Thursday, 7 November 2013
FCPO Related News (Fri, Nov 8)
KUALA LUMPUR, Nov 7 (Reuters) - Malaysian palm oil futures fell to a one-week low on Thursday, stretching losses into a third day as investors continued to take profits from last week's steep gains, but prices were stuck in a range ahead of key output and inventory data. Production in Southeast Asia, which accounts for nearly all of the world's palm oil supply, may have tapered off sooner than expected this year as the monsoon season hampered harvesting.
Investors are eyeing data from Malaysia -- the world's No.2 producer -- on palm oil stocks, exports and output in October that will be released by industry regulator the Malaysian Palm Oil Board on Nov. 11. "The market is quiet. Prices are moving in a 2,550-2,600 ringgit range as investors wait for new leads," said a trader with a foreign commodities brokerage. A Reuters survey showed that Malaysian palm oil stocks probably inched up to 1.82 million tonnes in October, with the increase in inventories limited by lower output of the tropical oil that was predicted to have dropped by 3.3 percent.
By Thursday's close, the benchmark January contract on the Bursa Malaysia Derivatives Exchange had edged down 0.2 percent to 2,543 ringgit ($800) per tonne. Palm oil prices, which traded in a range of 2,525-2,562 ringgit, have shed 3.2 percent so far this week after last week's almost 8 percent gain, the biggest such rise since 2010. Total traded volume stood at 46,772 lots of 25 tonnes each on Thursday, higher than the usual 35,000 lots. Technicals were bearish. Malaysian palm oil is expected to break support at 2,544 ringgit per tonne and fall further towards 2,491 ringgit, Reuters market analyst Wang Tao said.
The price of the tropical oil could however get a boost from prospects of a drop in output and stronger Asian demand. China, the world's second-biggest palm oil buyer, is expected to begin re-stocking the edible oil ahead of its Lunar New Year festival celebrated at the end-January. "We would expect China to increase palm oil imports in the upcoming months, especially after the winter season," said Phillip Futures analyst Tan Chee Tat in a note on Thursday.
In competing vegetable oil markets, the U.S. soyoil contract for December fell 0.2 percent in late Asian trade. The most-active May soybean oil contract on the Dalian Commodities Exchange fell 0.3 percent.
In other markets, Brent crude fell below $105 a barrel to its lowest since early July as plentiful supplies and continued progress in talks between Iran and the West over Tehran's disputed nuclear programme weighed on prices.
Thursday, 15 August 2013
FCPO Related News (Fri, Aug 16)
[Malaysia August 1-15 Palm Oil Exports 644,589 Tons, Up 17.7% on Month –ITS]
[Malaysia August 1-15 Palm Oil Exports 636,466 Tons, Up 18% on Month –SGS]
Malaysian palm oil futures rose on Thursday to their highest in more than a month, boosted by strong exports from the world’s second-largest producer, as major buyer China stocks up ahead of the Mid-Autumn festival in September. Exports of Malaysian palm oil products from Aug. 1 to 15 rose 17.7 percent to 644,589 tonnes from the 547,857 tonnes shipped from July 1 to 15, cargo surveyor Intertek Testing Services said on Thursday. "The palm market's stronger today mostly due to good exports in the first 15 days ... We are in a price range now where immediate support is at 2,280 ringgit and resistance at 2,340 ringgit," said a trader with a foreign commodities brokerage in Kuala Lumpur.
By the midday break, the benchmark October contract on the Bursa Malaysia Derivatives Exchange had gained 1 percent to 2,313 ringgit ($706) per tonne. Prices earlier touched 2,318 ringgit, a level not seen since July 12. Total traded volume stood at 17,048 lots of 25 tonnes each, higher than the usual 12,500 lots. A bullish target range on technical charts of 2,348-2,356 ringgit per tonne remains unchanged, as indicated by its wave pattern and a Fibonacci ratio analysis, said Reuters analyst Wang Tao. Malaysia's July palm oil end-stocks unexpectedly rose for the first time this year on a surge in production of the tropical oil.
Data from the Malaysian Palm Oil Board (MPOB) on Wednesday showed inventories rose 1 percent in July to 1.66 million tonnes, marking the first rise since December, against market estimates that stocks had dropped 3 percent. But analysts said a surge in local consumption, indicated by the MPOB stocks data, showed that palm oil demand remained healthy. "Despite the strong surge in production, stockpiles only rose by 1 percent ... due to a sharp increase in local palm oil consumption to a record high of 289,900 tonnes," Malaysia's RHB Investment Bank said in a research note on Thursday. "Part of the surge was due to near-record biodiesel exports, but, more importantly, the conversion of crude palm oil to biodiesel for local consumption."
