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Malaysian palm oil futures ended off a 2-year low on Thursday, as investors remained cautious over high stocks and the eurozone debt crisis.  Crude palm oil futures on Malaysia’s derivatives exchange Thursday fell to a fresh two-year low, reflecting high stockpiles, seasonal increases in U.S. soy supplies and concerns about the euro-zone debt crisis. The benchmark December contract at Bursa Malaysia Derivatives fell as much as 1.8% to 2,569 ringgit a ton, a level not seen since September 2010, but recouped losses toward the end of trade on bargain-buying. The contract ended at MYR2,607/ton, a decline of 0.3% from Wednesday’s close.

Analysts said palm oil inventories for September and October in Malaysia, the world’s second-largest CPO producer, could increase from 2.12 million tons in August because demand isn’t rising fast enough. Despite ample supplies, further steep declines in palm values are unlikely, Ker Chung Yang, an investment analyst at Singapore-based Phillip Futures said. "Technical charts are flashing oversold signals. I expect prices to rebound [toward MYR2,700/ton next week] and the upward momentum will be sharp and strong," Mr. Ker said. "Prices could rally in the last quarter of 2012 and the current price dip presents good buying opportunities for investors to go long."

Palm oil futures could be headed for another vicious selldown if the benchmark contract made another new low around 2,568 level today. So far, no promising sign for medium term recovery yet as market kept on creating lower highs candle formation which signifies Bearish price action. Today’s Support and Resistance  for the benchmark Dec is located around 2,570 and 2,640 respectively.

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NEW YORK, Sept 27 (Reuters) - The S&P 500 snapped a five-day string of declines in a broad-based rally on Thursday, as Spain's plans for economic reform eased some worries about one of the euro zone's most troubled countries. Spain announced a detailed timetable for economic reforms for the fiscally troubled nation and a tough 2013 budget based mostly on spending cuts.

Adding to the rally was a last-minute push by investors to reposition portfolios ahead of the quarter's end, with the S&P 500 on track for a gain of 6.2 percent in the third quarter. Friday will be the quarter's last trading day. "What we've seen is broadly a consolidation, but also an attempt by fund managers to position properly for the rest of the year, to be in the best sectors," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.

The Dow Jones industrial average shot up 72.46 points, or 0.54 percent, to 13,485.97 at the close. The Standard & Poor's 500 Index rose 13.83 points, or 0.96 percent, to finish at 1,447.15. The Nasdaq Composite Index gained 42.90 points, or 1.39 percent, to close at 3,136.60. Apple, up 2.4 percent at $681.32, gave the biggest lift to the Nasdaq. The semiconductor index gained 2.3 percent, bolstering the Nasdaq 100. Intel Corp was up 1.9 percent at $23.09.

Chinese stocks surged on Thursday to lead in an upbeat session for Asian markets, amid reports the country’s central bank injected a record amount of liquidity into the banking system.

Oil prices rose on Thursday as tensions between Iran and the West reinforced concerns about potential supply disruptions, while Spain's plans for economic reform also lent support to crude and lifted equities on Wall Street and  a weaker dollar helped metals and soft commodities rebound from the sharp selloff of the previous session. Gold stocks ranked among the day's bigger gainers in the wake of Spain's news; the PHLX gold/silver index jumped 3 percent.

FBM KLCI closed 8.54 points up yesterday  at 1,627.84, while spot month contract recovered about 15.50 points to 1,633.50. According to Hwang DBS, local equities may ride on the back of possible quarter-end window dressing activity and Budget 2013 expectations. Today’s Support and Resistance will be located around 1620 and 1645 respectively.

FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange fell Wednesday, pressured by rising palm supplies and renewed concerns over Europe’s debt problems. The benchmark December contract at Bursa Malaysia Derivatives ended 1.8% lower at 2,621 ringgit ($853.40) a metric ton after moving in a MYR2,603-MYR2,642 range. (Dow Jones Newswire)

Palm oil is being pressured by "uninspiring" export demand in September and rising Southeast Asian supplies and the rapid progression of U.S. harvests of corn and soybean, a vegetable oil exporter in Pasir Gudang, Malaysia said. "We need exports to go up substantially to draw down inventory levels in Malaysia." The U.S. corn and soybean harvests are moving at a fast pace for this time of the year. The U.S. Department of Agriculture on Monday said 22% of the country’s soybean crop had been harvested through Sunday, up 12 percentage points, from a week earlier.

Analysts said palm oil output in Malaysia, the world’s largest CPO producer after Indonesia, could reach its peak during the September-October period, potentially pushing end-October inventories to 2.4 million tons and to 3 million tons by Jan. 1. Palm oil stockpiles reached 2.12 million tons at end-August, a level not seen since last October. Palm oil could ease back to a two-year low of MYR2,577/ton reached Monday, as "speculative investors are still in the process of liquidating riskier positions," a commodities trader in Kuala Lumpur said.

