Monday, March 23, 2009

Trader's Comment: CPO futures rallied to 10 week high but ended off its high on profit taking.

CPO futures rallied to 10 week high but ended off its high on profit taking. Benchmark Jun09 surged to intraday high of 2051 in the afternoon session before some intraday profit taking activities emerged and sent prices to ease off slightly before it settled RM45 higher at 2030. Global commodity prices including vege oil market had been rising steadily due to continuous weakening of the US dollar. eCBOT soy oil and Dalian palm also rallied strongly since early Asian time trading. This led Benchmark Jun09 to jump immediately above 2000 during opening bell to open RM25 higher at 2010 and was well supported at that level through out the day. The bullish sentiment in CPO market was also enhanced by trader’s expectations that palm oil stock may continue to decline this month despite lower export recently reported by private cargo surveyors.

Breaking News-RTRS-UPDATE 2-Argentina gives provinces a share of soy taxes

BUENOS AIRES, March 19 (Reuters) - Argentina's president unveiled a plan on Thursday to share soy export tax revenue with provincial governments, in what farmers called a ploy to broaden support for a levy they despise.
Center-left President Cristina Fernandez said 30 percent of soy tax proceeds would go to the provinces, estimating the annual sum at $1.78 billion. This would boost provincial income from shared revenue by 11 percent, she added.
But farm leaders who are lobbying Congress for lower soy export taxes rejected the measure, raising the specter of fresh protests as part of a year-long standoff over government policy.

Breaking News-RTRS-Soyoil may outpace palm on India import tax cut-Mistry

KUALA LUMPUR, March 20 (Reuters) - India, a top vegetable oil importer, may see prices of imported soyoil keep their premium over rival palm oil due to increased demand after a cut in soyoil import duties, a leading analyst said on Thursday.
Dorab Mistry, head of vegetable oil purchasing with Indian conglomerate Godrej International, said the world's second-largest consumer of vegetable oil after China may import up to 1.5 million tonnes of soyoil from Nov 2008 till Oct 2009.
Soyoil imports were originally estimated by traders to be about 1.4 million tonnes for the period.

Trader's Highlight

DJI-NEW YORK, March 20 (Reuters) - U.S. stocks fell on Friday, as long-standing worries about the health of the banking system resurfaced and a brokerage said American Express may post yearly losses and cut its dividend.

The Dow Jones industrial average <.DJI> dropped 108.01 points, or 1.46 percent, to 7,292.79. The Standard & Poor's 500 Index <.SPX> fell 15.56 points, or 1.98 percent, to 768.48. The Nasdaq Composite Index <.IXIC> lost 31.51 points, or 2.12 percent, to 1,451.97.

NYMEX-NEW YORK, March 20 (Reuters) - U.S. crude oil futures slipped on Friday, after seesawing as the front-month April contract went to expiration and following crude oil's strong rally the previous session.

On the New York Mercantile Exchange, expiring April crude fell 55 cents, or 1.07 percent, to settle at $51.06 a barrel, trading from $50.30 to $52.13, just below Thursday's $52.25 high, which was a 2009 front-month intraday peak.

CBOT-SOYBEANS
- May up 11-1/2 cents per bushel at $9.52 per bushel. Support from conflict between Argentine government and farmers over government's export tax on soy and on news China bought more soy from the U.S.

CBOT-SOYOIL
- May up 0.36 cent per lb at 32.25 cents per lb. Following soy with gains limited a bit of a rebound for dollar after its plunge at mid-week.

FCPO-KUALA LUMPUR, March 20 (Reuters) - Malaysian crude palm oil futures rose 3.9 percent on Friday as crude oil's surge in the previous session sent a flood of buyers in through global vegetable oil markets from China to the United States.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange rose 74 ringgit to 1,985 ringgit ($543.8) per tonne, a level unseen since March 11.

Other traded months rose between 52 and 110 ringgit. Overall volumes more than doubled to 24,509 lots of 25 tonnes each versus the usual 10,000 lots.

REGIONAL EQUITIES
-BANGKOK, March 20 (Reuters) - Southeast Asian stock markets
edged higher on Friday, with rises in oil prices driving gains in energy-related firms such as Keppel Corp and PTT PCL , sending Singapore and Thailand to three-week highs.

Singapore's benchmark Straits Time Index <.FTSTI> rose 0.76 percent to its highest close since Feb. 26 due to demand for energy-related stocks and some final-hour buying of major banks.

Indonesia's main stock index <.JKSE> rose 1.44 percent and earlier touched its highest since Jan. 19.

Malaysia's main stock index <.KLSE> was in the red in morning trade but turned round to climb 0.54 percent to a two-week closing high.

Weekly DJI: Looking for a base support


Market is searching for a base support to cushion from the current weak technical landscape. Immediate support is pegged at 6500-6400. While, upside resistance is stood at 7800-8000.

Weekly KLSE: Holding ground


Market was holding ground and likely to continue its sideways move in near term. As for now, resistance is at 867-873. While, downside support is stood at 838-835.

Weekly FKLI: Stuck at sideways


Sideways move likely to extend in near term as nothing much changes on the technical outlook. We put the resistance and support at 875-880 and 833-835 level respectively.

Weekly FCPO: Eyeing 2000-2058


Market gaining ground following prices close at weekly high. Market looks had found base around 1828-1840 and may continue to move sideways to higher in near term. Upside resistance is stood at 2000-2058.