In other markets, Brent crude prices climbed towards $111 per barrel on Thursday, extending gains from the previous session on a drop in U.S. oil inventories and worries over supplies from the Middle East and North Africa. In vegetable oil markets, the U.S. soyoil contract for December gained 0.5 percent in early Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange climbed 0.3 percent. [Reuters]
FKLI Related News (Fri, Aug 16)
Share prices on Bursa Malaysia closed marginally lower yesterday on mild selling amid weaker external sentiment, dealers said. The FTSE Bursa Malaysia KLCI (FBM KLCI) moved between 1,791.23 and 1,797.17 during the day before ending at 1,792.21, off 1.52 points. A dealer said the market was volatile throughout the day, with the benchmark index moving sideways below the 1,800-point level, amid bearish regional bourses. “Uncertainty over the stimulus program in the United States kept investors cautious.” [Bernama]
Stocks finished near their session lows Thursday, with the Dow dropping more than 200 points, as the market continued to speculate about when the Federal Reserve, responding to an improved economy, will start to reduce its generous stimulus to the markets. The Dow Jones Industrial Average tumbled 200 points, dragged down by a 7 percent drop in Cisco. Cisco Systems posted earnings and revenue that edged above Wall Street expectations but shares tumbled heavily after the network equipment maker said it would cut 4,000 jobs in the face of uncertain demand for its products. All key S&P sectors were firmly in negative territory, led by techs and financials. [CNBC]
Today’s Support and Resistance for FKLI spot month contract is located around 1,780 and 1,800 respectively.
Thursday, 18 July 2013
FCPO Related News (Fri, July 19)
SINGAPORE, July 18 (Reuters) - Malaysian palm oil futures edged higher on Thursday after a price slump this week to seven-month lows attracted buyers, but gains were capped by lingering concerns over weak demand and rising output. Slowing demand after the start of Ramadan slashed Malaysian palm oil exports during the first half of July, while the start of a higher production cycle in the second half of the year also raised prospects of higher inventory levels this month. "The market fell quite a lot on Monday and Tuesday and that brought in some buying interest," said a trader with a foreign commodities brokerage in Kuala Lumpur. "But concerns remain over slowing demand, especially when production picks up in the second half of the year."
By Thursday's close, the benchmark October contract on the Bursa Malaysia Derivatives Exchange had gained 1.8 percent to 2,291 ringgit ($717) per tonne. Prices hit their lowest level this year of 2,222 ringgit on Tuesday on bearish fundamentals. Total traded volume stood at 53,157 lots of 25 tonnes each, well above the usual 35,000 lots. Prices moved between 2,248 ringgit and 2,294 ringgit.
Analysts said concerns over weaker demand from major buyers China and India in the second half of the year could lead to further weakness for palm oil prices, which have fallen nearly 6 percent so far this year. "We believe the resilience of crude palm oil (CPO) imports to the world's top market, India, could be dented by the steep depreciation of the Indian rupee," said Standard Chartered analyst Abah Ofon in a report. "This, coupled with a potentially large edible oilseed harvest in 2013/14 and renewed concerns about demand from China, suggests that the CPO market will need to adjust lower," he added. China is the world's second-largest palm oil buyer after India.
Technicals showed palm oil is biased to test a support of 2,233 ringgit per tonne, as indicated by its wave pattern and a Fibonacci projection analysis, said Reuters market analyst Wang Tao. In other markets, Brent oil fell on Thursday to near $108 a barrel as a strengthening dollar undercut expectations for rising demand after a third weekly drawdown in U.S. crude stocks. In vegetable oil markets, the U.S. soyoil contract for December was up 0.2 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange rose 0.4 percent.
Today’s Support and Resistance for FCPO benchmark October contract is located around 2,270 and 2,310 respectively.
FKLI Related News (Fri, July 19)
Stocks finished higher Thursday, with the Dow and S&P 500 setting fresh highs, boosted by a batch of upbeat economic reports and after Fed Chairman Ben Bernanke reiterated that monetary policy will remain flexible, even as the central bank starts to pare back its bond buying. The Dow Jones Industrial Average climbed 78 points to best its previous all-time high of 15,542.40 by six points. UnitedHealth and Bank of America led the blue-chip gainers. The S&P 500 also topped its previous record of 1,687.18. Most key S&P sectors closed higher, led by energy and financials, while telecoms lagged.
Bernanke returned to Capitol Hill to testify before the Senate Banking Committee on the economy and Quantitative Easing, after reassuring the markets Wednesday that there was no concrete timetable for the Fed to scale back its bond purchase program. "Our asset purchases depend on economic and financial developments, but they are by no means on a preset course," Bernanke said in his statement to the U.S. House of Representatives Financial Services Committee. Bernanke also emphasized that there could be a lengthy time-lag between the end of asset purchases and a hike in interest rates.
