Thursday, April 30, 2009
Trader's Comment: Palm oil futures ended with triple digit gains after rallied strongly on pre-long weekend covering.
Palm oil futures ended with triple digit gains after rallied strongly on pre-long weekend covering. The released of end April export data which is within market expectation further enhanced traders’ belief that palm oil end stock for the month of April will likely to draw down further. Market sentiment was very bullish today as CPO market resumed from its weekly bull run after digesting the swine flu fears since the beginning of this week. Benchmark July09 opened RM31 higher at 2511 and rallied all the way up through out the day. It hit intra day high of 2618 before it finally ended RM115 higher at 2595. Bullish external markets coupled with pre-long weekend short covering had boosted the buying sentiment in local CPO market. Daily volume increased tremendously to 32,076 contracts changed hands.
Breaking News-RTRS-Malaysia rates unchanged, easing may be over
KUALA LUMPUR, April 29 (Reuters) - Malaysia's central bank kept its key rate unchanged on Wednesday, against expectations of a Reuters poll, in a move that analysts said signalled it may pause after cuts totalling 150 basis points.
The overnight policy rate was kept steady at 2 percent after a 50 basis point cut in February, the last rate setting meeting, contrary to analyst forecasts of a 25 basis point cut according to a Reuters poll.
The overnight policy rate
Breaking News-RTRS-China cancelling soy cargoes as margins fall-trade
BEIJING/SINGAPORE, April 29 (Reuters) - Chinese soybean buyers have cancelled up to five U.S. soybean cargoes in the past few days because plentiful imports are squeezing crushing margins, traders said on Wednesday.
"We heard some 4-5 cargoes for June, July and August shipment were cancelled. Crushing margins have fallen a lot recently," said one Beijing-based trading manager with an international trading house.
Some of the traders contacted by Reuters said they had no direct knowledge of the actual cancellations, and gave varying estimates of the number of cargoes that had been cancelled.
Another trading manager said he had also heard of similar amount of cancellations but could not confirm the details, while several sources put the number of shipments at two or three.
"We heard some 4-5 cargoes for June, July and August shipment were cancelled. Crushing margins have fallen a lot recently," said one Beijing-based trading manager with an international trading house.
Some of the traders contacted by Reuters said they had no direct knowledge of the actual cancellations, and gave varying estimates of the number of cargoes that had been cancelled.
Another trading manager said he had also heard of similar amount of cancellations but could not confirm the details, while several sources put the number of shipments at two or three.
Trader's Highlight
DJI-NEW YORK, April 29 (Reuters) - U.S. stocks climbed on Wednesday after grim growth data offered hints of future expansion, a prospect reinforced by the Federal Reserve's hopeful comments.
Gross domestic product dropped at a 6.1 percent annual rate in the first quarter, but the data showed consumer spending rose and a decline in inventories suggested
manufacturers and retailers will have to stock up in merchandise.
The central bank backed up the positive sentiment when its policy meeting concluded and the Fed said the economic outlook had improved modestly since its last meeting in March.
The Dow Jones industrial average <.DJI> gained 168.78 points, or 2.11 percent, to 8,185.73. The Standard & Poor's 500 Index <.SPX> gained 18.48 points, or 2.16 percent, to 873.64. The Nasdaq Composite Index <.IXIC> gained 38.13 points, or 2.28 percent, to 1,711.94.
NYMEX-NEW YORK, April 29 (Reuters) - U.S. crude futures ended higher on Wednesday, backed by a rebound on Wall Street and as traders shrugged off a large build in crude stocks and banked instead on a bigger-than-forecast drawdown in gasoline stocks.
On the New York Mercantile Exchange, June crude settled up $1.05, or 2.1 percent, at $50.97 a barrel, trading from $49.12 to $51.42.
CBOT-SOYBEANS - May up 44-1/2 cents at $10.34 per bushel. New-crop November up 32-1/2 at $9.32-1/2.
Rebounding from the swine flu-induced plunge on Monday. Support from tight U.S. soy stocks and disappointing South American harvest along with higher crude, stock markets and softer dollar.
Overhanging market was talk that China canceled up to five U.S. cargoes of soybeans amid softer crush margins.
CBOT-SOYOIL - May up 0.53 cent at 35.43 cents per lb. Higher soybeans and crude oil boosts soyoil.
FCPO-KUALA LUMPUR, April 29 (Reuters) - Malaysian crude palm oil futures gained 1 percent on Wednesday, bouncing off one-week lows earlier in the session, as investors shifted focus from swine flu to expectations of higher demand.
