Monday, April 27, 2009

Trader's Comment: CPO futures fell sharply lower on spill over from eCBOT soy oil collapse due to swine flu spread concern.

CPO futures fell sharply lower on spill over from eCBOT soy oil collapse due to swine flu spread concern. Benchmark July09 immediately gapped down RM85 lower to open at 2500 and thereafter trading in a range between 2514-2471 for the rest of the day before it finally settled RM104 lower at 2481. Global vege oil market were hit hard today as speculation that the outbreak of swine flu in Mexico that may have spread overseas, could jeopardize government effort to end global recession and reduce demand prospects for livestock feed. Dalian palm dropped to daily limit of 5% while eCBOT soy oil also tumbled more than 4%. Generally, the overall market was still supportive as traders are confident on palm oil and believe that end stocks still low and tight. Daily volume remained heavy with total 20,253 contracts changed hands.

Breaking News-(BN) Malaysia Raises Foreign Limits as Najib Opens Economy (Update)

April 27 (Bloomberg) -- Malaysia raised foreign ownership limits at non-commercial banks and will let in more overseas lenders as Prime Minister Najib Razak attempts to soften the economic slowdown and offset a slump in investment.
Overseas investors will be able to own 70 percent of local insurers, Islamic and investment banks, and sellers of Shariah- compliant insurance, up from 49 percent, Najib said today at his office in Putrajaya, outside Kuala Lumpur. Malaysia will issue three new licenses to foreign banks in 2011, he said.

Breaking News-RTRS-China warns over high soy, rapeseed imports-MOFCOM

BEIJING, April 24 (Reuters) - China's commerce ministry warned on Friday about potential risks as China's soybean and rapeseed imports in April approach record levels.
The large imports may cause an oversupply in the country because harvesting is about to begin for the new domestic rapeseed crop, while demand for cheaper palmoil is expected to pick up as the weather gets warmer.

Trader's Highlight

DJI-NEW YORK, April 24 (Reuters) - U.S. stocks rallied on Friday as earnings showed companies have weathered the recession and economic data raised hopes the economic cycle may have hit a bottom.

Investors were also undeterred by a government release of a much anticipated concept paper on stress tests for the 19 biggest U.S. financial services companies.

The Dow Jones industrial average <.DJI> added 119.23 points, or 1.50 percent, to 8,076.29. The Standard & Poor's 500 Index <.SPX> rose 14.31 points, or 1.68 percent, to 866.23. The Nasdaq Composite Index <.IXIC> gained 42.08 points, or 2.55 percent, to 1,694.29.

NYMEX-NEW YORK, April 24 (Reuters) - U.S. crude oil futures ended higher on Friday for the fourth day in a row as Wall Street extended gains and as a weaker dollar attracted commodities buyers.

On the New York Mercantile Exchange, June crude settled at $51.55 a barrel, up $1.93, or 3.89 percent, after trading from $49.06 to $51.75. From a week ago, front-month prices were up $1.22, or 2.4 pct. For the year, prices were up $6.95, or 15.6 percent.

CBOT-SOYBEANS - May up 2-1/2 cents at $10.40-1/4 per bushel.

Tight soy stocks, strong exports, weak dollar and higher equities support. Gains limited by profit-taking and consolidation trade after the soy market on Thursday rallied to technical resistance area at 200-day moving averages, then faltered.

Trade expects USDA late on Monday to show U.S. soybean seeding progress 3 percent complete, down from 4 percent average pace.

CBOT-SOYOIL
- May up 0.14 cent at 36.34 cents per lb. Firm crude oil and gains in Asian trade palm oil lend support.

FCPO-JAKARTA, April 24 (Reuters) - Malaysian crude palm oil futures edged up to a 34-week high on Friday on expectations that data due out Monday would show good palm oil exports during the first 25 days of April, traders said.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange ended up 5 ringgit, or 0.2 percent, at 2,585 ringgit ($721.46), the strongest closing level since August 29.

The benchmark contract hit an intraday low of 2,535 ringgit and a high of 2,648 ringgit, a level not seen since August 25.

Other traded months rose between 3 and 48 ringgit. <0#KPO:> Overall volume was more than double the usual level at 23,396 lots of 25 tonnes each.
basic charges. [nMAN172576]

REGIONAL EQUITIES-BANGKOK, April 24 (Reuters) - Singapore shares <.FTSTI> fell
on Friday, hurt by a plunge in first-quarter earnings from CapitaLand ,while Thai stocks <.SETI> rose after a 12-day state of emergency was lifted.

Other Southeast Asian markets were mixed. Malaysia <.KLSE> rose for a third day, up 1.43 percent to its highest since Oct. 7, but Indonesia <.JKSE> drifted 0.09 percent to an eight-day low and Vietnam <.VNI> fell 1.68 percent.

The Philippine market <.PSI> closed up 1.7 percent at a six-month high, helped by a jump in Manila Electric Co of 11.8 percent after the regulator said the firm could raise its basic charges.

DJI Weekly: Remains sideway


Market remains sideways. Thus, we maintain the upside resistance and downside support at 8300-8400 and 7500-7400 level respectively.

KLSE Weekly: Likely to challenge 1000 mark


Market violated 973-993 level and looks may want to challenge the next resistance at 1000-1015. To the downside, support remains at 936.

FKLI Weekly: Strengthen further


Market hits 1000 mark before closing with good ending for the week had added more strength to the immediate technical landscape. Thus, we maintain positive towards the near term market. We are now looking for the upside resistance at 1030-1040. Downside support is pegged at 940-935

FCPO Weekly: Bullish tone remains firm


Market extended its winning streak for the straight fourth week. Bullish tone remains firm and steady following resistance at 2550-2600 was violated. As for now, we look for the immediate upside resistance at 2665-2675 followed by 2700-2750. While, downside support is pegged at 2300-2275.