Market outlook is split between bearish and bullish. CIMB Research expects a recovery in prices by year-end, to around MYR2,800-MYR3,000/ton as demand for palm oil is expected to pick up by then, tipping palm oil stockpiles in Malaysia to peak at 2.43 million tons in October. But less optimistic trading executives expect palm oil to pull back further amid renewed concern about Europe’s economic situation. Yesterday’s rebound is seen as merely a brief correction. “I don’t think the market has bottomed out and prices could fall below the two-year low mark of MYR2,577/ton in the near term," said Chandran Sinnasamy, trading head at Kuala Lumpur-based LT International. He tips medium-term support at MYR2,430/ton.

Technically, the current downtrend may continue as long as the immediate resistance for benchmark December around 2,700 level is not breached. OSK Research cautions that a close below MYR2,650/ton could mark the return of selling pressure in the market.  Today’s Support and Resistance is located around 2,550 and 2,694 respectively.

SINGAPORE, Sept 25 (Reuters) - China, the world's second largest edible oil buyer, will not seek more nearby shipments for palm oil despite sharp price declines recently as port stocks of edible oils remained high, traders said. "Stocks in Malaysia could still go higher in September and October, so although current price discount is attractive, the discount may still grow steeper," said a Shanghai-based trader. "It depends on the economy of China also. If the economy picks up, they may start to import a lot more," said a regional vegetable oil trader in Singapore. ($1 = 6.3093 Chinese yuan)

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NEW YORK (The Wall Street Journal) —Stocks fell for a third straight day, with energy and technology shares posting the steepest declines, as investors were spooked by euro zone instability and a slightly disappointing report on the U.S. housing market.

The Dow Jones Industrial Average fell 44.04 points, or 0.33%, to 13413.51. The Standard & Poor's 500-stock index closed down 8.27 points, or 0.57%, to 1433.32. Wednesday marked the fifth straight session of declines for the index, its longest streak of losses since July 12. The Nasdaq Composite lost 24.03 points, or 0.77%, to 3093.7.

Energy and technology sectors led the slide in the S&P 500. Crude-oil futures tumbled, despite a surprise decline in U.S. inventories. On the technology side, shares of Apple AAPL -1.24%fell for the third consecutive day after the company reported iPhone 5 sales that disappointed analysts. Other technology shares suffered as well, as the tech-heavy Nasdaq Composite posted its largest three-day drop since July 24.

Sales of new homes declined slightly in August, after economists had expected an increase. The Commerce Department reported that new-home sales fell 0.3% from the previous month to a seasonally adjusted annual rate of 373,000. At the same time, though, the median price for a new home increased 17% from August 2011, reaching a level not seen since March 2007. Figures released Tuesday showed that home prices have posted their strongest year-to-date gains since 2005.

Asian markets also fell sharply. Japan's Nikkei Stock Average slid 2%. Reports Tuesday said that China rejected an invitation from Japan to talk at this week's United Nations General Assembly, in light of a territorial dispute between the countries. China's Shanghai Composite Index shed 1.2%.

Today’s Support and Resistance for KLCI Futures spot month contract is located around 1600 and 1625 respectively.

FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Tuesday as speculative investors snapped up cheap positions after recent declines and higher Sept. 1-25 palm oil exports. The benchmark December contract at Bursa Malaysia Derivatives ended 0.9% higher at 2,669 ringgit a metric ton after moving in a MYR2,607-MYR2,676/ton range.

"The word ‘oversold’ was taken seriously today after a massive sell-off Monday. We also saw speculators buying back contracts, while the absence of planters selling physical CPO had end-buyers coming in to hedge palm futures," a trading executive at a Kuala Lumpur-based brokerage said. Malaysia’s Sept. 1-25 palm oil exports rose 11% from a month earlier to 1.17 million tons, due to increased shipments to China and India, according to cargo surveyor SGS (Malaysia) Bhd. Another surveyor, Intertek Agri Services, said Sept. 1-25 exports also reached 1.17 million tons, an increase of 8.3%. High inventory levels weighed on palm oil prices, although CIMB Research noted that "prices have fallen to a level that [could] encourage biodiesel demand and a switch from soyoil," as soyoil is currently offered at a wide premium of $310/ton to rival palm oil compared with a historical average of $100-$120/ton.

"We expect a recovery in prices by year-end, to around MYR2,800-MYR3,000/ton…demand for palm oil will pick up by then," CIMB Research said, tipping palm oil stockpiles in Malaysia, the world’s largest producer after Indonesia, to peak at 2.43 million tons in October. Inventory levels in Malaysia reached 2.12 million tons at end-August, according to data from industry regulator the Malaysian Palm Oil Board.

