Tuesday, August 4, 2009

Breaking News-RTRS-Palm premium over crude to rise on stocks-Fry

KUALA LUMPUR, Aug 4 (Reuters) - An unseasonally low rise in Malaysian palm oil stocks this year will boost the premium of palm over crude oil prices, meaning palm could rise over $800 a tonne by the end the year with Brent crude oil at $70, a top industry analyst said late on Monday.

Trader's Comment: Palm oil futures ended with a triple digit gains on strong external markets.

Palm oil futures ended with a triple digit gains on strong external markets. Benchmark Oct09 immediately jumped RM43 higher to open at 2232 and then surged higher to hover between 2273-2296 level through out most of the sessions before it ended RM106 higher at 2295. The bullish external markets had been fueling the buying sentiment in the local BMD. Asian time NYMEX crude oil traded more than $1 higher led Dalian palm ended more than 200 point higher while eCBOT soy oil also edged higher. Meanwhile, traders were also expecting some fresh news from the upcoming data by USDA which for the first time will forecast the size of 2009 US corn & soybean crops based on actual field surveys, rather than historical yields. On the other hand, well-known industry analyst Mr Dorab Mistry will also deliver its paper by tomorrow.

Trader's Highlight

DJI-NEW YORK, Aug 3 (Reuters) - U.S. stocks rose on Monday, pushing the S&P 500 index above 1,000 for the first time in nine months, as data on the manufacturing sector underscored optimism that the economy was recovering.

The Nasdaq closed above 2,000 for the first time since early October in an extension of the stock market's recent rally, which has been fueled by stronger-than-expected
earnings and data suggesting the recession may be abating. On Friday, the S&P 500 wrapped up its best five-month streak since 1938.

The Dow Jones industrial average <.DJI> shot up 114.95 points, or 1.25 percent, to 9,286.56. The Standard & Poor's 500 Index <.SPX> climbed 15.15 points, or 1.53 percent, to 1,002.63. The Nasdaq Composite Index <.IXIC> advanced 30.11 points, or 1.52 percent, to 2,008.61. The S&P 500 is now up 48 percent since hitting a 12-year
closing low on March 9.

NYMEX-NEW YORK, Aug 3 (Reuters) - U.S. crude futures ended more than 3 percent higher on Monday on growing economic recovery optimism after Wall Street rose on data showing the manufacturing sector in the United States shrank at a slower pace in July.

On the New York Mercantile Exchange, September crude settled up $2.13, or 3.07 percent, at $71.58 a barrel, the highest settlement for front-month crude since June 12's $72.04.

It traded from $69.09 to $72.20, the highest since the June 30 high of $73.38, which was a 2009 peak and the highest intraday front-month price since crude hit $75.69 on Oct. 21.

CBOT-SOYBEANS
- August up 39-1/2 cents at $11.73-1/2. November up 48-1/2 at $10.30-1/2. Shrinking stocks of soy, falling dollar, gains in equities and crude oil combine to lift soybean futures.

CBOT-SOYOIL - August up 2.48 cents per lb at 37.54. Spillover support from soaring soybeans, gains in crude oil as the dollar falls.

FCPO-KUALA LUMPUR, Aug 3 (Reuters) - Malaysian crude palm oil futures jumped as much as 4.9 percent on Monday to five-week highs as tight global vegetable oil stocks and strengthening Asian festival demand drew in investors.

Renewed interest in palm oil was helped by surging global soyoil markets. China's hunger for U.S. soybeans, which put U.S. stocks at a projected 32-year low of 110 million bushels by end-August, brought in speculative funds, traders said.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange hit a session high of 2,296 ringgit, a level unseen since June 26, and then settled at 2,295 ringgit ($653.8).

REGIONAL EQUITIES-BANGKOK, Aug 3 (Reuters) - Thai shares rose to an 11-month
high on Monday and most other Southeast Asian stock markets moved higher as the improving economic outlook bolstered buying interest in sectors such as cement and property.

Singapore's index <.FTSTI> ended up 0.8 percent, led by a 6.6 percent rise in container-shipping firm Neptune Orient Lines and a 3.8 percent rise in palm plantation firm Wilmar International .

Bucking the trend, Malaysia's index <.KLSE> lost 0.3 percent, with Bumiputra Commerce falling 1.3 percent and Sime Darby sliding 0.2 percent.

NYMEX CRUDE Daily: Gaining ground


Market has been cushioned well at USD 62 and managed to violate the overhead resistance at 68.99. Thus, market may want to challenge the upside resistance at 73.38 in near term.

DJI Daily: may continue to march higher


Market has been holding well at above 9000 mark and looks may continue to march higher in near term. Upside is projected at 9600-9800. While, downside support is pegged at 8900-9000.

KLSE Daily: remains firmly bullish


Market remains firmly bullish and may challenge upside at 1190-1200 in near term. Downside support is stood at 1160.

FKLI Daily: continue to target 1200


Bulls still continue the battle and looks is likely to challenge 1200 mark in near term. To the downside, support is pegged at 1160-1150.

FCPO Daily: More upside room


Market violated 2180-2200 to surge higher. This had provided more room to bias upside potential. Currently, we are looking for the upside resistance at 2350. To the downside, support is pegged at 2175-2155 (gap left over on 31/7/2009).