FKLI related news

NEW YORK (MarketWatch) — U.S. stocks finished a low-volume session with minor declines Monday as investors moved cautiously ahead of central-bank meetings and the monthly jobs report later in the week. The Fed begins a two-day meeting on Tuesday while ECB will meet on Thursday.

Most Asian markets advanced Monday after European leaders signaled they were prepared to take stronger action to curb the region's debt crisis, while Mainland Chinese stocks declined amid lingering worries of an economic slowdown.

Malaysian shares closed higher yesterday at 1632.5. Further gains could be limited as the index is in overbought territory. A local dealer tips the market to stay within 1620-1635 range.

FCPO related news

Malaysian crude palm oil edged to a one-week high on Monday, tracking gains in broader financial markets on  expectations  the  Federal  Reserve  and  European  Central Bank (ECB) will announce new measures to encourage  growth, boosting  commodity demand. 
U.S.  soybeans  rallied  nearly  3  percent  on  Monday on  fears  that  the  crippling  U.S.  drought  would  further  shrink  the  crop   in   the   world's   top   grains exporter. Brent oil ended down for the first time in five sessions on Monday as worries that expected stimulus from the United States and Europe may fail to lift their economies overshadowed signs of lower OPEC production. (Reuters)

Malaysian FCPO prices rose to the highest level in a week on Monday after the government said it would increase the 2012 duty-free CPO export quota by two million tons. The additional two million tons will prevent a sharp rise in palm oil inventories and also "prevent a slide in CPO prices."  This will also help planters  to cope with higher output in the next few months.
 

Persistent drought in the U.S. Midwest that threatened soy crop yields also supported prices, with traders expecting a crop downgrade in the weekly progress report by the U.S. Department of Agriculture (USDA), due later on Monday. Tighter soy crop supply leading to less soybean oil could shift vegetable oil demand to the cheaper palm oil. Midday weather updates indicated even drier weather than earlier forecasts in the U.S. Midwest for the next week or two which will increase stress on corn and soybean crops that already have been slashed due to the worst drought in over 50 years, an agricultural meteorologist said on Monday.

Exports of Malaysian palm oil have declined since early July, reflecting weaker demand, as major vegetable oil buyers completed purchases needed before the Muslim fasting month of Ramadan. Concerns about slowing exports and rising stockpiles at a time when CPO output in Southeast Asia typically rises led to last week's dip. Palm oil slipped to MYR2,880/ton on Thursday, the lowest level seen since June 18. Investors are also keeping a close watch on a U.S. Department of Agriculture weekly crop progress report at 2000 GMT and July export estimates from cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd., due Tuesday.

The benchmark October palm oil futures on the Bursa Malaysia Derivatives Exchange closed higher yesterday at 3,005 ringgit per tonne. Informed traders most likely abandoned their short position when the benchmark October gapped up above 2,955 level as the immediate resistance trend line has been breached. However, today FCPO October dropped below the Support level of 2,973 although it has since recovered to 2,970.

Technicals turned bullish as palm oil broke a resistance at 2,987 ringgit and could trigger a gain to 3,021 ringgit, Reuters market analyst Wang Tao said.

Average palm oil prices in Malaysia may hold their ground at 3,200-ringgit this year, a Reuters poll showed, supported by a squeeze in supplies of edible oil from the drought-hit U.S. Midwest and the brewing El Nino weather pattern.

FKLI related news

The Dow Jones Industrial Average (INDU) capped its biggest advance in almost a month after European Central Bank President Mario Draghi pledged to defend the euro. (Bloomberg) 

Mr. Draghi hinted in a London speech that the bank was ready to restart its bond-buying program to help ease the crisis. He also made it clear the bank is willing to do "whatever it takes" to keep the euro zone together.

Oil rose for a third straight day on Thursday and most other commodities ended up as well after the European Central Bank pledged to do all it could to prevent a euro zone collapse.