But less optimistic trading executives expect palm oil to pull back further amid renewed concern about Europe’s economic situation. "Today’s rebound is merely a brief correction. I don’t think the market has bottomed out and prices could fall below the two-year low mark of MYR2,577/ton in the near term," said Chandran Sinnasamy, trading head at Kuala Lumpur-based LT International. He tips medium-term support at MYR2,430/ton.

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(Bloomberg) U.S. stocks declined, erasing earlier gains after benchmark indexes approached five-year highs, amid concern that global stimulus measures won’t be enough to boost growth at the world’s largest economy.

Apple Inc. (AAPL) dropped 2.5 percent, extending a two-day decline to 3.8 percent, the most since July. Caterpillar Inc. (CAT), the world’s biggest construction and mining equipment maker, slumped 4.3 percent after cutting its forecast for 2015 earnings. The Standard & Poor’s 500 Index retreated 1.1 percent to 1,441.59 at 4 p.m. New York time, the biggest decline since June 25. The index dropped a fourth day. The Dow Jones Industrial Average decreased 101.37 points, or 0.8 percent, to 13,457.55. Volume for exchange-listed stocks in the U.S. was 6.7 billion shares today, or 12 percent above the three-month average.

Stocks gained earlier today as data showed confidence among American consumers rose in September to a seven-month high. Home prices climbed more than forecast in July from a year earlier. Both the S&P 500 (SPX) and the Dow average are near their all- time highs of October 2007 as investors bought equities amid optimism about better-than-estimated earnings and central bank stimulus measures. The Dow needs to rise 5.3 percent to reach its peak of 14,164.53, while the S&P 500 needs an increase of 8.6 percent to reach its record of 1,565.15.

The more aggressive selling may have been sparked by reports of violence in Madrid, where anti-austerity protesters clashed with police. The government will unveil its 2013 budget Thursday, and it will likely include more painful cuts to the public sector. Spain already has slashed outlays for such items as education, health care and public-sector pay.

Brent crude rose on Tuesday in choppy trade as tensions over Iran reinforced the geopolitical fear premium and concerns about slowing global economic growth pressured U.S. oil prices.

Malaysia shares may fall, tracking declines on Wall Street, on concerns the recent U.S. stimulus may not be enough to boost its economy. Early technical signs such as lower low and lower high formed for the first time after four months in daily chart indicates a possible downtrend. The Stock index has rallied steadily since Oct last year without any major correction above 100 points. For today, spot month contract support level is located around 1,600 while resistance is around 1,625.

FCPO Related News

Malaysian palm oil futures tumbled on Monday to their lowest in two years, hurt by rising inventories and steep losses in U.S. soybeans on expectations of higher output. Soybeans fell below $16 a bushel on Monday for the first time in 11 weeks, as the harvest advanced at a record pace and investors worried about the economy fled to the dollar, but bargain buying pared losses from the session low. (Reuters)

However, CPO futures may recover due to higher palm export demand. Palm oil exports for 1-25 September  is up 8.3% from the previous month to around 1.17 million metric tons, cargo surveyor Intertek Agri Services said today.  Another surveyor, SGS (Malaysia) Bhd., is expected to issue its estimate for Sept. 1-25 exports later in the day. Support could also come from end users buying on dips," as palm oil's technical indicators show signs of an oversold market, a vegoil exporter in Pasir Gudang says, tipping resistance at MYR2,660/ton. The benchmark December contract at Bursa Malaysia Derivatives ended 4.2% lower at 2,646 ringgit ($860.87) a metric ton after falling as much as 6.7% to MYR2,577/ton, the lowest since September 2010.

Analyst Dorab Mistry told a vegetable oil conference in Mumbai over the weekend that palm oil stockpiles in Malaysia, the world’s largest producer after Indonesia, could rise to a record 3 million tons by early January as slowing global economic growth weakens demand for vegetable oils. "Demand for palm oil and for vegetable oils in general has been softer than expected in 2012 [due to] slower growth in biofuel production and the difficult economic situation in developing countries, coupled with high prices," Mr. Mistry said.

Still, further declines in palm oil values are likely to be limited as "the market is oversold and some investors will likely snap up cheap positions," a commodities broker in Kuala Lumpur said, adding that the drop in palm oil prices could spur fresh demand from India, the world’s largest importer of palm oil. India's edible oil market is very price sensitive, with low income-earners generally opting for whatever oil is cheapest. India's edible oil imports are likely to rise by about 500,000 tons in the 12 months starting Nov. 1 from an estimated 9.8 million tons in the previous 12-month period, with the increase mostly reflecting a rise in palm oil shipments, said Mr. Dinesh Shahra, managing director of India's largest palm oil refiner, Ruchi Soya Industries Ltd.

