Friday, August 21, 2009

Breaking News-DJN-India may import edible oils to add to its buffer stock

NEW DELHI (Dow Jones)--India will import foodgrains, pulses and edible oil to add to its buffer stock as a prolonged dry spell threatens to shrink supplies, Finance Minister Pranab Mukherjee said Friday.
"It has been decided, whichever commodity will be in short supply, to maintain the demand and supply equilibrium, we shall go for imports," Mukherjee said, adding the current stockpile is adequate to deal with the difficult situation arising from a drought.
India's 246 districts have declared drought so far, Mukherjee added

Breaking News-RTRS-Indonesia to keep Sept palm oil export tax at zero

JAKARTA, Aug 20 (Reuters) - Indonesia will keep its palm oil export tax at zero in September, but raise the crude palm oil (CPO) base export price to $615 a tonne from $574 in August due to a price rise, a trade ministry official said on Thursday.
Indonesia uses the average spot CPO price in Rotterdam, Europe's vegetable oils market, during the preceding month as a reference price to decide palm oil tax rates for the following month.

Trader's Highlight

DJI-NEW YORK, Aug 20 (Reuters) - U.S. stocks rose for a third straight session on Thursday with financial stocks leading gains after U.S. manufacturing data and a rebound in Chinese stocks reassured investors.

The positive manufacturing data from the Federal Reserve Bank of Philadelphia offset the market's disappointment that weekly jobless claims increased for a second week.

The Dow Jones industrial average <.DJI> gained 70.89 points, or 0.76 percent, to end at 9,350.05. The Standard & Poor's 500 Index <.SPX> rose 10.91 points, or 1.09 percent, to finish at 1,007.37. The Nasdaq Composite Index <.IXIC> climbed 19.98 points, or 1.01 percent, to close at 1,989.22.

On Friday, investors will listen to remarks from Federal Reserve Chairman Ben Bernanke, scheduled to speak to a gathering in Jackson Hole, Wyoming, on the lessons learned from the financial crisis and efforts to aid the economic recovery.

NYMEX
-NEW YORK, Aug 20 (Reuters) - U.S. crude oil futures ended slightly higher amid choppy late trading on Thursday, with gains limited as traders closed out positions on the front-month, now-expired September crude contract.

On the New York Mercantile Exchange, September crude expired and settled down 12 cents, or 0.17 percent, at $72.54 a barrel, trading from $71.65 to $72.88. The day's high is the highest since the June 30 peak of $73.38, which was the highest intraday front-month crude oil price since crude hit $75.69 on Oct. 21.

Nymex October crude settled down 92 cents, or 1.25 percent, at $72.91 a barrel, trading from $72.53 to $74.07.

CBOT-SOYBEANS - CBOT September up 2-1/4 cents per bushel at $9.99-1/4. November down 1 at $9.57.

Continued Chinese buying of U.S. soy lending support but good U.S. crop weather and outlooks for a record 2009 U.S. soy crop limiting advances.

CBOT-SOYOIL - CBOT September down 0.31 cent per lb at 35.80. Big supply of soyoil continues to act as an anchor on soyoil futures.

FCPO
-KUALA LUMPUR, Aug 20 (Reuters) - Malaysian crude palm oil futures ended largely unchanged on Thursday as investors felt the previous day's sell-off due to slumping Chinese equity markets was overdone, although fears of a slowdown in exports persisted.

Benchmark November palm oil futures on the Bursa Malaysia Derivatives Exchange rose as much as 51 ringgit to 2,353 ringgit ($667.1) per tonne.

But the most-active contract could not sustain its rebound from a 2-week low of 2,284 ringgit hit in previous session and settled 2 ringgit up at 2,301 ringgit.

REGIONAL EQUITIES-BANGKOK, Aug 20 (Reuters) - Singapore's stock market climbed
more than 1 percent on Thursday, while Malaysia and Indonesia snapped a three-day losing streak as surging crude oil boosted commodity shares like Golden Agri, Kuala Lumpur Kepong and Adro Energy.

Market sentiment in the region was lifted by Chinese shares, which clawed higher after a two-week sell-off, and crude oil, which was steady above $72 a barrel.

Singapore's Straits Times Index <.FTSTI> rose 1.5 percent, with crude palm oil planter Golden Agri-Resources rising 4.3 percent in response to higher Malaysian palm oil futures.

Malaysia <.KLSE> was up 0.7 percent, with plantation firm KL Kepong 2.2 percent higher and IOI Corp up 1.6 percent. Indonesia <.JKSE> jumped 2.2 percent, with Adro Energy surging 6 percent and Bumi Resources up 3.4 percent.

FKLI Daily: Great wall at 1166 levels


Market looks is forming a great wall at 1166 as prices tested three times at 1166 levels yet fail to break through. Thus, immediate technical landscape remains weak. Downside support is remains at 1148.5-1146 followed by 1130-1125. To the upside, resistance is stood at 1166 followed by 1179.5.

DJI Daily: Holding well at above 9000 level


Market is holding ground at above 9000 physiological support level. Hence, market may move in sideways in range trading between 9400-9500 and 9100-9000 levels respectively.

Shanghai Stock EXCHG (SSEC) Daily: Bears took a breathe


Bears took a breathe as market pulled back from the recent sharp drop had slowing down the downward momentum. Nevertheless, overall immediate technical outlook remains clouded in bearish atmosphere. Thus, immediate support is now adjusted to 2761 followed by 2720-2700. To the upside, resistance is stood at 3020-3039 (gap left over on 17/8/2009).

Trader's Comment: Palm oil futures ended marginally higher after a late liquidation.

Palm oil futures ended marginally higher after a late liquidation. Benchmark Nov 09 initially opened RM31 higher at 2330, tracking the strong rally in overnight NYMEX crude oil. However, it then hovered between 2353-2305 level through out most of the sessions as the presence of selling pressure at higher level due to the bearish export figure reported by both private cargo surveyors. ITS & SGS stated a decline of 10.7% and 7% respectively for the period of Aug1-20. The emerged of late intra day liquidation activities saw Benchmark Nov09 eased off further and slide to settle at the intra day low of 2301. External markets were rather mix as Dalian palm edged 1% higher today while both Asian time NYMEX crude oil and eCBOT soy oil had inched lower.

CBOT Soyoil Daily: in tiredness mode


Market was hovering sideways to bias downside potential as overall technical outlook show tiredness mode. Therefore, immediate downside support is pegged at 35.72-35.69 followed by 35.55-35.30. While, upside resistance maintain at 36.61 followed by 37.07-37.22.

NYMEX Crude Daily: Waiting for a breakout


Market continue to hold ground after tested the 1st key resistance at 72.84. Thus, we are waiting to see a potential breakout from the 2nd key resistance at 73.38 which may provide more room to bias upside potential. To the downside, support is pegged at 68.05-66.11.

FCPO Daily: Sideways to lower


Market is likely to move sideways to lower as chart wise remains weak. currently, we continue to look for the upside resistance at 2397-2424 (gap left over n 17/8/2009). Downside support is maintains at 2275-2250 followed by 2225-2200.