KUALA LUMPUR, April 17 (Reuters) - Stung by the twin woes of erratic weather and aggressive replanting, palm oil traders are bracing for a supply squeeze in the months ahead, spurring importers to stock up ahead of an anticipated rise in demand.
This is already reflected in Malaysian prices -- palm is one of the biggest gainers this year, soaring 42 percent -- and analysts say any further rise may force Indian and Chinese buyers to shift to soy oil, which has risen at a much lower rate.
Analysts said top producers Indonesia and Malaysia could see palm output fall in April-June, rather than a gradual increase as usually expected, driving total stocks down by more than half to below 2.5 million tonnes by the end of the period, from a record 5 million tonnes in November.
Monday, April 20, 2009
Breaking News-RTRS-China seen extending soybean buying plan
BEIJING, April 17 (Reuters) - China will extend state purchases of domestic soybeans by two months beyond the scheme's planned April expiry, traders said on Friday, a move that could keep imports at the near record levels that have boosted Chicago futures to six-month highs.
The government is still 2 million tonnes short of its target for purchases as many farmers are still holding onto last year's harvest, while beans often don't meet required moisture levels.
"The purchase for reserves will last until June, but the amount will remained unchanged. The authorities are close to a decision as far as we know," said Yu Haifeng, a dealer with Heilongjiang Tianqi Futures Co. Ltd.
The government is still 2 million tonnes short of its target for purchases as many farmers are still holding onto last year's harvest, while beans often don't meet required moisture levels.
"The purchase for reserves will last until June, but the amount will remained unchanged. The authorities are close to a decision as far as we know," said Yu Haifeng, a dealer with Heilongjiang Tianqi Futures Co. Ltd.
Trader's Highlight
DJI-NEW YORK, April 17 (Reuters) - U.S. stocks rose on Friday, with the Dow scoring its biggest six-week gain since July 1938, helped by a reassuring report on the mood of consumers and stabilization in General Electric and Citigroup's quarterly results.
GE and Citigroup both posted better-than-expected results, lifting the broader market, and bank stocks rallied as investors bet other financial companies could follow up with more news showing the sector is on the mend.
The Dow Jones industrial average <.DJI> rose 5.90 points, or 0.07 percent, to 8,131.33. The Standard & Poor's 500 Index <.SPX> climbed 4.30 points, or 0.50 percent, to 869.60. The Nasdaq Composite Index <.IXIC> added 2.63 points, or 0.16
percent, to 1,673.07.
NYMEX-NEW YORK, April 17 (Reuters) - U.S. crude oil futures ended higher on Friday, backed by Wall Street's rise on economic optimism, but gains were pared sharply from the day's highs amid bloated oil inventories and poor demand.
On the New York Mercantile Exchange, May crude ended up 35 cents, or 0.7 percent, at $50.33 a barrel, trading from $49.41 to $51.37. From the previous week, it fell $1.91, or 3.66 percent.
CBOT-SOYBEANS - May down 7-1/2 cents per bushel at $10.51 per bushel.
Turned lower on profit taking after soaring to fresh six-month high of $10.73, surpassing 200-day moving average of $10.71-1/4.
Exporters sell 275,000 tonnes U.S. soybeans to unknown, including 55,000 tonnes for 2008/09 - USDA.
Aggressive buying of U.S. and Brazilian soybeans this week, 10-15 cargoes, by China and reports of low soybean yields in the Argentine harvest fueled this week's soy rally.
CBOT-SOYOIL - May up 0.02 cent per lb at 36.77 cents per lb. Support from rally in Asian trade for soyoil and palm oil.
FCPO-KUALA LUMPUR, April 17 (Reuters) - Malaysian palm futures jumped 3.3 percent on Friday as traders chased tight supplies, renewing a rally that saw palm widen its premium to soyoil.
The benchmark July contract on the Bursa Malaysia Derivatives Exchange settled up 77 ringgit to 2,435 ringgit ($673.8) per tonne.
Other traded months rose between 20 and 77 ringgit while Sept 2010 contract fell 25 ringgit <0#KPO:>. Overall volume stood at 17,340 lots of 25 tonnes each.
REGIONAL EQUITIES-Other major Southeast Asian stock markets ended with small
gains, with Asian stocks in general rising after better-than-expected results from JPMorgan.
Singapore <.FTSTI> rose 0.3 percent, with top lender DBS Group up 0.5 percent and telecom firm SingTel up 0.8 percent. Malaysia <.KLSE> gained 0.4 percent, with biggest power firm Tenaga Nasional up 2.9 percent. Indonesia <.JKSE> extended its gains for a fifth day, ending
up 0.6 percent,
GE and Citigroup both posted better-than-expected results, lifting the broader market, and bank stocks rallied as investors bet other financial companies could follow up with more news showing the sector is on the mend.
The Dow Jones industrial average <.DJI> rose 5.90 points, or 0.07 percent, to 8,131.33. The Standard & Poor's 500 Index <.SPX> climbed 4.30 points, or 0.50 percent, to 869.60. The Nasdaq Composite Index <.IXIC> added 2.63 points, or 0.16
percent, to 1,673.07.
NYMEX-NEW YORK, April 17 (Reuters) - U.S. crude oil futures ended higher on Friday, backed by Wall Street's rise on economic optimism, but gains were pared sharply from the day's highs amid bloated oil inventories and poor demand.
On the New York Mercantile Exchange, May crude
CBOT-SOYBEANS - May
Turned lower on profit taking after soaring to fresh six-month high of $10.73, surpassing 200-day moving average of $10.71-1/4.
Exporters sell 275,000 tonnes U.S. soybeans to unknown, including 55,000 tonnes for 2008/09 - USDA.
Aggressive buying of U.S. and Brazilian soybeans this week, 10-15 cargoes, by China and reports of low soybean yields in the Argentine harvest fueled this week's soy rally.
CBOT-SOYOIL - May
FCPO-KUALA LUMPUR, April 17 (Reuters) - Malaysian palm futures jumped 3.3 percent on Friday as traders chased tight supplies, renewing a rally that saw palm widen its premium to soyoil.
The benchmark July contract
Other traded months rose between 20 and 77 ringgit while Sept 2010 contract fell 25 ringgit <0#KPO:>. Overall volume stood at 17,340 lots of 25 tonnes each.
REGIONAL EQUITIES-Other major Southeast Asian stock markets ended with small
gains, with Asian stocks in general rising after better-than-expected results from JPMorgan.
Singapore <.FTSTI> rose 0.3 percent, with top lender DBS Group
up 0.6 percent,
DJI Weekly: Not much changes
Market remains hovering around 8000 mark. Thus, we maintain the upside resistance and downside support at 8300-8400 and 7500-7400 level respectively.
KLSE Weekly: Maintain its upward move
Market looks may continue to move higher with upside resistance now is looking at 973-993. To the downside, support is pegged at 936.
FKLI Weekly: Remains looking good
Weekly chart remains looking good following market hits a new high for the year. Thus, we maintain positive towards the near term market. We are now looking for the upside resistance at 980-990. Downside support is pegged at 935-925
FCPO Weekly: Remains in bullish tone
Bull looks not to give up although market has been rebounded sharply for three weeks in a row. As for now, we look for the upside resistance at 2550-2600 followed by 2665-2675. While, downside support is pegged at 2300-2275 followed by 2200-2185.
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