According to Thomas Mielke, editor of Hamburg-based newsletter Oil World, palm oil prices are "sizeably undervalued" in comparison with soy oil and the discount is unlikely to be sustained as lower prices will prompt importers to buy more palm oil. "Palm oil is offered at discounts of more than US$250 (per tonne) under soybean oil. I think this is not sustainable. We are going to see world import demand to shift to the more effectively priced palm oil," he  said at a conference in Mumbai over the weekend. The increased demand will help the world's top two palm oil producers - Indonesia and Malaysia - raise exports and trim inventory that has been depressing palm oil prices, Mielke said in his video presentation to the Globoil India conference.

CBOT soybean futures hit an all-time high of US$17.94-3/4 a bushel this month, but have since fallen nearly seven per cent as farmers in the US hastened harvesting of their new season crop. However, that crop is likely to be used up quickly due to higher prices and that will again create tight supplies, allowing prices to resume their rally, Mielke said, without giving any time frame. "Soyabean prices will resume their rally, exceeding US$18 a bushel, probably rising to US$19 or US$20 or above if any problems occur in South America," he said. Sowing has been progressing in South America, where output was hit by a severe drought last year.

Farmers  in Brazil's grain belt jump-started planting after early showers set the scene for what is expected to be a bumper corn and record soy crop, producers and analysts said on Friday. If rains continue in the coming weeks as forecast, Brazil could churn out 81 million tonnes of oilseed and replace the drought-stricken United States as the world's top soybean producer, according to the U.S. agriculture department. Strong and early 2012/2013 grains harvests from Brazil and neighboring Argentina would be welcome by food importing nations since lower U.S. production forecasts have driven up prices and stirred supply fears.

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NEW YORK, Sept 24 (Reuters) - U.S. stocks edged lower on Monday as a disappointing forecast from Caterpillar and weak German data increased concerns that global growth may remain sluggish.

Minutes before the close, Caterpillar cut its earnings forecast for 2015, citing weakness in the world economy. Its stock fell 0.9 percent to $90.87 and was the top drag on the Dow. After the bell, Caterpillar's stock lost another 2.1 percent to $88.99. An index of German business sentiment declined for a fifth consecutive month in September, showing Europe's strongest economy was moving closer toward recession as the euro zone's debt crisis remains unresolved. Concerns about a stalling global economy also were reflected in energy and technology shares, with the S&P energy index down 0.5 percent and the S&P 500 technology index down 0.8 percent.

The Dow Jones industrial average declined 20.55 points, or 0.15 percent, to close at 13,558.92. The Standard & Poor's 500 Index shed 3.26 points, or 0.22 percent, to 1,456.89. The Nasdaq Composite Index dropped 19.18 points, or 0.60 percent, to end at 3,160.78.

Dragging down the Nasdaq, Apple Inc fell 1.3 percent to $690.79 even as its latest iPhone sold out. Concerns arose that the company was unable to produce the new phone quickly enough to meet demand. Among other high-profile tech decliners, Facebook shares dropped 9.1 percent to $20.79. It was the Nasdaq's most actively traded stock. In contrast, shares of Google Inc, the world's No. 1 search engine, climbed to a record high of $750.04 as analysts said its solid advertising business and its revenue make the company look more attractive compared with once-hot newcomers to the social media scene. Google's stock closed at $749.38, up 2.1 percent.

Oil prices fell more than 1 percent on Monday, dragged by disappointing German economic data that reinforced concerns about the global economy and the outlook for fuel demand. The euro fell on Monday as investors looked past recently announced central bank stimulus plans to focus on weak German economic data and the euro zone's unresolved debt crisis.

Malaysia shares end down 0.7% at 1612.38, weighed by profit-taking amid renewed eurozone debt concerns; although declines are likely to be limited as "we expect some investors to buy on dips and underpin the market," says a local dealer, tipping the broader market to move in a 1595-1620 band in the near term. [Dow Jones Newswire]

FCPO Related News

Expectations for higher palm oil inventory levels for the October-December quarter this year amid slowing demand could drag BMD CPO futures lower at the start of trading Monday. "Palm oil futures' bearish [sentiment] remains, with immediate support tipped around MYR2,750-MYR2,755/ton," HLB Futures says, adding that failure to break below MYR2,750/ton will likely encourage end-users to buy on dips. (Dow Jones Newswire)

On Friday, benchmark palm oil futures on the Bursa Malaysia Derivatives Exchange lost 2 percent to close at 2,763 ringgit ($905) per tonne, after hitting an 11-month low of 2,755 ringgit earlier in the day. Brent crude closed at $111.42 per barrel.

Dorab Mistry Forecast (Bloomberg)

“Demand for palm oil in particular, and for vegetable oils in general has been softer than expected in 2012,” said Dorab Mistry, director at Godrej International Ltd., who has traded palm oil for more than three decades. Demand was hurt by slower growth in the production of biofuels from vegetable oils and a slowdown in economic growth in the developing countries amid high prices, he said. Mistry expects futures to drop to 2,600 ringgit to 2,700 ringgit a ton by December, less than the 2,900 ringgit to 3,300 ringgit he forecast on Sept. 6. The commodity last traded below 2,600 ringgit in September 2010.

