Thursday, August 20, 2009

Breaking News-RTRS-MidEast's Ramadan palm oil needs almost covered -trade

KUALA LUMPUR, Aug 19 (Reuters) - Middle Eastern countries have bought 70 percent of an extra 70,000 tonnes of palm oil cargoes needed for the Muslim holy month of fasting that begins in the third week of August, Southeast Asian traders said on Wednesday.
Countries in the region usually buy an additional 150,000 tonnes for the Ramadan fasting observance, where fasting in the day is followed by elaborate feasts at night, but have cut down on orders because of ample port stocks and a recent run-up in prices.

Breaking News-RTRS-China's COFCO plans soy plant in Guangxi -report

BEIJING, Aug 19 (Reuters) - Chinese oilseeds giant COFCO plans to build a soybean crushing plant in south China, adding 20 percent to its capacity in a bid for more of the already crowded edible oils market, the China Daily reported on Wednesday.

Trader's Highlight

DJI-NEW YORK, Aug 19 (Reuters) - U.S. stocks rose on Wednesday, shaking off a slide in China's equity market, as investors responded favorably to a surprising drop in crude oil stockpiles that might suggest an improving demand outlook.

The Dow Jones industrial average <.DJI> gained 61.22 points, or 0.66 percent, to end at 9,279.16. The Standard & Poor's 500 Index <.SPX> rose 6.79 points, or 0.69 percent, to 996.46. The Nasdaq Composite Index <.IXIC> advanced 13.32 points, or 0.68 percent, to 1,969.24.

NYMEX-NEW YORK, Aug 19 (Reuters) - U.S. crude oil futures ended nearly 5 percent higher on Wednesday, rallying on government inventory data that showed an unexpectedly large drawdown in crude stocks last week.

"The (EIA) data is being viewed as bullish as all stock categories fell more than expected," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.

On the New York Mercantile Exchange, September crude settled up $3.23, or 4.67 percent, at $72.42 a barrel, trading from $68.05 to $72.80. The NYMEX September crude contract expires on Thursday.

CBOT-SOYBEANS - CBOT September up 1-1/2 cents at $9.97. Higher crude oil and weak dollar support market but gains limited in spot September and other months weighed down by good crop weather in the U.S.

Mild temperatures and showers buoying soy pod-setting development stage in the U.S. Midwest and in the Delta.

CBOT-SOYOIL
- CBOT September up 0.17 cent per lb at 36.11. Support from gains in crude oil.

FCPO
-KUALA LUMPUR, Aug 19 (Reuters) - Malaysian crude palm oil futures dropped 3.8 percent to a near 2-week low after sharp falls in China's stock markets and on fears exports may fall below expectations, traders said.

Taking a cue from a second steep drop in the Shanghai bourse, benchmark November palm oil futures on the Bursa Malaysia Derivatives Exchange dropped as much as 91 ringgit to 2,284 ringgit ($646.1), a level unseen since Aug. 6. The market then settled at 2,299 ringgit per tonne.

REGIONAL EQUITIES-BANGKOK, Aug 19 (Reuters) - Singapore shares fell to their
lowest in almost four weeks on Wednesday, led by losses in financials and property firms such as UOB and CapitaLand, and other major Southeast Asian bourses also slid on worries about the economic recovery.

Malaysia and Indonesia fell close to three-week lows while Thailand tumbled more than 1 percent. Malaysia <.KLSE> lost 0.8 percent and Indonesia <.JKSE>
dropped 2.5 percent. Earlier they fell to the lowest since July
30.

Losers in the region included palm plantation shares, which fell along with weaker Malaysian crude palm oil futures, with IOI Corp down 1.6 percent and Sime Darby 0.5 percent lower.

Singapore's Wilmar International lost 3.0 percent, Indonesia's Astra Agro fell 5.2 percent and Thailand's Univanich Palm ended 1.3 percent lower.

Trader's Comment: Palm oil futures surrendered yesterday’s gains and tumbled sharply lower on bearish export expectation.

Palm oil futures surrendered yesterday’s gains and tumbled sharply lower on bearish export expectation. Benchmark Nov09 initially opened RM15 higher at 2390, following the strong closed in overnight NYMEX crude oil. However, as regional equity markets continued to slide further, this led palm oil prices to follow suit and fall further through out most of the sessions. The emerged of market talk that Aug1-20 export figure may be around 815k tonnes (ITS reported 913k tonnes in last month same period) had created more fears in CPO market. Benchmark Nov09 broke below 2300 level in late trading and hit intra day low of 2284 before it ended RM76 lower at 2299. Daily volume increased more than doubled the usual level with total 33,290 contracts changed hands.

FKLI Daily: Losing strength to defend


Bull looks losing strength to defend as market tested the physiological support at 1150 in intra-day basis not closing. However, immediate technical landscape remains weak and any significant breakdown again from 1150 may provide more room to bias downside potential. As for now, resistance is adjusted to 1166-1179.5. Downside support is pegged at 1148.5-1146 followed by 1130-1125.

SSE Daily: Extremely bearish


Market has been falling down sharply since 4th Aug, 2009. Overall technical landscape is in bearish mode without any sign of recovery. As for now, immediate support is pegged at 2720-2700 followed by 2668-2635 (gap left over since 1/6/2009). To the upside, resistance is stood at 3020-3039 (gap left over on 17/8/2009).

CBOT Soyoil Daily: Remains in negative mode


Nothing much improvement as market is still searching for support to cushion the downward momentum. We maintain the downside support at 35.55-35.30. While, upside resistance maintain at 37.07-37.22.

NYMEX Crude Daily: Eyeing key resistance at 72.84-73.38


Market rebounded strongly for consecutive two trading days. Violation of the key resistance at 72.84-73.38 may provide more room to bias upside potential. To the downside, support is pegged at 65.23-64.96.

FCPO Daily: Facing resistance at 2397


Market drop sharply violated the 2300 physiological support level after facing tough resistance at 2397.Market looks bearish and may move lower in near term. As for now, we are looking for the upside resistance at 2397-2424 (gap left over n 17/8/2009). Downside support is pegged at 2275-2250 followed by 2225-2200.