Friday, February 6, 2009
Trader's Comment: CPO futures ended mix after it surrendered some of its earlier gains amid pre-weekend covering.
CPO futures ended mix after it surrendered some of its earlier gains amid pre-weekend covering. Profit taking activities immediately took place as Benchmark Apr09 slid down till intra day low of 1854 before morning session closed, after it opened at intra day high of 1908 following overnight CBOT soy oil and NYMEX crude oil rallied higher. It then hovered between 1892-1862 level through out the second session before finally settled almost unchanged at 1880. eCBOT soy complex and Dalian palm had traded higher during Asian time trading, providing some support to our local CPO prices. Generally, traders were still cautious ahead of long weekend even though overall volume increased.
Breaking News-(BN) Malaysia May Take ‘Radical’ Steps to Boost Economy, Bernama
By Angus Whitley
Feb. 6 (Bloomberg) -- Malaysian Finance Minister Najib Razak said he’s prepared to implement “radical” measures to stimulate the economy, state news service Bernama reported late yesterday.
The government’s second stimulus plan, to be announced soon, will be be much bigger than November’s 7 billion-ringgit
($1.9 billion) package, Bernama reported, citing Najib, who is also Malaysia’s deputy prime minister.
Feb. 6 (Bloomberg) -- Malaysian Finance Minister Najib Razak said he’s prepared to implement “radical” measures to stimulate the economy, state news service Bernama reported late yesterday.
The government’s second stimulus plan, to be announced soon, will be be much bigger than November’s 7 billion-ringgit
($1.9 billion) package, Bernama reported, citing Najib, who is also Malaysia’s deputy prime minister.
Breaking News-RTRS-China declares emergency as drought bites
BEIJING, Feb 5 (Reuters) - China has declared an emergency over a long dry spell threatening crops and farmers' incomes in the rural heartland, official media said on Thursday.
The drought gripping parts of central and northern China has sent Zhengzhou wheat futures prices up 5 percent this week but physical prices have not moved, with most investors confident the country's reserves and last year's big harvest can offset any fall in wheat production this spring.
The drought gripping parts of central and northern China has sent Zhengzhou wheat futures prices
Breaking News-RTRS-UPDATE 1-Argentina 08/09 soy crop 42.5 mln T - USDA attache
WASHINGTON, Feb 4 (Reuters) - Argentina's soybean
production for 2008/09 was cut to 42.5 million tonnes as a
result of a smaller harvested area and a drop in yield due to
severe drought, according to a U.S. Agriculture Department
attache report released on Wednesday.
production for 2008/09 was cut to 42.5 million tonnes as a
result of a smaller harvested area and a drop in yield due to
severe drought, according to a U.S. Agriculture Department
attache report released on Wednesday.
Breaking News-RTRS-US soy oil stocks 2.660 bln lbs in Dec - Census
WASHINGTON, Feb 5 (Reuters) - U.S. soybean oil stocks
totaled 2.660 billion lbs in December, compared to 2.535
billion lbs in November, the U.S. Census Bureau said on
Thursday.
The data were released as part of the Census Bureau's
monthly Fats & Oils Production and Stocks report.
totaled 2.660 billion lbs in December, compared to 2.535
billion lbs in November, the U.S. Census Bureau said on
Thursday.
The data were released as part of the Census Bureau's
monthly Fats & Oils Production and Stocks report.
Breaking News-RTRS-UPDATE 1-Malaysia 2nd economic stimulus to come by March-source
KUALA LUMPUR, Feb 5 (Reuters) - Malaysia is set to introduce a second round of spending in February or March and it will be far more wide-ranging than the first fiscal boost announced last November, a source familiar with government thinking said.
The Malaysian government, which is forecasting economic growth of 3.5 percent this year, will also revise its forecasts in the light of weaker exports, lower commodity prices and an expected fall in foreign investment, the source said.
The Malaysian government, which is forecasting economic growth of 3.5 percent this year, will also revise its forecasts in the light of weaker exports, lower commodity prices and an expected fall in foreign investment, the source said.
Trader's Highlight
DJI-NEW YORK, Feb 5 (Reuters) - U.S. stocks rallied on Thursday on investor hopes that the government's plan to shore up the financial system will include a change in accounting rules that would stem bank write-downs and spur lending.
The Dow Jones industrial average <.DJI> rose 106.41 points, or 1.34 percent, to 8,063.07. The Standard & Poor's 500 Index <.SPX> gained 13.62 points, or 1.64 percent, to 845.85. The Nasdaq Composite Index <.IXIC> climbed 31.19 points, or 2.06
percent, to 1,546.24.