With the recent sell-off, the probability of prices falling to 2,300 ringgit has risen to 50 percent from 20 percent in June, he said. The December-delivery contract fell 2 percent to 2,763 ringgit a ton on the Malaysia Derivatives Exchange on Sept. 21, the lowest price at close for the most-active contract since October 2010. The tropical oil has fallen 20 percent since the end of March and is heading for a second straight quarterly decline on concern that a pick-up in production will drive stockpiles in Malaysia and Indonesia to records. Stockpiles in Malaysia will continue to expand in October, November and December and may reach as high as 3 million tons by January, Mistry said.

Inventories in Indonesia have hovered between 3.5 million tons and 4 million tons since 2010 as against popular estimates of 1.5 million tons to 2 million tons, he said. Production in Indonesia may climb to 27.5 million tons in 2012, higher than the 27 million tons estimated on Sept. 6, while Malaysia’s output may be 18 million tons this year, less than the 18.2 million tons forecast previously, he said. “The supply position on palm oil is therefore extremely comfortable and is likely to remain that way for the next several months,” Mistry said.

“There is a slowdown in China, and Europe has slowed purchases for biodiesel. The discount between soybean oil and palm oil will further widen.” The gap between the two oils, which jumped to a four-year high this month, widened to $304.67 a ton on Sept. 21, data tracked by Bloomberg showed. The record is $493.76 in August 2008. Soybean oil and palm oil are used in foods and fuels. Global vegetable-oil supplies will increase by 3.05 million tons in 2012-2013, while demand may expand by 3.5 million tons, Mistry said. Soybeans may reach a record $20 a bushel in December or January and drop with the swelling of harvests in Brazil and Argentina, he said. Global consumption will drop about 3 million tons in 2012-2013 because of record prices, according to Thomas Mielke, executive director of Oil World.

James Fry Forecast

NEW DELHI, Sept 22 (Reuters) - Malaysian crude palm oil (CPO) prices may fall nearly 7 percent to 2,575 ringgit per tonne in the last quarter of 2012 from current levels if Brent crude oil prices come down to $95 per barrel, a top analyst said on Saturday. "I am bearish on crude oil prices. They should come down. Demand is slowing due to a slowdown in the global economy," James Fry, chairman of commodities consultancy LMC International, said at the Globoil India conference here.

He expects the CPO price in the fourth quarter (Oct-Dec) to be 2,285 ringgits if the crude price is $80 per barrel, more than 17 percent down from the current level, although he sees palm oil recovering to 2,450 ringgits in the first quarter of 2013.

"Eventually new supplies (deep sea, tar sands and shale oil) and weak demand growth, led by substitution by natural gas, will pull the market back to earth as oil stocks climb," he added. Vegetable oil prices benefit from higher crude levels as their use as biofuels, which are seen as greener alternatives to petrol and diesel, becomes more economically attractive.

"Crude oil is now the key to vegetable oil prices," Fry said in his presentation slides. The premium of CPO over petroleum prices has fallen sharply since July due to rising inventories, Fry said. "Mills must put oil into their tanks every day, regardless of the final demand. This makes them into permanent 'distress sellers' and helps explain why CPO always trades at a discount" (to other edible oils). The London-based analyst forecast Indonesia's palm oil output in 2012 could rise by 8.1 percent to 27.25 million tonnes, while Malaysia may see a 3 percent drop in it production to 18.34 million tonnes.

Today’s Support and Resistance for Benchmark December is located around 2550 and 2800 respectively.

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NEW YORK (Reuters) - Stocks could struggle to stay close to nearly five-year highs this week as worries mount about third-quarter earnings and the market appears primed for a pullback from recent stimulus-driven gains. The Dow Jones industrial average and the benchmark Standard & Poor's 500 index remain close to highs not seen since December 2007. The S&P 500 is up 16.1 percent since the end of 2011.

"I think the market certainly is ripe for a pullback. But whatever the pullback, it's going to be rather shallow," said Peter Cardillo, chief market economist at Rockwell Global Capital, in New York. "Any disappointment in key economic data that would reverse the market's feeling the economy has stabilized, I think could trigger a 2 to 4 percent pullback," he added. Some of that move was seen last week in stocks. The S&P 500 slipped 0.4 percent for the week.  The Dow industrials and the Nasdaq each finished the week down 0.1 percent. Besides August durable goods orders, data on personal income and spending is due this week, as well as new home sales and the final read on U.S. Gross Domestic Product for the second quarter.

The euro gained against other currencies including the dollar after a report European officials would reveal a rescue plan for Spain. Spain is mulling freezing pensions and picking up the pace of a  planned increase in the retirement age as it tries to curb spending and meet conditions of an anticipated global rescue package.  

Asian stocks ended a turbulent week on an upbeat note Friday, with the launch of Apple Inc.’s newest iPhone helping technology and telecom companies, while Japan Airlines Co. fell below its offer price as bilateral tensions between China and Japan weighed on airlines.