The benchmark July contract on the Bursa Malaysia Derivatives Exchange settled up 24 ringgit at 2,480 ringgit ($690) a tonne after going as low as 2,413, a level unseen since April 21.
Other traded months ranged between a 10 ringgit fall and gains of up to 35 ringgit <0#KPO:>. Overall volume more than doubled to 24,260 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, April 29 (Reuters) - Singapore, Thai and Malaysian
stocks rebounded on Wednesday as investors bought back blue chips, betting that a swine flu outbreak would be contained and cheered by some improvement in U.S. economic data.
Southeast Asian countries have so far reported no cases of the flu, which has caused more than 150 deaths in Mexico.
Singapore's Straits Times Index <.FTSTI> recovered 2.28 percent, a day after falling to a near three-week low, while Thai stocks <.SETI> closed up 2.28 percent at their highest level since Oct. 13, 2008.
Malaysian shares <.KLSE> rose 0.18 percent, Indonesian stocks <.JKSE> rose 3.02 percent to a one-week high and Vietnam <.VNI> rose 1.88 percent, but Philippine shares <.PSI> fell for the third day, down 0.12 percent.
Gross domestic product dropped at a 6.1 percent annual rate in the first quarter, but the data showed consumer spending rose and a decline in inventories suggested
manufacturers and retailers will have to stock up in merchandise.
The central bank backed up the positive sentiment when its policy meeting concluded and the Fed said the economic outlook had improved modestly since its last meeting in March.
The Dow Jones industrial average <.DJI> gained 168.78 points, or 2.11 percent, to 8,185.73. The Standard & Poor's 500 Index <.SPX> gained 18.48 points, or 2.16 percent, to 873.64. The Nasdaq Composite Index <.IXIC> gained 38.13 points, or 2.28 percent, to 1,711.94.
NYMEX-NEW YORK, April 29 (Reuters) - U.S. crude futures ended higher on Wednesday, backed by a rebound on Wall Street and as traders shrugged off a large build in crude stocks and banked instead on a bigger-than-forecast drawdown in gasoline stocks.
On the New York Mercantile Exchange, June crude
CBOT-SOYBEANS - May
Rebounding from the swine flu-induced plunge on Monday. Support from tight U.S. soy stocks and disappointing South American harvest along with higher crude, stock markets and softer dollar.
Overhanging market was talk that China canceled up to five U.S. cargoes of soybeans amid softer crush margins.
CBOT-SOYOIL - May
FCPO-KUALA LUMPUR, April 29 (Reuters) - Malaysian crude palm oil futures gained 1 percent on Wednesday, bouncing off one-week lows earlier in the session, as investors shifted focus from swine flu to expectations of higher demand.
The benchmark July contract
Other traded months ranged between a 10 ringgit fall and gains of up to 35 ringgit <0#KPO:>. Overall volume more than doubled to 24,260 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, April 29 (Reuters) - Singapore, Thai and Malaysian
stocks rebounded on Wednesday as investors bought back blue chips, betting that a swine flu outbreak would be contained and cheered by some improvement in U.S. economic data.
Southeast Asian countries have so far reported no cases of the flu, which has caused more than 150 deaths in Mexico.
Singapore's Straits Times Index <.FTSTI> recovered 2.28 percent, a day after falling to a near three-week low, while Thai stocks <.SETI> closed up 2.28 percent at their highest level since Oct. 13, 2008.
Malaysian shares <.KLSE> rose 0.18 percent, Indonesian stocks <.JKSE> rose 3.02 percent to a one-week high and Vietnam <.VNI> rose 1.88 percent, but Philippine shares <.PSI> fell for the third day, down 0.12 percent.
DJI Daily: Remain sideways
Market shows its effort to test the immediate resistance at 8100-8200 level. Nevertheless, it was not enough to change the current immediate outlook in sideways mode. Thus, we continue to look for the resistance at 8300-8400. While, downside remains at 7700.
KLSE Daily: Consolidation mode to be continue
Market likely to consolidate in near term. We are now looking for upside resistance at 975-980. Meanwhile, downside support is pegged at 950-936.
FKLI Daily: struggle to survive
Market recovered a little after straight two days losses. As for now, we look for the upside resistance at 980-990. While, downside support is pegged at 950.
FCPO Daily: 2400 mark defended well
Market manage to recover a little following 2400 mark defended well. W continue to look for the upside resistance at 2530-2535 (unfill gap left over since 27/4/2009). To the downside, immediate support is pegged at 2400-2370.
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