A day before the release of the January non-farm payrolls report, investor sentiment got a boost from talk that Washington would suspend an accounting requirement on the
recognition of losses that has resulted in billions of write-downs for banks.
The Obama administration is due to announce its bank rescue plan next week.
There was also encouraging news on the earnings front on Thursday.
NYMEX-NEW YORK, Feb 5 (Reuters) - U.S. crude oil futures rose on Thursday lifted by a stock market rally and expectations that demand may start to rebound as OPEC cuts start to hit supplies.
On the New York Mercantile Exchange, March crude rose 85 cents, or 2.11 percent, to settle at $41.17 a barrel, after trading from $39.46 to $41.25.
April crude rose $1.52 to settle at $45.76, putting the premium to March at more than $4. May crude rose $1.70 to settle at $48.38 a barrel.
CBOT-SOYBEANS - March up 30-1/2 cents at $9.80 a bushel.
Forecasts for drier weather in Argentina, signs China was buying soy and tight stocks boost market. Also supported by U.S. ag attache trimming estimate for Argentine soy production and Brazil's government agency Conab reducing forecast for Brazil soy crop.
Argentine crop conditions slowly improve after rains. Mostly favorable weather in Brazil but moisture requirement for crops quite high at this time.
Conab, Brazil's government Crop Supply Agency, pegs Brazil's soy crop 57.2 million tonnes, down from its January estimate for 57.8 million and below USDA's January outlook for 59.0 million.
CBOT-SOYOIL - March up 0.70 cent at 33.05 cents a pound. Following strength in soybean market.
FCPO-KUALA LUMPUR, Feb 5 (Reuters) - Malaysian crude palm futures ticked up 1.8 percent on Thursday to hit a new one-week high on signs of a rundown in domestic inventories although sentiment was dampened by slow shipments, dealers said.
The benchmark April contract on the Bursa Malaysia Derivatives gain 34 ringgit to 1,879 ringgit ($510.5), a level unseen since Jan. 22.
REGIONAL EQUITIES-BANGKOK, Feb 5 (Reuters) - Most Southeast Asian stock markets
rose on Thursday, with optimism over government policy bolstering buying of Malaysian big caps such as Maybank and earnings in Thailand inducing buying in shippers such as Precious Shipping.
But in Singapore the main index <.FTSTI> erased early gains to fall 0.2 percent, with banks sliding amid domestic economic worries.
Singapore's finance minister said he expected the economic downturn to worsen, after the country fell into recession last year.
The Dow Jones industrial average <.DJI> rose 106.41 points, or 1.34 percent, to 8,063.07. The Standard & Poor's 500 Index <.SPX> gained 13.62 points, or 1.64 percent, to 845.85. The Nasdaq Composite Index <.IXIC> climbed 31.19 points, or 2.06
percent, to 1,546.24.
A day before the release of the January non-farm payrolls report, investor sentiment got a boost from talk that Washington would suspend an accounting requirement on the
recognition of losses that has resulted in billions of write-downs for banks.
The Obama administration is due to announce its bank rescue plan next week.
There was also encouraging news on the earnings front on Thursday.
NYMEX-NEW YORK, Feb 5 (Reuters) - U.S. crude oil futures rose on Thursday lifted by a stock market rally and expectations that demand may start to rebound as OPEC cuts start to hit supplies.
On the New York Mercantile Exchange, March crude
April crude
CBOT-SOYBEANS - March
Forecasts for drier weather in Argentina, signs China was buying soy and tight stocks boost market. Also supported by U.S. ag attache trimming estimate for Argentine soy production and Brazil's government agency Conab reducing forecast for Brazil soy crop.
Argentine crop conditions slowly improve after rains. Mostly favorable weather in Brazil but moisture requirement for crops quite high at this time.
Conab, Brazil's government Crop Supply Agency, pegs Brazil's soy crop 57.2 million tonnes, down from its January estimate for 57.8 million and below USDA's January outlook for 59.0 million.
CBOT-SOYOIL - March
FCPO-KUALA LUMPUR, Feb 5 (Reuters) - Malaysian crude palm futures ticked up 1.8 percent on Thursday to hit a new one-week high on signs of a rundown in domestic inventories although sentiment was dampened by slow shipments, dealers said.
