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Crude palm oil futures on Malaysia’s derivatives exchange declined Wednesday in a choppy session as investors stayed on the sidelines ahead of near-term external market developments, market participants said. The benchmark January contract at Bursa Malaysia Derivatives ended 0.2% lower at 2,496 ringgit a ton after moving in a MYR2,492-MYR2,529/ton range.

Trade is likely to remain muted in the near term due to "upcoming macro events, where the transition of power at the Party Congress of China will be a key focus along with the U.S. presidential election. These two events can dictate risk appetite across asset classes, including palm oil," said Ker Chung Yang, investment analyst at Singapore-based brokerage Philip Futures.

Investors are also on the lookout for the release of Chinese manufacturing data Thursday. China is the world’s largest palm oil consumer after India. Palm oil prices ended October on a positive note, with a monthly gain of 1.3%, as a pickup in export demand to Europe and India could help prevent further stock builds in the world’s no. 2 producer. Malaysian exporters with refineries overseas are also shipping as much oil as possible in the next few months, as a duty-free CPO export quota will be discontinued at the end of the year.

Stockpiles in October aren’t likely to surge sharply compared with the rise in supplies in September, Mr. Ker said. "I think firm exports have helped move excess inventories [out of Malaysia]," he added, tipping end-October stockpiles at 2.50 million tons, which would be a modest 0.8% gain from 2.48 million tons in September.

Cargo surveyor SGS (Malaysia) Bhd. said Malaysia exported around 1.57 million tons of palm oil in October, up 9.3% from a month earlier, while another surveyor, Intertek Agri Services, said shipments reached 1.60 million tons, an increase of 11%.          [Dow Jones Newswire]

"Based on the shipment number, we will still end up with a higher stockpile because October's production is still very high," said OSK Research analyst Alvin Tai. "Exports rising higher month-on-month is not surprising, but the quantum still needs to be stronger."

Palm oil dropped to a two-week low earlier this week after its biggest rival and top producer Indonesia planned to lower monthly export taxes in November after international prices fell this month. The lower taxes will lift margins for Indonesians and shift demand away from competing Malaysian products.

Officials in Jakarta said they will not alter their tax structure which is aimed at driving its domestic palm oil downstream industry. "The export tax structure is progressive and it has been adjusted to fluctuated palm oil prices in the international market," director general of agriculture-based industry Benny Wachjudi said at an industry meeting. "It is very different from the Malaysian government's export tax policy. I am sure Malaysian export tax policy will not last long because it is not adjusted to the development on palm oil prices in the international market."

U.S. soybeans rose on Thursday for a second day, supported by concerns over South American production and rumours of renewed Chinese demand. U.S. gasoline futures prices rose on Wednesday on concerns about East Coast supply shortages as the energy sector struggled to restore operations disrupted by massive storm Sandy. U.S. soyoil for December delivery inched up 0.7 percent in late Asian trade. The most-active May 2013 soybean oil contract on the Dalian Commodity Exchange rose 0.7 percent.

Asian shares fell on Thursday as investors waited for China's official manufacturing PMI for insight into whether growth in the world's second largest economy was bottoming out. Most commodities eked out small gains on Wednesday as markets started to recover from mammoth storm Sandy, but the sector ended the month weaker, with its biggest decline in five months. On Wednesday, Brent December crude oil fell 38 cents to settle at $108.70 per barrel. For the month, Brent fell 3.2 percent. U.S December crude rose 56 cents to settle at $86.24 a barrel, but stumbled 6.5 percent in October.     

Technicals showed that the bearish target of 2,379 ringgit per tonne for Malaysian palm oil has been adjusted to 2,468 ringgit based on its falling speed, said Reuters market analyst Wang Tao. Today’s Support and Resistance for benchmark January is located around 2490 and 2530  respectively.

[Reuters]

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NEW YORK (Reuters) - The stock market slowly returned to life on Wednesday after two days in the dark, in the wake of the massive storm Sandy that caused the market's first weather-related two-day closure since the late 19th century. The Dow and the S&P 500 closed little changed while the Nasdaq Composite edged lower in a session with slightly less than average volume.