FKLI July contract opened higher this morning at 1629, but dropped to 1623 around midday. Today’s Support is located around 1615 and Resistance is at 1635.

FCPO related news

Malaysian crude palm oil fell to its lowest in more than five weeks on Thursday, as investors turned more bearish on forecasts for rain in parts of the U.S. Midwest that could bring some relief to the drought-hit soy crop. (Reuters)

Crude palm oil futures on Malaysia's derivatives exchange ended sharply lower Thursday due to lingering concerns over the health of the global economy, weak palm oil exports and improved weather forecasts for the U.S. Midwest, temporarily allaying fears of widespread damage to the U.S. soybean crop. Slowing growth momentum in China and the euro-zone debt crisis are also damping market sentiment, traders said.

July export figures were also bearish. Cargo surveyor Intertek on Wednesday said July 1-25 exports slipped 14% from the same period in June to 1.03 million tons. Another surveyor, SGS (Malaysia) Bhd., put July 1-25 exports at 986,829 tons, a decline of 19% on month.

Oil futures rose for a third straight day on Thursday after a pledge by the European Central Bank to protect the euro zone eased some worries about the region's debt crisis.

FCPO October contract closed sharply lower yesterday at 2882 but opened higher this morning at 2905. Downside risk is likely increased as the benchmark October will recover as the downside for Soy oil prices is likely capped around 51.50 - 51.60 cents per pound. Conclusively, medium term downtrend is still in motion with expectation on mild technical rebound along the way. Today's Support is located around 2830 and resistance is around 2950.

FCPO NEWS

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FCPO related news

Malaysian crude palm oil rebounded on Wednesday on bargain hunting after prices hit a five-week low earlier in the session, although gains were modest as investors remained worried that the euro zone debt crisis could hurt demand.(Reuters)

CBOT soybean futures rose on renewed fears that the recent  drought and future weather conditions will diminish soybean yield further.

Rainfall in the northern U.S. Midwest is expected over the next 10 days, and will provide some relief for the drought-stricken corn and soybean crops, an agricultural meteorologist said on Tuesday. However, much more rain is needed to ease the drought in U.S.

In Malaysia, demand for palm oil exports is expected to remain weak for the rest of July, and end-July stockpiles will likely rise to 1.80 million - 1.85 million tons compared with end-June's 1.70 million tons. Commodities prices are also likely getting strong pressure from rising Dollar index at the moment. Trading executives tip July 1-25 exports to fall 16%-18% from the same period in June to 990,000 tons, continuing a recent downtrend. 

The market is also watching for signs of El Nino returning to Southeast Asia as the hot and dry weather could hurt palm oil output for top producers Indonesia and Malaysia.

FCPO October opened lower at 2927. Today's support is located around 2910 and could test resistance at 2980. 

FKLI related news

25/7

NEW YORK (Reuters) - Wall Street stocks fell on Tuesday, hit by signs the euro zone crisis is worsening and evidence that Europe's slowdown is hurting U.S. companies, including corporate bellwether United Parcel Services.

Weak corporate earnings combined with a weak report on manufacturing and the Europe's debt crisis, sent investors fleeing stocks for a third straight day on Tuesday.

Even Apple delivered a rare earnings disappointment after the closing bell, boding poorly for Wednesday's trading. However, stocks got a lift late in the session after the Wall Street Journal said Federal Reserve officials were moving closer to taking new steps to spur activity and hiring.

Concerns about the euro zone grew after Spain was forced to pay the second highest yield on short-term debt since the launch of the Euro and European Union officials said Greece had little hope of meeting the terms of its bailout. In addition, Moody's Investors Services revised its outlooks on the sovereign ratings of Germany, Netherlands and Luxembourg to negative from stable.

However, a pickup in Chinese manufacturing activity offered some suport. Today's support is located around 1620 while resistance is pegged at 1635.