The benchmark April contract
REGIONAL EQUITIES-BANGKOK, Feb 5 (Reuters) - Most Southeast Asian stock markets
rose on Thursday, with optimism over government policy bolstering buying of Malaysian big caps such as Maybank and earnings in Thailand inducing buying in shippers such as Precious Shipping.
But in Singapore the main index <.FTSTI> erased early gains to fall 0.2 percent, with banks sliding amid domestic economic worries.
Singapore's finance minister said he expected the economic downturn to worsen, after the country fell into recession last year.
DJI Daily: Hovering .....
Market was hovering around 7900-8000 mark and struggle for surviving. We maintain the resistance and support at 8300-8400 and 7449 level respectively.
KLSE Daily: Remains same posture
Market likely to move in sideways for near term market. We maintain the upside resistance at 888-889 (gap left over on 20/1/2009). Downside support is at 868-867.
FKLI Daily: Sideways.......
Market looks firm as prices manage to recover to close in positive territory. However, more strength is needed to draw a more clearer picture. Thus, consolidation phase remains taking place. Currently, we continue to look for the upside resistance at 880-890 Downside support is pegged at 858 followed by 845-840.
FCPO Daily: Eyeing upside gap at 1913-1935
Market violated the support at 1870-1880 and close higher for consecutive four trading day. Market looks may want to challenge the upside gap left over on 13/1/2009 at 1913-1935. While, downside support remains at 1798-1790 (gap left over on 4/2/2009) followed by 1720.
Thursday, February 5, 2009
Trader's Comment: Palm oil extended its gains for the 3rd consecutive days.
Palm oil extended its gains for the 3rd consecutive days. Benchmark Apr09 opened RM8 lower at 1837 and hit intra day low at 1812, following overnight NYMEX crude oil ended slightly lower. Nevertheless, it was well supported and bounced back thereafter to begin its rally through out the day. eCBOT soy oil continued its overnight gains and edged higher during Asian time trading. This had helped lifted the market sentiment in our local CPO prices. Benchmark Apr09 rallied to the intra day high of 1880 in the second session before it settled RM34 higher at 1879. While MPOB will release its January supply and demand data on next Wednesday, Reuters poll had reported that January palm oil stocks might decline by 6%.
Breaking News-RTRS-POLL-Malaysia's Jan palm stocks seen at 5-month low
RTRS-MALAYSIA'S END-JAN PALM OIL STOCKS SEEN DOWN 6.1 PCT FROM DEC AT 1.87 MLN TONNES -REUTERS POLL
RTRS-MALAYSIA'S JAN PALM OIL OUTPUT SEEN DOWN 8.3 PCT FROM DEC - POLL
RTRS-MALAYSIA'S JAN PALM OIL EXPORTS SEEN DOWN 21.2 PCT FROM DEC - POLL
RTRS-MALAYSIA'S JAN PALM OIL OUTPUT SEEN DOWN 8.3 PCT FROM DEC - POLL
RTRS-MALAYSIA'S JAN PALM OIL EXPORTS SEEN DOWN 21.2 PCT FROM DEC - POLL
Breaking News-(BN) Vegetable Oil Demand to Rise This Year on Price Drop, HGCA Says
By Rudy Ruitenberg
Feb. 4 (Bloomberg) -- Global demand for vegetable oils will rise this season as increased production curbs prices, the U.K.’s Home-Grown Cereals Authority said.
Palm-oil stocks are expected to increase 500,000 metric tons at the end of the crop year, while stocks of rapeseed and sunflower oil are likely to be “large” following record harvests, the organization said in a report on its Web site.
Lower prices are boosting consumption, while “very low”
palm oil prices and high stock levels are likely to buoy biodiesel production in Asia, the HGCA said. Population growth will also lift demand, the group said.
“Cheaper prices, better supply seem to outweigh the recession when it comes to demand,” HGCA said. “The very large palm oil stocks are one of the main reasons why vegetable oil prices have fallen so sharply.”
The outlook for soy-oil stocks is less clear after Argentina, the world’s largest exporter of the vegetable oil, suffered the worst drought in 60 years, the organization said.
Concern about supplies has supported soy-oil prices, HGCA said.
Rapeseed oil continues to trade at a premium to palm oil because of demand from the European Union biodiesel industry, even as the world rapeseed crop was “much larger this season,”
the organization said.
Feb. 4 (Bloomberg) -- Global demand for vegetable oils will rise this season as increased production curbs prices, the U.K.’s Home-Grown Cereals Authority said.