Stock index continue to correction as investors grew wary about the impending slow down on certain major Asia economy, namely China and Japan. Technically, the index futures might be topping out at the moment as market refuse to recover above the all time high last week. In Malaysia, market is likely to head into sideways movement with resistance area located around 1,620 while support is located around 1,580 level.

FCPO Related News

Malaysian palm oil futures dropped to their lowest this year on Thursday amid rising inventory levels. Futures tumbled to 2,804 ringgit per tonne, the lowest since October 2011, as global oilseed supplies were expected to pick up on expectations for crop yields across a drought-stricken U.S. Midwest to exceed forecasts.

Also weighing on prices was data that showed manufacturing in China contracted for the 11th month in a row in September, indicating the world's second largest economy remains on track for a seventh quarter of slowing growth. "There is excess palm oil at ports, storage tanks are full and production is doing well, so prices are under pressure," said a Singapore-based trader with a global commodities house."On top of that, the overall external market is also weak."

Exports remained strong according to latest cargo surveyor data, but traders said rising inventory levels that could surpass 2.2 million tonnes in September - which would be the highest level for this year - was weighing on the market. "Compared to last month, exports should be better. But the major thing is stocks have to go down for the market to move higher," said a trader with a foreign commodities brokerage in Malaysia. Cargo surveyor Intertek said export shipments rose almost 15 percent during Sept. 1-20 over the same period a month ago, while another cargo surveyor, SGS, reported an almost 13 percent increase from a month ago.    

In a bearish sign for palm oil, Brent crude eased below $108 a barrel on Thursday after the China data weakened sentiment in a market that is already reeling from Saudi Arabia's pledge to keep global crude oil prices low. In other vegetable oil markets, U.S. soy oil for December delivery dropped 1.3 percent. The most active January 2013 soy oil contract on the Dalian Commodity Exchange closed 0.3 percent lower. 

Palm's technical weakness could encourage investors to add short positions and drag values toward last year's low of MYR2,754/ton in the near term, a commodities analyst at a Kuala Lumpur-based investment bank says. At closing, the benchmark December contract on the Bursa Malaysia Derivatives Exchange had lost 1.4 percent to 2,820 ringgit ($918) per tonne. Today’s Support and Resistance for benchmark December is located around 2765 and 2845 respectively.

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NEW YORK, Sept 20 (Reuters) - The Dow industrials ended slightly higher on Thursday while the S&P 500 and the Nasdaq cut most of the day's losses in a sign that investor sentiment remains generally positive despite several weak manufacturing surveys from around the world.

Pockets of strength included housing, with an index of housing stocks up 0.8 percent, following Wednesday's gains on better-than-expected housing market data. The S&P energy index rose 0.4 percent, in sync with a rally in Brent crude oil prices after a three-day slide. The S&P utilities index also gained 0.4 percent.

The Dow Jones industrial average rose 18.97 points, or 0.14 percent, to close at 13,596.93. The Standard & Poor's 500 Index dipped 0.79 of a point, or 0.05 percent, to 1,460.26. The Nasdaq Composite Index fell 6.66 points, or 0.21 percent, to close at 3,175.96.

Manufacturing in China contracted for an 11th straight month in September, according to a private-sector survey of factory managers; in the euro zone, a downturn in activity in the service sector steepened this month at the fastest pace since July 2009.

Benchmark index KLCI may remain under selling pressure, with psychological support currently seen at 1600. Today’s resistance is located around 1638.

FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange gave up early gains to close barely lower Wednesday, pressured by ample supplies and an increase in U.S. soybean stockpiles as farmers harvest crops in the Midwest. The benchmark December contract on Bursa Malaysia Derivatives moved between positive and negative territory in the last 30 minutes of trade, ending at 2,859 ringgit a metric ton, down 0.1% from Tuesday’s close.

"Technical selling and profit-booking weighed on the market," a commodities broker in Kuala Lumpur said. "Investors should adopt a sell-into-rallies strategy amid abundant palm oil supplies in Malaysia." Analysts and planters said palm oil output in Malaysia, the world’s largest CPO producer after Indonesia, could reach its peak during the September-October period, potentially pushing end-September inventories to 2.2 million metric tons.

A Sabah-based planter tipped Malaysia’s September CPO output to rise 10% from 1.66 million tons in August. Palm oil stockpiles reached 2.12 million tons at end-August, a level not seen since last October. Separately, traders tipped Sept. 1-20 palm oil shipments at around 924,000 tons, up around 15% from the Aug. 1-20 period. Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. are due to issue Sept. 1-20 shipment data Thursday.  (Dow Jones Newswire)

In a bullish sign for palm oil, Brent crude oil prices rose on Wednesday after Japan's central bank became the latest country to further open the monetary taps to help stimulate its economy. In other vegetable oil markets, U.S. soyoil for December delivery rose 0.4 percent. The most active January 2013 soyoil contract on the Dalian Commodity Exchange closed 0.3 percent higher, recovering from previous day's near 1-month low.

