Thursday, May 7, 2009

Trader's Comment: CPO futures ended mixed after a rather choppy and cautious trading day.

CPO futures ended mixed after a rather choppy and cautious trading day. Initially it opened RM 35 higher at 2715 and climbed to 2730 tracking overnight CBOT strong closing. However, profit taking activities emerged and sent benchmark July prices eased and slid to 2650 before it ending at 2665 for the morning lunch break. Afternoon session saw prices hovering between 2660 to 2720 before it settling unchanged at 2680. Total daily volume decline to 17,549 contracts changed hands. Reuters poll shows that April production seen up 5% from March 09 and put end April end stock down 4.7% to 22 month low at 1.3 million tonnes.

Breaking News-RTRS-Slow corn seeding in eastern US Midwest may add soy

CHICAGO, May 5 (Reuters) - Grain planting this spring in the United States, the world's largest exporter, is turning into a tale of two Corn Belts -- with one possibly seeing more soybeans than expected in the ground by June, experts say.
As a rule of thumb, corn not in the ground by May 15 in Iowa and Illinois tends to yield a bushel an acre less per day due to the shorter growing season and autumn frosts. So after that date, farmers often switch soy, a faster-growing crop.

Breaking News-RTRS-UPDATE 1-Argentine soy outlook steady at 34 mln T- exchange

BUENOS AIRES, May 6 (Reuters) - Argentina's 2008/09 soy harvest is seen at 34 million tonnes, unchanged from a previous weekly estimate, the Buenos Aires Grains Exchange said on Wednesday.

Trader's Highlight

DJI-NEW YORK, May 6 (Reuters) - U.S. stocks rose on Wednesday after a private-sector reading on the labor market signaled unemployment may be receding and leaked bank stress test results suggested most banks are healthier than previously thought.

The number of U.S. private sector job losses in April touched the lowest level since November, according to a report by ADP Employer Services, the latest data suggesting the worst of the recession may have passed.

The government is due to release stress test results on Thursday. Several reports on the capital needs for 10 of the 19 banks under the government's microscope have revealed how well the industry will cope with perhaps the most severe recession
since World War Two.

The Dow Jones industrial average <.DJI> rose 101.63 points, or 1.21 percent, to 8,512.28. The Standard & Poor's 500 Index <.SPX> climbed 15.73 points, or 1.74 percent, to 919.53. The Nasdaq Composite Index <.IXIC> added 4.98 points, or 0.28
percent, to 1,759.10.

NYMEX-NEW YORK, May 6 (Reuters) - U.S. crude oil futures settled at their highest levels in five months on Wednesday as a drawdown in gasoline supplies and a smaller-than-expected rise in crude stocks combined to lift prices.

On the New York Mercantile Exchange, June crude settled up $2.50, or 4.64 percent, at $56.34 a barrel, the highest level since prices closed at $57.04 on Nov. 14, 2008. The contract traded from $53.57 to $56.47, the highest since $58.98 was struck on Nov. 17, 2008, and eclipsing the previous 2009 peak of $54.83 set Tuesday.

CBOT-SOYBEANS - May up 19 cents at $11.35 a bushel; July up 17 cents at $11.18.

Rallied to fresh seven-month high of $11.35 amid reports of low soybean yields in the Argentine harvest, tight stocks of soy and continued active buying of soy by China.

The Buenos Aires Grains Exchange on Wednesday left unchanged from the previous week its forecast for the country's soybean crop at 34 million tonnes.

CBOT-SOYOIL - May up 0.96 cent at 38.65 cents per lb., July up 0.99 at 38.98 cents. Soaring soybeans and crude oil and strong Asian vegoil markets pushing soyoil higher.

FCPO
-JAKARTA, May 6 (Reuters) - Malaysian palm futures rose 2.1 percent on Wednesday, recouping most of the losses from a day earlier on concerns over tight supplies, traders said.

The benchmark July contract rose 55 ringgit to 2,680 ringgit per tonne ($758.99). Overall volume was nearly triple the usual amount, at 28,609 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, May 6 (Reuters) - Singapore stocks jumped 5 percent
on Wednesday as better-than-expected quarterly results pushed shares in big banks to a seven-month high, while news on government stimulus spending boosted Thai building stocks.

Singapore <.FTSTI> ended up 5.1 percent at its highest close since Oct. 14, after a 14 percent rally over the past four sessions as equity fund managers warmed to Southeast Asia's biggest stock market amid hopes for an economic recovery.

Elsewhere, Malaysia <.KLSE> climbed 1.5 percent, Indonesia <.JKSE> was up 1.5 percent and Philippine shares <.VNI> rose for a fourth day, up 0.4 percent.

Gainers in the region included Malaysia's Maybank , which rose 7.4 percent, Indonesia's Perusahaan Gas Negara , which gained 6.7 percent, and Bank of the Philippine Islands , which was up 2.4 percent.

DJI Daily: Gaining ground


Market was gaining ground to continue its sideways to bias upside potential in near tern. Resistance remains at 8600-8700 followed by 9000. Downside support is pegged at 8000 level.

KLSE Daily: Uptrend is extending


Bull was getting stronger after violated the resistance at 1020. Thus, we are now looking for upside resistance at 1030-1040. To the downside, support is stood at 1000.

FKLI Daily: Bull is eyeing 1050


Fantastic bull power led market to test the resistance at 1030 in intra-day basis. Market looks likely to challenge again the upside resistance at 1030-1040 followed by 1050. To the downside, support remains at 998-993.5 (gap left over on 4/5/2009).

FCPO Daily: Holding well at 2600 mark


Market was holding well and building base at 2600 mark after a healthy correction. Bull looks likely to waltz towards the northern direction in near term. We continue to look for the upside resistance at 2798-2800 followed by 2850-2870.To the downside, support is pegged at 2600-2580.