Palm-oil stocks are expected to increase 500,000 metric tons at the end of the crop year, while stocks of rapeseed and sunflower oil are likely to be “large” following record harvests, the organization said in a report on its Web site.
Lower prices are boosting consumption, while “very low”
palm oil prices and high stock levels are likely to buoy biodiesel production in Asia, the HGCA said. Population growth will also lift demand, the group said.
“Cheaper prices, better supply seem to outweigh the recession when it comes to demand,” HGCA said. “The very large palm oil stocks are one of the main reasons why vegetable oil prices have fallen so sharply.”
The outlook for soy-oil stocks is less clear after Argentina, the world’s largest exporter of the vegetable oil, suffered the worst drought in 60 years, the organization said.
Concern about supplies has supported soy-oil prices, HGCA said.
Rapeseed oil continues to trade at a premium to palm oil because of demand from the European Union biodiesel industry, even as the world rapeseed crop was “much larger this season,”
the organization said.
Breaking News-(BN) IOI Properties Gets Cash-Stock Takeover Offer From Parent IOI
By Luzi Ann Javier
Feb. 4 (Bloomberg) -- IOI Corp., Malaysia’s second-biggest publicly traded planter, offered to buy all of the 199.7 million shares it didn’t already own in IOI Properties Bhd. for about
519 million ringgit ($143 million.)
IOI Corp., which owns about 74 percent of the developer’s total shares, will offer 2.598 ringgit per share for the remaining stock, comprising 0.6 IOI share and 33 sen in cash, according to a statement today from IOI Properties.
Feb. 4 (Bloomberg) -- IOI Corp., Malaysia’s second-biggest publicly traded planter, offered to buy all of the 199.7 million shares it didn’t already own in IOI Properties Bhd. for about
519 million ringgit ($143 million.)
IOI Corp., which owns about 74 percent of the developer’s total shares, will offer 2.598 ringgit per share for the remaining stock, comprising 0.6 IOI share and 33 sen in cash, according to a statement today from IOI Properties.
Breaking News-(BN) KPMG Says 5,000 U.K. Companies May File for Bankruptcy in 2009
By Poppy Trowbridge
Feb. 5 (Bloomberg) -- As many as 5,000 U.K. companies may file for bankruptcy this year as the economy worsens, according to a report by accounting and insolvency firm KPMG.
The number of firms that enter administration or receivership may jump 55 percent from 3,225 in 2008, KPMG said in a statement.
Consumer goods companies will suffer more than other industries as buyer confidence remains “at a low ebb.” Retail insolvency appointments soared in January, rising fourfold compared with the same period in 2008.
Feb. 5 (Bloomberg) -- As many as 5,000 U.K. companies may file for bankruptcy this year as the economy worsens, according to a report by accounting and insolvency firm KPMG.
The number of firms that enter administration or receivership may jump 55 percent from 3,225 in 2008, KPMG said in a statement.
Consumer goods companies will suffer more than other industries as buyer confidence remains “at a low ebb.” Retail insolvency appointments soared in January, rising fourfold compared with the same period in 2008.
Trader's Highlight
DJI - NEW YORK, Feb 4 - U.S. stocks fell on Wednesday as a glum profit forecast from Kraft Foods signaled consumers are skimping even on the basics and investors worried that government efforts to rescue banks could wipe out their shareholders.
Even so, a report showing that the vast service sector shrank less than expected in January spurred technology gains, helping the Nasdaq finish near break-even.
But that was before Cisco Systems Inc , the network equipment maker that is a tech bellwether, forecast a slide of as much as 20 percent in its current quarter revenue, hitting other tech shares after the bell.
The Dow Jones industrial average fell 121.70 points, or 1.51 percent, to 7,956.66. The Standard & Poor's 500 Index shed 6.28 points, or 0.75 percent, to 832.23. The Nasdaq Composite Index dipped 1.25 points, or 0.08 percent, to 1,515.05.
NYMEX - NEW YORK, Feb 4 - U.S. crude oil futures fell back late on Wednesday as traders conceded that the large crude supply increase at the NYMEX delivery hub in Oklahoma, part of the big inventory build last week, was too bearish for the market to ignore.
But despite the retreat, which came as Wall Street pared earlier gains, crude futures still ended above $40, inching up from the day's lows.
On the New York Mercantile Exchange, March crude settled down 46 cents, or 0.46 percent, at $40.32 a barrel, trading from $39.74 to $41.92.
