Tuesday, May 19, 2009
Trader's Comment: Palm oil futures rebounded strongly from yesterday’s losses in anticipation of bullish export data
Palm oil futures rebounded strongly from yesterday’s losses in anticipation of bullish export data and regional positive equity market. Benchmark Aug09 immediately gap up RM37 higher to open at 2607 following overnight NYMEX crude oil bounced back sharply from its previous losses. It then climbed steadily through out the most of the sessions and hit intra day high of 2665 before it eased off slightly and settled RM60 higher at 2630. Traders began to gain back confidence again in the strong fundamentals of CPO market after a market talk that export data which is scheduled to release tomorrow may hit 814k tonnes level compared to 1-20 April at 754k tonnes. This helped to further enhance buying activities in BMD. External markets also had showed some supportive moves. Dalian palm ended more than 3% higher while eCBOT soy oil gained back its earlier losses to edged higher.
Breaking News - RTRS-INTERVIEW-China to stay strong buyer of soy - Bunge exec
ST.LOUIS, May 18 - China will remain a strong buyer of soybeans through 2009 as it builds up domestic reserves and imports soy to meet the demands of its expanding meat sector, a top Bunge executive said on Monday.
"We do expect China to be a significant buyer throughout the remainder of this year and on into the future," Carl Hausmann, president and chief executive officer of Bunge North America, told Reuters on the sidelines of the World Agricultural Forum, a food industry gathering in St. Louis.
"We do expect China to be a significant buyer throughout the remainder of this year and on into the future," Carl Hausmann, president and chief executive officer of Bunge North America, told Reuters on the sidelines of the World Agricultural Forum, a food industry gathering in St. Louis.
Trader's Highlight
DJI - NEW YORK, May 18 - U.S. stocks rallied on Monday as better-than-expected results from the No. 2 U.S. home improvement retailer, Lowe's Cos Inc, helped spark
broad-based buying on hopes the recession is easing and consumer spending is stabilizing.
Investors' optimism extended to sectors closely aligned with economic growth, including homebuilders, banks, energy companies and retailers. Positive broker comments on Bank of America Corp, up nearly 10 percent at $11.73, boosted financial shares, while rising oil prices improved the outlook for energy names.
The Dow Jones industrial average gained 235.44 points, or 2.85 percent, to 8,504.08. The Standard & Poor's 500 Index rose 26.83 points, or 3.04 percent, to
909.71. The Nasdaq Composite Index advanced 52.22 points, or 3.11 percent, to 1,732.36.
NYMEX - NEW YORK, May 18 - U.S. crude oil futures settled almost 5 percent percent higher on Monday on supply jitters after unrest in Nigeria flared up and a fire reduced production at a large Sunoco refinery in Pennsylvania.
On Wall Street, hopes of economic recovery re-emerged and the sentiment spilled over to the oil markets.
On the New York Mercantile Exchange, June crude settled up $2.69, or 4.77 percent, at $59.03 a barrel, the highest settlement since $59.33 on Nov. 11. It traded from
$56.12 to $59.33. Crude hit a six-month intraday high $60.08 on May 12.
CBOT - SOYBEANS - July up 16 cents to $11.46-1/2 per bushel. Turns up as stock market and crude oil rallied and following news China bought more soy from the United States. Tight soy stocks supportive in addition to support from higher stock market and gains in crude oil.
CBOT - SOYOIL - July up 0.26 cent per lb at 38.16 cents per lb. Following soybeans with soyoil futures also boosted by higher crude oil.
FCPO - JAKARTA, May 18 - Malaysian palm futures slipped for a third straight day to a two-week closing low on Monday, extending a drop from a nine-month peak reached last week amid rival soy prices and stock markets, traders said.
A late rebound in some Asian stock markets helped palm to recoup some losses but the recovery was short-lived as investors were still uncertain about the price direction in the absence of any bullish factors.
The benchmark August contract dropped 42 ringgit, or 1.6 percent, at 2,570 ringgit ($723.54) per tonne, the lowest since April 29, coming off an intraday low of 2,513 ringgit. Overall volume was more than double the usual at 24,799 lots of 25 tonnes each.
REGIONAL EQUITIES - BANGKOK, May 18 (Reuters) - Singapore shares rose more than 1
percent on Monday, staging a late rebound like other major Southeast Asian markets, with Singapore Telecommunications, Thailand's Esso and Indonesia's Bank Rakyat leading the way.