FCPO Related News

Malaysian crude palm oil futures slid to a near three-week low on Wednesday, as traders booked profits partly on weaker exports and better production outlook in Malaysia after a recent U.S. weather-fuelled rally. (Reuters)

U.S. soybeans rallied to a record high on Wednesday on fears that the worst drought in 56 years, which has devastated the corn crop, will now turn on soybeans as forecasts called for continued hot and dry weather. Oil prices rose on Wednesday, hitting a seven-week peak as violence in Syria and tensions with Iran reinforced geopolitical fears and U.S. Federal Reserve Chairman Ben Bernanke downplayed the risk of a double-dip recession.

Crude palm oil futures on Malaysia's derivatives exchange ended lower Wednesday, succumbing to profit-taking pressure and declines on the Dalian Commodities Exchange, in addition to weak export figures and the sudden correction on soybean oil price.

Weather remains a threat to yield potential in India's oilseed-growing areas as well as in oil palm-growing areas of Malaysia and Indonesia due to a developing El Nino weather event. Should another El Nino episode occur, we can expect India's edible oil imports to spike up sharply" and boost palm oil prices, an analyst said. India is major edible oil buyer and imports about half of its needs.

Palm oil's widening discount to rival soyoil will also likely support. "Some investors anticipate the price gap to widen to $300/ton soon" and that could drive price-sensitive buyers to switch to palm oil, Chandran Sinnasamy, trading head at Kuala Lumpur-based LT International, said. Soyoil's premium to palm oil is around $230/ton now, compared with a historical average of $100/ton, physical market data showed.

FCPO October contract opened higher this morning at 3,018 and reached a high of 3,056 before closing at 3,045. Today's support is located around 2,967 while resistance is pegged around 3,044.

FKLI related news

NEW YORK—Investors pushed stocks sharply higher, erasing all of July's losses, as investors reacted to strong corporate earnings and continued hopes for central-bank intervention. The Dow Jones Industrial Average rose 103.16 points, or 0.81%, to 12908.70. (Wall Street Journal)

A big rise by Intel after it posted a strong earnings report drove up technology stocks, especially other chip makers. Those companies, plus industrials, were responsible for much of the gains in the market Wednesday. The government reported that builders broke ground last month on the most new homes and apartments in nearly four years. The 6.9 percent jump brought the number of housing starts to the highest since October 2008.

FKLI July contract opened high this morning at 1650 and closed slightly lower at 1648.5.  "The market is lacking clear direction, partly because of the earnings result season. Investors would want to look at some numbers first," says a local analyst. He tips 1650 resistance for the day.

FCPO related news

SINGAPORE, July 17 (Reuters) - Malaysian crude palm oil futures edged down on Tuesday as traders booked profits from the previous day's rally, although losses were limited as persistent hot and dry weather in the United States reduced global oilseeds supply.

Traders are also on the sidelines today ahead of testimony by U.S. Federal Reserve Chairman Ben Bernanke to Congress late Tuesday, a Singapore-based broker says.

Exports to China suffered the steepest decline, although demand is still expected to pick up due to various festivals, starting with the Muslim fasting month of Ramadan this week and with China and India celebrating key holidays from September to November.

On the technicals front, palm oil will retrace to 3,067 ringgit, as it did not break a resistance at 3,168 ringgit, said Reuters market analyst Wang Tao. FCPO October opened slightly lower this morning at 3,117 and reached a low of 3,081 by the second session.

FKLI related news

Coming off a huge gain on Friday, the Dow Jones Industrial Average (INDEX: ^DJI  ) couldn't keep the momentum going, dropping 0.4% today. It was the seventh drop in eight sessions for the Dow. A disappointing retail sales report was the main catalyst for the decline today, as retail sales dropped for a third straight month, down 0.5%, versus analyst expectations for a small increase. Further stoking concerns over the global economy, the IMF cut its forecast for global growth and called on European leaders to do more to deal with the debt crisis.  (Motley Fool)

U.S. retail sales unexpectedly fell for a third month in June amid weak job growth. The 0.5 percent drop exceeded the most pessimistic forecast in a Bloomberg News survey that called for a median 0.2 percent gain.