CBOT - SOYBEANS - March up 3-1/2 cents to $9.49-1/2 a bushel. Pares gains and deferred months fell as traders locked in profits following an early strong technical bounce and on forecasts for wetter weather in Argentina. Pullback in crude oil and equity markets also weighed on market.
CBOT - SOYOIL - March up 0.82 cent at 32.35 cents a pound. Supported by crude oil and gains in nearby soy.
FCPO - KUALA LUMPUR, Feb 4 - Malaysian crude palm futures ended up 3.2 percent on Wednesday but came off week highs.
Some investors bought on advancing crude and equity markets and expectations of a sharp decline in domestic inventories also pushed the market higher, traders said.
The benchmark April contract settled up 57 ringgit to 1,845 ringgit ($509.7), after going as high as 1,852 ringgit, a level unseen since Jan. 23.
REGIONAL EQUITIES - BANGKOK, Feb 4 - Southeast Asian stocks were mixed on Wednesday, with Singapore and Malaysia erasing early gains to end lower on selling of big caps such as Singapore Telecom and lender Bumiputra-Commerce.
Singapore's benchmark index shed 0.26 percent, with top telecom firm Singapore Telecommunications down 1.6 percent. Malaysian shares fell for a second day, down 0.33 percent, with Bumiputra-Commerce off 2.3 percent.
Thai shares rose 0.6 percent, while the Indonesian market advanced 1.2 percent and the Philippine index climbed 1.2 percent. Vietnam fell for a third day,
down 0.9 percent at a near 2-month low.
Even so, a report showing that the vast service sector shrank less than expected in January spurred technology gains, helping the Nasdaq finish near break-even.
But that was before Cisco Systems Inc , the network equipment maker that is a tech bellwether, forecast a slide of as much as 20 percent in its current quarter revenue, hitting other tech shares after the bell.
The Dow Jones industrial average fell 121.70 points, or 1.51 percent, to 7,956.66. The Standard & Poor's 500 Index shed 6.28 points, or 0.75 percent, to 832.23. The Nasdaq Composite Index dipped 1.25 points, or 0.08 percent, to 1,515.05.
NYMEX - NEW YORK, Feb 4 - U.S. crude oil futures fell back late on Wednesday as traders conceded that the large crude supply increase at the NYMEX delivery hub in Oklahoma, part of the big inventory build last week, was too bearish for the market to ignore.
But despite the retreat, which came as Wall Street pared earlier gains, crude futures still ended above $40, inching up from the day's lows.
On the New York Mercantile Exchange, March crude settled down 46 cents, or 0.46 percent, at $40.32 a barrel, trading from $39.74 to $41.92.
CBOT - SOYBEANS - March up 3-1/2 cents to $9.49-1/2 a bushel. Pares gains and deferred months fell as traders locked in profits following an early strong technical bounce and on forecasts for wetter weather in Argentina. Pullback in crude oil and equity markets also weighed on market.
CBOT - SOYOIL - March up 0.82 cent at 32.35 cents a pound. Supported by crude oil and gains in nearby soy.
FCPO - KUALA LUMPUR, Feb 4 - Malaysian crude palm futures ended up 3.2 percent on Wednesday but came off week highs.
Some investors bought on advancing crude and equity markets and expectations of a sharp decline in domestic inventories also pushed the market higher, traders said.
The benchmark April contract settled up 57 ringgit to 1,845 ringgit ($509.7), after going as high as 1,852 ringgit, a level unseen since Jan. 23.
REGIONAL EQUITIES - BANGKOK, Feb 4 - Southeast Asian stocks were mixed on Wednesday, with Singapore and Malaysia erasing early gains to end lower on selling of big caps such as Singapore Telecom and lender Bumiputra-Commerce.
Singapore's benchmark index shed 0.26 percent, with top telecom firm Singapore Telecommunications down 1.6 percent. Malaysian shares fell for a second day, down 0.33 percent, with Bumiputra-Commerce off 2.3 percent.
Thai shares rose 0.6 percent, while the Indonesian market advanced 1.2 percent and the Philippine index climbed 1.2 percent. Vietnam fell for a third day,
down 0.9 percent at a near 2-month low.
KLSE Daily: Nothing much change
Market remains its same posture to move in sideways. We maintain the upside resistance at 888-889 (gap left over on 20/1/2009). Downside support is at 868-867.
FKLI Daily: Remains sideways
Market stayed firm with its sideways posture. Consolidation phase looks may continue in near term. As for now, we look for the upside resistance at 880-890 Downside support is pegged at 858 followed by 845-840.
Subscribe to:
Posts (Atom)