Singapore's Straits Time index closed up 1.6 percent, Thailand's SET index gained 1.2 percent and Indonesia's index jumped 3 percent.
Malaysia's benchmark inched down 0.2 percent but that was an improvement on the 1.4 percent loss earlier in the day.
broad-based buying on hopes the recession is easing and consumer spending is stabilizing.
Investors' optimism extended to sectors closely aligned with economic growth, including homebuilders, banks, energy companies and retailers. Positive broker comments on Bank of America Corp, up nearly 10 percent at $11.73, boosted financial shares, while rising oil prices improved the outlook for energy names.
The Dow Jones industrial average gained 235.44 points, or 2.85 percent, to 8,504.08. The Standard & Poor's 500 Index rose 26.83 points, or 3.04 percent, to
909.71. The Nasdaq Composite Index advanced 52.22 points, or 3.11 percent, to 1,732.36.
NYMEX - NEW YORK, May 18 - U.S. crude oil futures settled almost 5 percent percent higher on Monday on supply jitters after unrest in Nigeria flared up and a fire reduced production at a large Sunoco refinery in Pennsylvania.
On Wall Street, hopes of economic recovery re-emerged and the sentiment spilled over to the oil markets.
On the New York Mercantile Exchange, June crude settled up $2.69, or 4.77 percent, at $59.03 a barrel, the highest settlement since $59.33 on Nov. 11. It traded from
$56.12 to $59.33. Crude hit a six-month intraday high $60.08 on May 12.
CBOT - SOYBEANS - July up 16 cents to $11.46-1/2 per bushel. Turns up as stock market and crude oil rallied and following news China bought more soy from the United States. Tight soy stocks supportive in addition to support from higher stock market and gains in crude oil.
CBOT - SOYOIL - July up 0.26 cent per lb at 38.16 cents per lb. Following soybeans with soyoil futures also boosted by higher crude oil.
FCPO - JAKARTA, May 18 - Malaysian palm futures slipped for a third straight day to a two-week closing low on Monday, extending a drop from a nine-month peak reached last week amid rival soy prices and stock markets, traders said.
A late rebound in some Asian stock markets helped palm to recoup some losses but the recovery was short-lived as investors were still uncertain about the price direction in the absence of any bullish factors.
The benchmark August contract dropped 42 ringgit, or 1.6 percent, at 2,570 ringgit ($723.54) per tonne, the lowest since April 29, coming off an intraday low of 2,513 ringgit. Overall volume was more than double the usual at 24,799 lots of 25 tonnes each.
REGIONAL EQUITIES - BANGKOK, May 18 (Reuters) - Singapore shares rose more than 1
percent on Monday, staging a late rebound like other major Southeast Asian markets, with Singapore Telecommunications, Thailand's Esso and Indonesia's Bank Rakyat leading the way.
Singapore's Straits Time index closed up 1.6 percent, Thailand's SET index gained 1.2 percent and Indonesia's index jumped 3 percent.
Malaysia's benchmark inched down 0.2 percent but that was an improvement on the 1.4 percent loss earlier in the day.
DJI Daily: Cloudy
A double digit up of more than two percent had cushioned the market downside momentum. However, market direction remains cloudy as market remains capped in range bound mode. Thus, we maintain immediate downside support at 8000. To the upside, resistance is maintain at 8600-8700.
KLSE Daily: Consolidation phase likely to continue
Market was entering a consolidation phase as prices was defending at the 1000 physiological support. We continue to look for the resistance at 1020-1030. To the downside, support is maintain at 1000 followed by 990.
FKLI Daily: Struggling
Market managed to defend after cover some of the downside gap at 998-993.5. Thus,consolidation phase is likely to continue in near term. As for now, we are looking for the immediate upside resistance at 1020-1025. To the downside, we are looking for the support at 994-993.5 (unfilled gap left over) followed by 975.
FCPO Daily: Losing upside momentum
Immediate technical landscape was losing ground following market violated the 2600 mark support to end lower. As for now, we are now looking for the upside resistance at 2603-2655 (gap left over on 18/5/2009). To the downside, support is pegged at 2500-2490.
Subscribe to:
Posts (Atom)