Growth worldwide will be 3.9 percent next year, less than the 4.1 percent estimate in April, the IMF predicted in an update of its World Economic Outlook.

FCPO related news

FCPO dropped yesterday due to concern over the health of the Chinese economy ahead of the release of its second-quarter growth data Friday as China is a major importer of palm oil.

"Based on USDA overnight data [on soybean yield], FCPO should recover today but Friday's trade may be slow and rangebound as people may sit on sidelines ahead of the weekend," a trading executive in Kuala Lumpur said. The U.S. Department of Agriculture said in a report Wednesday that the country's soybean output would decline due to drought in the Midwest. The USDA cut its yield forecast for the crop to 40.5 bushels per acre from 43.9 bushes an acre.

Analysts expects the trend to reverse, because of the wide price spread of $210 a ton between soyoil and cheaper palm oil, compared with the historical average of $100/ton. Meanwhile, dry weather affecting soybean oil is expected to continue.

FKLI September opened slightly higher this morning at 3,017 and closed the first session higher at 3,030.

FKLI related news

TOKYO (Reuters) - Asian shares and the Australian dollar jumped on Friday after China's second-quarter gross domestic product data landed in line with forecasts.

But market relief could be short-lived as Moody's downgrade of Italy's credit rating to near-junk status just ahead of a bond auction threatens to reinforce fears over Europe's debt crisis.

China's economy grew 7.6 percent in the second quarter from a year earlier, the slowest pace since the January-March quarter of 2009, and in line with market expectations for a 7.6 percent rise. It marks the sixth consecutive quarter of slower growth and compared with an annual growth of 8.1 percent in the first quarter.

U.S. stocks fell Thursday due to losses in the technology sector on concerns about the impact of a faltering global economy on corporate earnings.

The Dow Jones Industrial Average dropped for the sixth straight day by 3.71 points to 12,600.82 points.

Data showed initial claims for state unemployment benefits in the United States dropped to the lowest in four years, but that did little to alleviate concerns that a broader economic slowdown could chip away at corporate profits. Other economic data showed U.S. June import prices fell 2.7 percent, the most in three years, due to a plunge in the cost of imported oil, adding more inflation pressures.

FKLI July opened slightly higher this morning at 1624.5 and was moving upward again around noon. Resistance could be challenged at 1635, given that most technical indicators remain positive. Immediate support could be at 1620.

  

FCPO


Malaysian crude palm oil futures slipped on Tuesday as weak exports signalled consumers might have stocked up well ahead of the Muslim holy month of Ramadan although losses were capped by dry U.S. weather potentially hurting soy output. (Reuters)


However, palm oil is likely to advance in coming weeks because "the heat and drought in the U.S. Midwest aren't going away," an oilseed analyst in Germany said. Furthermore, as the probability of El Nino has increased based on the drop in the Southern Oscillation Index to minus 11.8 per cent recently, a drought in South-East Asia is very likely.  This could be the initial catalyst for the commodity's price rally. Moreover, the Malaysian Palm Oil Board (MPOB) released data yesterday showing a 4.9 per cent drop in stocks from 1.785 million tonnes in May to 1.699 million tonnes in June.


FCPO September opened at 3,141 and dropped to the day's low of 3,080. You can look for opportunity to buy at Support and sell at Resistance.

FKLI

NEW YORK (AP) -- Stocks fell for the fourth straight day Tuesday following a profit slump of technology companies and a steep decline in oil prices, which sent energy stocks sharply lower. (Associated Press)

Dow Jones dropped 83.17 points while Chinese trade data revealed that import growth fell in half in June from May, signaling that its economy may be slowing more than expected.

FKLI July opened this morning at 1626.5 and reached a record high of 1636.5.

Technically,upside potential on index futures remain high as market can still go up even though there was some Bearish signals along the way. With no sign of weakness yet, traders are advised to hold their Longed positions and for those who missed out their entry, try to find the chances to go Long instead of Short.