1900-1890 followed by 1840-1830. While, upside resistance is at 1970-2000.