Wednesday, June 10, 2009
Trader's Highlight: Palm oil futures edged higher as unexpected bearish stock data offset by strong external markets.
Palm oil futures edged higher as unexpected bearish stock data offset by strong external markets. Benchmark Aug09 initially opened RM20 higher at 2480, following the firm closed in overnight NYMEX crude oil. However, the released of weak 1-10 June export data by both private cargo surveyors had caped the further gains in FCPO. ITS & SGS reported a sharp fell of 28.3% and 35% respectively. Meanwhile, the released of MPOB supply & demand data which saw an unexpectedly rose of 5.72% in end May stock level, led prices to fall further until it hit intra day low of 2451 in the afternoon session. Nevertheless, the strong external market had provided some cushion of support to the local CPO market. The continuous rally of Asian time NYMEX crude oil and eCBOT soy oil, coupled with spill over from bullish regional market led Benchmark Aug09 to bounced back again and ended at the intra-day high of 2501 with total daily volume increase to 18,443 contracts changed hands.
Breaking News-RTRS-Oil World expects tight Brazilian soybean supply
HAMBURG, June 9 (Reuters) - A poor soybean crop this year coupled with high exports and domestic consumption are likely to make Brazilian soybean supplies tight on international markets in coming months, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
It forecast Brazil's harvest will fall to 57.4 million tonnes of soybeans in early 2009, down from 60.0 million tonnes in early 2008.
Despite expectations of a lower crop, Brazil's February/May 2009 soybean exports shot up to 12.5 million tonnes from 9.6 million tonnes in February/May 2008, it said.
It forecast Brazil's harvest will fall to 57.4 million tonnes of soybeans in early 2009, down from 60.0 million tonnes in early 2008.
Despite expectations of a lower crop, Brazil's February/May 2009 soybean exports shot up to 12.5 million tonnes from 9.6 million tonnes in February/May 2008, it said.
Breaking News-RTRS-Dalian soy falls on China state reserve talk, rains
BEIJING/SINGAPORE, June 9 (Reuters) - Speculation that China may release soybeans from its state reserves is putting pressure on Dalian soybean futures <0#DSA:>, which fell about 2 percent on Monday and a further 1.5 percent on Tuesday, traders said.
The government has asked Sinograin, its buying agency, to keep buying soy until the end of June, when it will complete a stockpiling campaign aimed at supporting farm incomes and building up a state reserve that can be called on later in case of sharp price rises.
Traders said the speculation about soybeans was sparked by a read-across from the corn market, which has fallen due to talk of Sinograin releasing some corn stocks later this month.
The government has asked Sinograin, its buying agency, to keep buying soy until the end of June, when it will complete a stockpiling campaign aimed at supporting farm incomes and building up a state reserve that can be called on later in case of sharp price rises.
Traders said the speculation about soybeans was sparked by a read-across from the corn market, which has fallen due to talk of Sinograin releasing some corn stocks later this month.
Trader's Highlight
DJI-NEW YORK, June 9 (Reuters) - The Nasdaq rose on Tuesday after an improved outlook from Texas Instruments lifted technology stocks, but news that 10 big banks will repay TARP funds failed to stir investor enthusiasm.
Department said 10 big banks will pay back $68 billion received under the Troubled Asset Relief Program, or TARP, to the government. But the market quickly fell back on concerns that the money could be put to better use by making loans to businesses and consumers, which would boost the economy.
The Dow Jones industrial average <.DJI> dropped 1.43 points, or 0.02 percent, to 8,763.06. The Standard & Poor's 500 Index <.SPX> gained 3.29 points, or 0.35 percent, to 942.43. The Nasdaq Composite Index <.IXIC> climbed 17.73 points, or 0.96 percent, to 1,860.13.
NYMEX-NEW YORK, June 9 (Reuters) - U.S. crude oil futures struck a new seven-month intraday high in post-settlement trading on Tuesday after the American Petroleum Institute's weekly inventory data showed a much larger-than-expected crude stock
drawdown last week.
The API said domestic crude stocks fell 6.0 million barrels to 357.9 million barrels last week, citing a big drop in imports.
On the New York Mercantile Exchange at the 5:15 p.m. EDT (2115 GMT), July crude was up $2.52, or 3.7 percent, at $70.61 a barrel, after hitting an intraday high of $70.69, the highest since prices hit $71.77 on Nov. 4. The day's low was
$68.43.
CBOT-SOYBEANS - July up 11 cents per bushel at $12.43-1/2.
Climbs to nine-month high with support from lower dollar and higher crude oil. Volatile July/November spread remains the dominant feature with tight soy stocks lifting July while likely increased U.S. soy plantings limit rallies in November.
USDA said 78 percent of the U.S. soybean crop had been planted, below trade estimates for 80 percent and below five-year average of 87 percent.