     

Crude palm oil was likely to find an initial support at 2,840 ringgit a tonne, said Ker Chung Yang, an analyst with Phillip Futures, but prices were likely to fall further in tandem with soybeans.  "We may see some short-covering which may extend for another day, but we need to understand that the weakness is likely to persist for crude palm oil. The export numbers are likely to continue to be impressive, but we need to understand that the sharp gain is due to the low base from the previous month," said Ker.

Technicals showed Malaysian palm oil likely to retest a support level at 2,832 ringgit per tonne, driven by a downward wave capable of travelling to 2,719 ringgit per tonne, Reuters market analyst Wang Tao said.  

    

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NEW YORK, Sept 19 (Reuters) - U.S. stocks rose on Wednesday as investors dipped back into the market after the recent pullback from a rally that lifted the S&P 500 to just shy of five-year highs.

Housing stocks were among the day's leaders following stronger-than-expected data on home sales. The pace of U.S. home resales rose 7.8 percent in August, the fastest in more than two years. Housing starts also climbed, a hopeful sign that a budding housing market recovery is gaining traction.

"The recent pullback in prices was all about healthy profit-taking after the big rally we had last week," said Neil Massa, senior U.S. trader at MFC Global Investment Management, in Boston. "Now people are buying."

The Dow Jones industrial average rose 13.32 points, or 0.10 percent, to end at 13,577.96. The Standard & Poor's 500 Index added 1.73 points, or 0.12 percent, to finish at 1,461.05. The Nasdaq Composite Index gained 4.82 points, or 0.15 percent, to close at 3,182.62.

Last week, the S&P 500 reached its highest closing levels since December 2007 following a decision by the U.S. Federal Reserve to launch a new round of economic stimulus. The market pulled back or ended flat for two days, causing some investors to get back into stocks that had lost ground.

Malaysian shares are expected to rise slightly tracking mild gains on Wall Street Wednesday, following positive U.S. housing data. Todays Support and Resistance for FKLI is located around 1630 and 1650 respectively.

FCPO Related News

KUALA LUMPUR–Crude palm oil futures on Malaysia’s derivatives exchange ended sharply lower Tuesday, pressured by overnight weakness in Chicago soy oil futures and favorable weather in South America. The new benchmark December contract at Bursa Malaysia Derivatives ended 4.2% lower at 2,861 ringgit a metric ton after falling as much as 5.3%, to MYR2,827/ton, the benchmark’s lowest level since Aug. 15.

October soy oil on the Chicago Board of Trade was trading 0.7% lower at 54.60 cents a pound by the end of trade on BMD after shedding 3.5% overnight due to improved planting outlooks in South America and amid increased supply in the U.S. due to the ongoing soybean harvest there. "Aggressive selling from speculative funds dragged Malaysian palm oil lower," a Jakarta-based trading executive said. "Sentiment has turned bearish for palm [oil] on [the] improving oilseed supply situation and crude oil’s price weakness."

Resilient demand for the edible oil failed to turn the market around. Exports for the first half of September rose 12 percent from a month ago, cargo surveyor data showed. But the increased palm oil exports in the first 15 days of September compared with a month earlier could help limit further price falls on the BMD, a planter in Perak said, referring to export estimates by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd.  Intertek put Sept. 1-15 shipments at 680,112 tons, an increase of 12% while SGS put the figure at 660,955 tons, also up 12%.   

Technicals were bearish as, according to Reuters market analyst Wang Tao, palm oil will fall to 2,573 ringgit per tonne over the next four weeks, based on a wave analysis.

FKLI Related News

The Dow Jones Industrial Average rebounded to eke out a narrow gain, though most stocks finished lower as investors digested a downbeat earnings forecast from economic bellwether FedEx FDX -3.06%.  The Dow rose 11.54 points, or 0.1%, to 13564.64, rising for the fifth time in six sessions and bouncing back from Monday's 40-point decline.

European markets ended broadly lower. The Stoxx Europe 600 index declined 0.4% as Spain's reluctance to ask for a full bailout and economic-growth concerns weighed on sentiment. Separately, data showed that German economic expectations rose in September but the increase fell short of forecasts.

Asian markets also fell as anti-Japan protests in China, related to a dispute over islands in the East China Sea, led more Japanese-owned companies to suspend manufacturing operations. China's Shanghai Composite slid 0.9% and Japan's Nikkei Stock Average lost 0.4%.

(The Wall Street Journal)

Kuala Lumpur Index Futures spot month contract ended lower yesterday at 1633 and opened this morning at 1633.5. Today’s Support and Resistance is located around 1630 and 1655 respectively.