On the economic front, weekly jobless claims dropped by 24,000 to a seasonally adjusted 334,000, according to the Labor Department, to its lowest level in four months. Economists polled by Reuters expected first-time applications to fall to 345,000 last week. European shares were higher, but gains were limited by some lackluster earnings reports. In Asia, the Japanese Nikkei index hit an eight-week high, boosted by the weak yen. [NBC News Business]
The FTSE Bursa Malaysia KLCI posted a record high at the close of trading yesterday, gaining 2.88 points to 1,791.54 on strong buying interest from retail investors, dealers said. On Bursa Malaysia, gainers almost doubled losers by 547 to 280, with 301 counters unchanged and 457 untraded, including 24 which were suspended. Turnover rose to 1.751 billion shares worth 2.744 billion. Interpacific Securities research head Pong Teng Siew said sizeable gains in low liners that attracted retail investors to participate actively in the market helped to push the index to an all-time high at the close. “However, it is difficult for this trend to be sustained as trading (yesterday) was mostly on the speculative buying,” he said. [Bernama]
FKLI spot month contract opened higher this morning at 1,795 following strong buying interest from retail investors. Today’s Support and Resistance for July contract is located around 1,790 and 1,810 respectively.
Thursday, 20 June 2013
FCPO Related News (Fri, June 21) KUALA LUMPUR, June 20 (Reuters) - Malaysian palm oil futures ended lower on Thursday, as global economic uncertainty spooked investors, although losses were limited by robust export data and a weaker local currency that sent prices to a near three-month high inthe morning session. Exports of Malaysian palm oil products for June 1 to 20 rose 16.2 percent to 928,810 tonnes from the same period last month, cargo surveyor Intertek Testing Services said on Thursday.The spike in shipments reflected higher purchases by India andPakistan ahead of the Muslim holy month of Ramadan in July, when communal feasting typically increases consumption of the edible oil. Despite supportive fundamentals, investor sentiment was weak, with markets from crude oil to Asian shares tumbling on Thursday, as slowing Chinese manufacturing activity hurt sentiment even further after the Federal Reserve signalled it would begin to dial down stimulus this year."The market ended a little lower because of the fragile sentiment.But fundamentals are still supportive with exports rising higher and the ringgit still weak," said a trader with a foreign commodities brokerage in Kuala Lumpur. The benchmark September contract on the Bursa Malaysia Derivatives Exchange lost 0.3 percent to close at 2,465 ringgit ($771) per tonne. Prices rose to an intraday high of 2,491 ringgit in the morning, a level last seen on March 25.Total traded volume stood at 34,107 lots of 25 tonnes each, slightlylower than the usual 35,000 lots. Despite the lower market close, traders said a weak ringgit could still support prices, as it makes the tropical oil cheaper for overseas buyers and improves refining margins. The ringgit lost nearly 3 percent against the dollar on
Thursday, with the greenback stronger after the Fed's announcement. In vegetable oil markets, U.S. soyoil for July lost
0.8 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange lost 0.5 percent.
FKLI Related News (Fri, June 21)
The Dow Jones Industrial Average plummeted 353.87 points, or 2.34 percent, to 14,758.32. The broader S&P 500 Index fell 40.74 points, or 2.50 percent, to 1,588.19. The tech-heavy NASDAQ dropped 78.57 points, or 2.28 percent, to 3,364.63. The Dow sell-off alone had wiped out more than $120 billion of investors' capital since Fed Chairman Ben Bernanke's comments on Wednesday afternoon. In the last two days, the Dow and the S&P 500 have lost all of their gains for May and June combined.
Despite positive news on the U.S. housing front, higher than expected U.S. jobless numbers added to the gloomy atmosphere on the markets and benchmark Treasury yields were near their highest in almost two years. "Despite the sell-off yesterday, you saw the cyclical names holding on that's considered important because it's more indicative of the underlying strength of the economy," noted Quincy Krosby, market strategist at Prudential Financial. "We shouldn't be surprised by what the Fed said yesterday—Bernanke had already mentioned this in his speech back in May and we saw an immediate reaction in the bond market," said Krosby. "We haven't had a meaningful correction in the market and if this selloff continues…it doesn't mean the market is going to collapse; it is essentially recalibrating—the road to normal is going to be filled with detours."
European shares closed deeply in the red across the board with the FTSEurofirst 300 index falling nearly 3 percent. Markets in Asia were slammed, with the Japanese Nikkei closing down nearly 2 percent. South Korea's Kospi and the Shanghai Composite traded near 2013 lows. Adding to woes in Asia, China's HSBC Flash Purchasing Manager's Index, a preliminary reading of manufacturing activity, fell to a nine-month low in June.
FKLI spot month contract opened lower at 1,733 this morning following Dow’s big drop. Today’s Support and Resistance for June contract is located around 1730 and 1750 respectively.