FCPO Related News (Fri, May 17)

Crude palm oil futures on Malaysia’s derivatives exchange end up as investors bought at lower levels following recent declines. Market chatter about improving export demand in the second half of this month provided underlying support to the market as well, an exporter in Pasir Gudang says. A rebound in exports in May could help ease stocks in Malaysia to 1.80 million tons at end-May from 1.93 million tons last month, the exporter adds and tips Friday’s trade in a MYR2,300-MYR2,360/ton band. New benchmark August CPO ends up 0.7% at MYR2,314/ton. CBOT July soyoil is up 0.2% at 49.43 cents/lb in screen trade.           [Dow Jones Newswire]

Malaysian palm oil futures rose on Thursday as buyers returned after three straight sessions of losses, and investor sentiment brightened for exports to recover in the second half of May. Shipments of palm oil fell between 3 percent and 8 percent over May 1 to 15 from the corresponding April period, fanning concerns that demand for the tropical oil is slowing, but traders said the decline was smaller than expected and exports could pick up in the coming weeks.

Traders also expect output in Malaysia, the world's second-largest producer, to slow this month and to help further ease stocks that have dipped below the psychological 2-million-tonne mark to 1.93 million tonnes in April. "There are buyers coming in to support the market, which can be seen from the increased trading volumes," said a trader with a foreign commodities brokerage in Kuala Lumpur.  "I've also been hearing that production this month is not as good as expected. It looks like end-stocks could dip further, and May's stocks could be the lowest in the whole year," the trader added.

By Thursday's close, the benchmark August contract on the Bursa Malaysia Derivatives Exchange had risen 0.7 percent to 2,314 ringgit ($768) per tonne. Prices traded in a range between 2,292 and 2,324 ringgit. Total traded volumes stood at 44,002 lots of 25 tonnes each, higher than the usual 35,000 lots. Malaysia announced on Wednesday it would set its crude palm oil export tax for June at 4.5 percent, unchanged since March. Top producer and biggest rival Indonesia is to set June taxes at the end of the month. In vegetable oil markets, U.S. soyoil for July delivery rose 0.2 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange rose 0.1 percent.           [Reuters]

Today’s Support and Resistance for benchmark FCPO August contract is located around 2,300 and 2,350 respectively.

FKLI Related News (Fri, May 17)

United States (US) stocks fell on Thursday, with the downturn accelerating late in the day after a Federal Reserve official said the central bank could begin easing up on its monetary stimulus this summer. The three major US stock indexes had earlier traded in a tight range, supported by a gain of more than 12 per cent in Cisco Systems shares and as investors took in a batch of economic data that pointed to slower growth.

U.S. stock index futures were little changed on Thursday following four days of losses on the S&P 500, with trading once more expected to be dictated by developments in Europe. Greek politicians rejecting the conditions for a bailout that is keeping the country's finances afloat are likely to win next month's elections, and the political turmoil has sent riskier assets sharply lower over the past weeks.  Spain's medium-term borrowing costs rose sharply in a Thursday auction of 3- and 4- year bonds, reflecting concerns over the Spanish banking system and economy. Giving investors some respite Japan's economy grew 1.0 percent in the first quarter, slightly more than expected, and a 0.2 percent contraction reported in the world's third-largest economy for the final three months of 2011 was revised up to flat.

The U.S. data calendar includes the release of first-time weekly claims for jobless benefits at 8:30 a.m. (1230 GMT). Economists in a Reuters survey forecast a total of 365,000 new filings compared with 367,000 in the prior week. S&P 500 futures edged up 0.4 point and were slightly above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 1 point, and Nasdaq 100 futures shed 3 points. The pan-European FTSEurofirst 300 index fell 0.8 percent after hitting a fresh 2012 low. A gauge of European bank stocks dropped 2.3 percent.          [Reuters]

Stocks on Bursa Malaysia ended broadly lower yesterday due to selling pressure, while regional bourses traded mixed, as investor excitement on Japan's better economic growth data was partly dampened by the country's softer capital expenditure data which fell 0.7 percent, in the fifth straight quarter of decline. The FBM KLCI which notched new historic highs on Monday and Tuesday, ended at 1,766.72, sliding 16.31 points or 0.91%, weighed down by losses in major blue-chips. 

FKLI spot month contract opened slightly higher this morning at 1,766 following Japan’s positive economic growth. Today’s Support and Resistance for FKLI May contract is located around 1,750 and 1,775 respectively.

FCPO Related News (Tues, May 7)

KUALA LUMPUR, May 6 (Reuters) - Malaysian palm oil futures slipped to nearly a 5-month low on Monday, weighed down as the ringgit surged against the dollar following the ruling coalition's win in the country's general elections. The Malaysian ringgit rose on Monday to its highest since September 2011 after the governing National Front coalition extended its 56-year rule, seeing off a strong challenge by an opposition alliance that had unnerved investors because of the potential for political instability.