FCPO Related News

CPO price is expected to drop further due to weakness in the soy oil futures market, amid the ongoing US harvest activity and favourable weather in South America. Major support level for the benchmark December for today which was around 2,875~2870 has been broken, which signals further downside is likely following any Sell-off below 2,870 level. 

Palm oil exports during the first 15 days of September rose 12% from the previous month to 680,112 metric tons, cargo surveyor Intertek Agri Services said Saturday. Intertek put Aug. 1-15 shipments at 606,449 tons. However, the encouraging  export data did not manage to limit the decline in CPO price due to the weakness in soy oil market. Another surveyor, SGS (Malaysia) Bhd., issues Sept. 1-15 export data on Tuesday.

Crude palm oil futures on Malaysia’s derivatives exchange settled higher Friday, boosted by policy action announced by the U.S. Federal Reserve and expected strong first-half September palm oil exports from Malaysia, the world’s second-largest palm oil producer. The benchmark November contract at Bursa Malaysia Derivatives ended 0.8% higher at 2,936 ringgit a metric ton after trading in a MYR2,905-MYR2,945/ton range.  News of fresh economic stimulus was bullish for CPO prices, a Kuala Lumpur-based trader said, referring to the U.S. central bank’s announcement late Thursday that it will purchase $40 billion worth of mortgage-backed securities every month until the labor market improves.

Some traders had estimated that palm oil inventories could rise by a further 5% by end-September, as Malaysia is in its peak palm oil production months. End-August palm oil inventories rose 5.8% on month to 2.12 million tons, according to data from the Malaysian Palm Oil Board. However, rising demand could mean lower stocks, traders said, noting this was positive for CPO prices.

(Dow Jones Newswire)

Just last week, CPO prices were expected to be supported by tight vegetable oil markets–dwindling soybean supplies from the U.S. amid robust demand, according to a second Kuala Lumpur-based trader, noting that the U.S. already has sold 70% of the projected exports for the 2012-13 marketing year that started Sept. 1. "We believe crude palm oil prices are close to bottoming out and will regain upward trajectory once we are past the peak production in September and October," Macquarie Research said in a note Friday. CPO is priced attractively relative to soyoil, trading at a $300/ton price discount compared with the historical average of $150/ton, which should shift demand, it said.

FKLI Related News

NEW YORK, Sept 17 (Reuters) - U.S. stocks fell on Monday in light trading after a rally that drove the S&P 500 last week to its highest level in nearly five years and as falling oil prices hit energy shares.

The decline broke a four-day streak of gains for the S&P 500. On Friday, both the Dow and the S&P 500 ended at highs not seen since December 2007. The rally came a day after the Federal Reserve unveiled new stimulus measures that could keep equities buoyed for months. The Fed's action followed a decision by the European Central Bank to support debt-ridden euro-zone nations by purchasing their debt. Equities' move is mainly consolidation following last week's big move higher, said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.

Financials, which were among the biggest gainers late last week, were among the sectors leading Monday's decline. The S&P financial index fell 1.1 percent. Bank of America Corp shares lost 2.6 percent to $9.30. The market's losses were limited by Apple Inc, which hit another all-time session high of $699.80 with demand for its new iPhone 5 exceeding initial supply. The company booked 2 million orders in one day and pushed the delivery date for some pre-orders to next month. The stock rose above $700 after the bell; it closed at $699.78, up 1.2 percent.

Volume was lower than average, with about 5.64 billion shares traded on the New York Stock Exchange, the Nasdaq and the Amex, compared with the year-to-date average daily closing volume of 6.54 billion. Many participants were out on Monday for the observance of Rosh Hashana, the Jewish New Year. The Dow Jones industrial average slipped 40.27 points, or 0.30 percent, to end at 13,553.10. The Standard & Poor's 500 Index shed 4.58 points, or 0.31 percent, to 1,461.19. The Nasdaq Composite Index dropped 5.28 points, or 0.17 percent, to close at 3,178.67.

The day's economic data offered more evidence of weakness in the economy. Factory activity in New York state contracted for a second month in a row in September, with the Empire State "business conditions" index falling to its lowest level in nearly 3-1/2 years, according to a report on Monday from the Federal Reserve Bank of New York. A national manufacturing survey by an industry group earlier this month showed the sector contracted for a third month in August. Investors also focused on turmoil overseas. Protesters in Afghanistan and Indonesia burnt U.S. flags and chanted "Death to America" on Monday in renewed demonstrations over a film mocking the Prophet Mohammad.

Malaysia’s markets were closed Monday for a public holiday. At close, the FBM KLCI rose about 14.55 points to 1,642.95 while spot month contract surge about 20 points to 1,638.50. FKLI spot month contract opened slightly lower this morning at 1634 following consolidation in the US market after last week’s huge rally. Analysts view the previous corrections as a swift retracement in an up trending market. Today’s Support and Resistance is located around 1630 and 1655 respectively.