Tuesday, April 7, 2009

Trader's comment; The “bull” returned again as crude palm oil futures tested the 2200 mark.

The “bull” returned again as crude palm oil futures tested the 2200 mark. The weak closing of overnight NYMEX crude oil and CBOT soy oil saw Benchmark Jun09 slid to intra day low of 2121 after opened RM15 lower at 2130. However, it then started to bounced back strongly and closed at 2155 before morning break. The strong rally in Dalian palm in the afternoon session led Benchmark Jun09 to immediately gap up when second session resumed trading. Prices climbed to intra day high of 2201 but then slowly eased off again until it finally settled RM35 higher at 2180. Despite the comments made by Commodities Minister Mr Peter Chin, who stated that Malaysia CPO stocks stood at 1.5 million tonnes as of end-March, traders were nevertheless more optimistic on the upcoming MPOB supply & demand data which is due to be released on Friday. They were expecting the stock level to fall to around 1.4 million tonnes. Market sentiment had changed to steady in the afternoon session, Underlying cash market steady as well.

Breaking News-RTRS-Malaysia end-March palm oil stocks 1.5 mln tonnes

PUTRAJAYA, Malaysia, April 7 (Reuters) - Malaysian crude palm oil stocks stood at 1.5 million tonnes as of end-March, Commodities Minister Peter Chin said on Tuesday.
Palm oil inventories have been on a downtrend. In February, crude palm oil stocks fell 15 percent to a 16-month low of 1,561,151 tonnes, official data showed.

Breaking News-RTRS-Argentina puts end to tax breaks on imported soy

BUENOS AIRES, April 6 (Reuters) - Argentina has scrapped tax breaks on imported soybeans in order to promote the use of domestic supplies in crushing plants, the official gazette reported Monday.

Trader's Highlight

DJI-NEW YORK, April 6 (Reuters) - U.S. stocks broke a four-day winning streak on Monday after a prominent analyst revived worries over the health of banks and the potential collapse of a takeover of Sun Microsystems bruised sentiment in the
technology sector.

The Dow Jones industrial average <.DJI> fell 41.74 points, or 0.52 percent, to 7,975.85. The Standard & Poor's 500 Index <.SPX> lost 7.02 points, or 0.83 percent, to 835.48. The Nasdaq Composite Index <.IXIC> was down 15.16 points, or 0.93 percent, at 1,606.71.

Billionaire investor George Soros, meanwhile, told Reuters the U.S. economy was in for "a lasting slowdown" and that it wouldn't recover in 2009. He also said the "banking system as a whole is basically insolvent."

NYMEX-NEW YORK, April 6 (Reuters) - U.S. crude oil futures ended sharply lower on Monday, giving up early gains above $53 as Wall Street tumbled amid renewed worries about the banking industry.

Traders were cautious ahead of U.S. weekly inventory reports due in the next two days. A preliminary Reuters poll showed forecasts for a 2.1-million-barrel build in crude stocks last week, while refined product supplies fell.

On the New York Mercantile Exchange, May crude settled down $1.46, or 2.78 percent, at $51.05 a barrel, after trading from $49.81 to $53.60.

CBOT-SOYBEANS - May down 1-1/2 cents at $9.94 per bushel.

Down following U.S. stock market and crude oil with profit-taking after Friday's rally also weighing on prices. Underpinned by reports of low soy yields in the South American.

CBOT-SOYOIL - May down 0.33 cent at 34.99 cents per lb. Sag in crude oil weighed on prices.

FCPO-JAKARTA, April 6 (Reuters) - Malaysian crude palm oil futures closed lower on Monday, ending a four-day rally, as investors took profits after the benchmark contract hit a fresh intraday high of more than six months, traders said.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange dropped 20 ringgit, or 0.9 percent, to 2,145 ringgit ($603.38) per tonne, after going as high as 2,196 ringgit, a fresh intraday high in more than six months.

Other traded months dropped between 25 and 35 ringgit. <0#KPO:>. Overall volume was at 11,808 lots of 25 tonnes each.

REGIONAL EQUITIES-SINGAPORE, April 6 (Reuters) - Southeast Asian stock markets
extended gains on Monday as rising optimism from investors on the recovery of the global economy lifted banks, energy and commodities stocks.

Singapore's Straits Time Index <.FTSTI> finished 1.5 percent higher to 1,847.98 points, extending its 12-week high, while Kuala Lumpur's benchmark index <.KLSE> jumped 1.85 percent higher to 923.77 points.

DJI Daily: struggle around 8000 mark


Market struggle to survive at 8000 mark. Hence, we continue to look for the upside resistance at 8100-8200. Downside support remained at 7500-7400

KLSE Daily: Bull dominated


Bull continue to dominate the market momentum after tested the resistance at 910-925. Thus, bull may continue its northern journey with upside resistance stood at 928-936. While, downside support is pegged at 912-910 (gap left over on 6/4/2009) followed by 900.

FKLI Daily: maintain upward momentum


Market maintain its upward momentum and slowly inching up. We are now looking for the upside resistance at 930-935. To the downside, support is pegged at 915-910 followed by 900.

FCPO Daily: Tough resistance at 2200 mark


Market just few point away from the critical resistance at 2200 mark. Immediate technical landscape remains looking good thus market may challenge again the upside resistance at 2200-2250 in near term. To the downside, support is pegged at 2070-2050.