   

The stronger ringgit made the palm oil feedstock more expensive for overseas buyers and lowered refiners' margins,keeping some investors on the sidelines. "The ringgit is strong today, but the stock index is also strong, so the palm oil market is only slightly down. We are still seeing some rangebound trading today," said a trader with a foreign commodities brokerage in Kuala Lumpur. Investors also avoided taking risks as they waited for official data on Malaysia's April palm oil stocks and output levels, due on Friday.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange edged down 0.1 percent to close at 2,250 ringgit ($756) per tonne. Prices earlier fell as low as 2,230 ringgit, a level last seen on Dec. 13. Total traded volumes were thin at 22,837 lots of 25 tonnes each, compared to the average 35,000 lots. Technicals showed a bearish target at 2,160 ringgit has been established, as a downtrend from the March 25 high of 2,505 ringgit has resumed, said Reuters market analyst Wang Tao.

Market participants are hoping that the next report on palm oil stocks supports prices, which have lost 7.7 percent so far this year. However, easing exports have raised concern that inventory levels may have fallen only marginally in April and held above 2 million tonnes. Palm oil stocks in Malaysia, the world's second largest producer, fell almost 11 percent to 2.17 million tonnes in March from February's 2.43 million tonnes.

   

In other markets, Brent oil rose above $105 a barrel on Monday to its highest in nearly a month as an Israeli air strike on a Syrian military facility refocused attention on Middle East supply risks, although prices pared gains after weak European economic data. In vegetable oil markets, the U.S. soyoil for July delivery gained 0.6 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange rose 1.9 percent.       

Today’s Support and Resistance for benchmark July contract is located around 2,230 and 2,280 respectively.

FKLI Related News (Tues, May 7)

NEW YORK, May 6 (Reuters) - U.S. stocks were little changed on Monday, pausing after a rally that pushed the Dow and S&P 500 to record highs last week on improving earnings and reassuring signs about the economy. Apple shares were among the top gainers, up 2 percent at $458.65 and giving the biggest boosts to the Nasdaq composite index and benchmark S&P. Market watchers said there is more room for stocks to rise as investors use weakness in the market as an opportunity to add to positions.

Although weak economic data from the euro zone and China has caused concerns over the global growth outlook, Friday's stronger-than-expected U.S. payrolls report fueled the gains that took the indexes to record levels. Equities have been strong so far this year, with the S&P 500 up more than 13 percent in 2013 on the back of strong corporate earnings and accommodating monetary policies that have kept interest rates low. The Dow Jones industrial average was down 26.54 points, or 0.18 percent, at 14,947.42. The Standard & Poor's 500 Index was up 0.46 point, or 0.03 percent, at 1,614.88. The Nasdaq Composite Index was up 6.21 points, or 0.18 percent, at 3,384.85.

Stocks on Bursa Malaysia closed higher across the board yesterday after the ruling Barisan Nasional retained power in the 13th General Election held on Sunday. The FBM KLCI also hit an all-time intra-day high of 1,826.22, boosted by a buying spree in heavyweight counters. The key index closed at a historic high of 1,752.02 points yesterday, up 57.25 points or 3.38% from last Friday's close after hovering between 1,743.14 and 1,826.22. Gainers led losers by 870 to 83 with 132 counters remained unchanged. Total volume almost doubled to 1.911 billion shares worth RM4.993 billion from Friday's 933.243 million shares worth RM2.315 billion.

Today’s Support and Resistance for FKLI May contract is located around 1,750 and 1,780 respectively.

FCPO Related News (Mon, May 6)

Malaysian palm oil futures slipped to a near 5-month low on Friday, posting a weekly loss of 2.7 percent, with many investors exiting the market as the country heads into polls. The Malaysian benchmark stock index lost more than a tenth on its first trading day after the country's last elections in 2008.  A weaker ringgit will be good for palm oil, but a weaker stock index is bad. Investors also avoided taking risks as they waited for further trading clues from official data on palm stocks and output levels due next week.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange fell 0.3 percent to close at 2,254 ringgit ($743) per tonne. Prices earlier fell to 2,243 ringgit, a level last seen on Dec. 14. Total traded volumes stood at 28,510 lots of 25 tonnes each, slightly below the average 35,000 lots. Cargo surveyor data on Tuesday showed April's palm oil exports fell between 4.3 percent and 5.6 percent on the month, on waning Chinese demand, stoking concern that prices, already down around 7.5 percent this year, could tumble further. Affin Investment Bank on Friday cut its average selling price forecast for crude palm oil in 2013 to 2,600 ringgit per tonne from 2,800 ringgit, citing a sluggish outlook due to "uneven global growth, high palm oil stocks, the outbreak of the H7N9 virus in China, and a likely delay in the implementation of biodiesel policy".