CBOT-SOYOIL - July up 0.05 cent per lb at 39.45. Gains in crude oil, weak dollar and higher soybeans lifting soyoil futures.
FCPO-JAKARTA, June 9 (Reuters) - Malaysian palm oil futures closed flat on Tuesday, giving up gains of up to around 1.6 percent, as speculation over falling exports in the first 10 days of June sparked some late selling, traders said.
The benchmark August contract on the Bursa Malaysia's Derivatives Exchange settled up 5 ringgit, or 0.2 percent, to 2,465 ringgit ($699.29) per tonne, after trading as high as 2,504 ringgit. Overall volume was 15,648 lots of 25 tonnes each.
REGIONAL EQUITIES-BANGKOK, June 9 (Reuters) - Most Southeast Asian stocks ended
higher on Tuesday, with Singapore coming off a 1-week low and Indonesia rising almost 2 percent as heavyweight shares like Singapore Air and Bank Mandiri led the way.
Equities in the region fell earlier in the day as investors cashed in on recent rallies. Analysts said a weak U.S. dollar boded well for stocks and commodity prices.
Singapore's index <.FTSTI> closed up 0.7 percent, after sliding to a 1-week low in early trade. Indonesia's index <.JKSE> climbed 1.8 percent after a 1.1 percent fall on Monday, and Thailand's index <.SETI> rose 1.3 percent after opening lower.
Bucking the trend, Malaysia index <.KLSE> fell for a second day, down 0.1 percent after Malaysia's long-term local currency rating was cut to A from A-plus by Fitch Ratings.
Department said 10 big banks will pay back $68 billion received under the Troubled Asset Relief Program, or TARP, to the government. But the market quickly fell back on concerns that the money could be put to better use by making loans to businesses and consumers, which would boost the economy.
The Dow Jones industrial average <.DJI> dropped 1.43 points, or 0.02 percent, to 8,763.06. The Standard & Poor's 500 Index <.SPX> gained 3.29 points, or 0.35 percent, to 942.43. The Nasdaq Composite Index <.IXIC> climbed 17.73 points, or 0.96 percent, to 1,860.13.
NYMEX-NEW YORK, June 9 (Reuters) - U.S. crude oil futures struck a new seven-month intraday high in post-settlement trading on Tuesday after the American Petroleum Institute's weekly inventory data showed a much larger-than-expected crude stock
drawdown last week.
The API said domestic crude stocks fell 6.0 million barrels to 357.9 million barrels last week, citing a big drop in imports.
On the New York Mercantile Exchange at the 5:15 p.m. EDT (2115 GMT), July crude
$68.43.
CBOT-SOYBEANS - July
Climbs to nine-month high with support from lower dollar and higher crude oil. Volatile July/November spread remains the dominant feature with tight soy stocks lifting July while likely increased U.S. soy plantings limit rallies in November.
USDA said 78 percent of the U.S. soybean crop had been planted, below trade estimates for 80 percent and below five-year average of 87 percent.
CBOT-SOYOIL - July
FCPO-JAKARTA, June 9 (Reuters) - Malaysian palm oil futures closed flat on Tuesday, giving up gains of up to around 1.6 percent, as speculation over falling exports in the first 10 days of June sparked some late selling, traders said.
The benchmark August contract
REGIONAL EQUITIES-BANGKOK, June 9 (Reuters) - Most Southeast Asian stocks ended
higher on Tuesday, with Singapore coming off a 1-week low and Indonesia rising almost 2 percent as heavyweight shares like Singapore Air and Bank Mandiri led the way.
Equities in the region fell earlier in the day as investors cashed in on recent rallies. Analysts said a weak U.S. dollar boded well for stocks and commodity prices.
Singapore's index <.FTSTI> closed up 0.7 percent, after sliding to a 1-week low in early trade. Indonesia's index <.JKSE> climbed 1.8 percent after a 1.1 percent fall on Monday, and Thailand's index <.SETI> rose 1.3 percent after opening lower.
Bucking the trend, Malaysia index <.KLSE> fell for a second day, down 0.1 percent after Malaysia's long-term local currency rating was cut to A from A-plus by Fitch Ratings.
KLSE Daily: remains firmly bullish
Overall technical landscape looks firmly bullish and market is likely to extend its range trading between the upside resistance at 1080-1090 and downside support at 1066-1063 (gap left over on 5/6/2009).
FKLI Daily: Healthy consolidation likely to extend
Market looks defended well and managed to recoup from early losses. Thus, market is likely to extend its healthy consolidation between 1050 to 1082 in near term. A breakout from the either one may bring a new development to the market direction.
FCPO Daily: Weaken further
Overall technical landscape seem nothing much improve despite a positive closing. Market looks may extend its sideways to lower move in near term. Currently, we maintain the immediate upside resistance at 2500-2525. To the downside, immediate support is pegged at 2420-2400 followed by 2350.
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