In other markets, Brent crude eased slightly lower below $103 a barrel on Friday, but held most of its gains from the previous session, as investors awaited U.S. jobs figures that may show the economy is quickening in the world's top oil consumer. In vegetable oil markets, the U.S. soyoil for July delivery rose 0.6 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange gained 0.9 percent.           [Reuters]

FCPO benchmark July contract opened slightly higher this morning at 2,263. Today’s Support and Resistance for benchmark July contract is located around 2,230 and 2,280 respectively.

FKLI Related News (Mon, May 6)

NEW YORK, May 3 (Reuters) - The S&P 500 and Dow industrials hit intraday record highs on Friday and the benchmark S&P traded above 1,600 after U.S. employment rose more than expected in April. In addition, hiring was much stronger than previously thought in the prior two months, the Labor Department said, easing concerns that government spending cuts were dealing a blow to the economy. The Dow Jones industrial average rose 135.27 points or 0.91 percent, to 14,966.85, the S&P 500 gained 16.01 points or 1 percent, to 1,613.6 and the Nasdaq Composite  added 34.62 points or 1.04 percent, to 3,375.25.

The report eased investor concerns after a raft of soft data, particularly in the manufacturing sector, and sent the S&P 500 hurtling past what was viewed as its final resistance level of 1,600 to a fresh all-time closing high of 1,614.42. With little in the way of economic data on tap next week and earnings season moving into the home stretch, there appears to be little that could derail a move higher. But revenue remains disappointing, with only 46.3 percent of S&P 500 companies topping Wall Street expectations, well below the 62 percent beat rate since 2002 and shy of the 52 percent average for the past four quarters.

KUALA LUMPUR, May 6 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) opened at an all-time high of 1,771.6, up 76.85 points on strong buying interest after the ruling party maintained power in the just-concluded general election. The previous high of 1,718.44 points was registered on April 30. At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rocketed 121.5 points to 1,816.27 points with 362 gainers, 12 losers, 32 unchanged and 1,205 counters untraded including 32 others that are suspended. Turnover stood at 120.59 million shares worth RM335.44 million.

HwangDBS Vickers said with the incumbent Barisan Nasional coalition returning to federal power after the 13th General Election, the removal of a political overhang could spark a relief rally on the Malaysian stock exchange today. "The benchmark FBM KLCI may be on its way to plot fresh all-time highs," it said in a research note Monday. Among actives, CIMB added 99 sen to RM8.60, UEM Land garnered 41 sen to RM3.05, Astro gained nine sen to RM3.04, Tebrau Teguh earned 15 sen to RM1.39 and SapuraKencana chalked up 32 sen to RM3.37. Heavyweights, Maybank added 59 sen to RM10.18, Axiata gained 64 sen to RM7.24, Sime Darby earned 45 sen to RM 9.81, Petronas Chemicals added 31 sen to RM6.79 and Tenaga rose 36 sen to RM8.14.

FKLI spot month contract opened very high this morning at 1,721 following the election results last night saw the ruling coalition retaining power. Today’s Support and Resistance for May contract is located around 1,720 and 1,820 respectively.

FCPO Related News (Tues, Apr 30)

[Malaysia April Palm Oil Exports 1.31 Mln Tons, Down 4.3% – Intertek ]

SINGAPORE, April 29 (Reuters) - Malaysian palm oil futures lost ground on Monday after four straight sessions of gains, although traders remained cautious ahead of export data that could provide further trading cues. The edible oil posted its first weekly gain out of five last week, supported by rising Malaysian exports for the first 25 days of the month thanks to stronger demand from India, Europe and the United States.

The gains prompted some profit-taking as the market lacked fresh stimulus, with the Chinese soybean oil market closed for holiday and ahead of Malaysia's palm export data for the full month due on Tuesday. "The market is a bit quiet today as the Dalian markets were closed. There's also exports data due on Tuesday so traders are waiting for further direction on stocks," said a trader with a foreign commodities brokerage in Kuala Lumpur.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange fell 1.7 percent to close at 2,277 ringgit ($751) per tonne. Prices touched 2,334 ringgit on Friday, the highest since April 12. Total traded volumes were thin at 26,636 lots of 25 tonnes each, compared to the average 35,000 lots. Investors are pinning their hopes on healthy exports and lacklustre production to help cut stockpiles in Malaysia, which eased from February's 2.43 million tonnes to 2.17 million tonnes last month. Lower palm oil inventory level could provide support for palm oil prices, which have lost 6.6 percent so far this year. Leading analyst Dorab Mistry forecast in March that prices could rise to 2,400 to 2,700 ringgit by the end of May, as weaker production speeds a fall in stockpiles.

In other markets, Brent crude oil slipped to $103 per barrel on Monday as an uncertain outlook for growth in the world's two largest oil consumers, the United States and China, encouraged commodities markets to consolidate. In vegetable oil markets, U.S. soyoil for July delivery fell 0.6 percent in late Asian trading. The Dalian Commodities Exchange is closed for Labour Day and will only resume trading on Thursday.

Today’s Support and Resistance for benchmark July contract is located around 2,260 and 2,326 respectively.