The two-day weather-related break was the stock market's first multi-day closure for weather since 1888. Trading volume was average, with about 6.3 billion shares exchanging hands on the NYSE, Nasdaq and NYSE MKT. Daily average for 2012 through last Friday was 6.51 billion shares.

Unsurprisingly, investors made a knee-jerk move to buy companies that stand to benefit from home repairs. Dow component Home Depot climbed 2.2 percent to $61.38 while rival Lowe's rose 3.3 percent to $32.38. Generator manufacturer Generac Holdings shares surged 20 percent to $34, building on a rally that started before the storm hit. The company reported earnings Tuesday evening and said the rest of the year would be better than expected because of increased demand for home generators. "We're seeing reactions from Home Depot and the insurers. But I think these will be relatively short-lived," Weisberg said.

The Dow Jones industrial average dropped 10.75 points, or 0.08 percent, to 13,096.46 at the close. The Standard & Poor's 500 Index gained just 0.22 of a point, or 0.02 percent, to finish at 1,412.16. The Nasdaq Composite Index fell 10.72 points, or 0.36 percent, to end at 2,977.23. For the month of October, the Dow fell 2.5 percent, the S&P 500 lost 2 percent and the Nasdaq dropped 4.5 percent.

Shares of Netflix Inc rose as much as 22 percent before closing up 13.9 percent at $79.24 after activist investor Carl Icahn reported a stake of nearly 10 percent in the company, which offers subscriptions to watch movies and TV shows over the Internet and on DVDs. Ford Motor Co rallied 8.2 percent to $11.16 and was the NYSE's most-active stock after the automaker reported strong results while the market was closed. General Motors reported earnings that beat expectations, driving its shares up 9.5 percent to $25.50.

Weakness in Apple Inc, which announced management changes earlier in the week, weighed on the Nasdaq. The stock fell 1.4 percent to $595.32. Facebook shares slid 3.8 percent to $21.11 after the expiration of a lockup period that had prevented some employees from selling stock. Walt Disney Co agreed to buy filmmaker George Lucas's Lucas film Ltd and its "Star Wars" franchise for $4.05 billion in cash and stock, a blockbuster deal that includes the surprising promise of a new film in the series in 2015. Disney, a Dow component, fell 2 percent to $49.07.

Malaysia's index futures spot month contract opened slightly lower this morning  at 1672 as investors lock in profits after recent gains but could resume its upward trend amid supportive technical in the near term. Today’s Support and Resistance for November contract is located around 1,670 and 1,680  respectively.

FCPO Related News

KUALA LUMPUR–Crude palm oil futures on Malaysia’s derivatives exchange declined Tuesday, reflecting concerns about Europe’s debt crisis and rising palm oil inventories, market participants said. The benchmark January contract at Bursa Malaysia Derivatives ended 1.8% lower at 2,501 ringgit a ton after earlier tumbling 2.3% to MYR2,491/ton, the lowest since Oct 18.

Prices tracked weaker palm and soyoil futures on Dalian Commodity Exchange, and were weighed down by worries that lower CPO export taxes for November in Indonesia, the world’s biggest producer, could steer buyers away from Malaysia. End-October palm oil inventories in Malaysia are likely to hit a record around 2.55 million-2.60 million tons, capping palm oil’s upside in the near term around MYR2,600 a ton, a trading executive at a brokerage in Kuala Lumpur said.

"The only positive news is that stocks could’ve been higher, but firm exports this month helped" cap the increase, the executive said. Inventories hit an all-time high of 2.48 million tons at the end of September. Traders tip October exports at 1.62 million tons, compared with 1.43 million-1.44 million tons in September. Cargo surveyors SGS (Malaysia) Bhd. and Intertek Agri Services are scheduled to issue October shipment data Wednesday.      [Dow Jones Newswire]

Prices of the edible oil also came under pressure from weaker Brent crude as Sandy, one of the worst storms to hit the United States in years, shuttered U.S. refineries, curbing energy demand in the world's largest economy and weighing on other commodity markets. "The tax cut will hurt Malaysia's palm oil prices as Indonesia's palm oil becomes more competitive in the near future. Malaysian players will certainly hope that the government will do more to counter such an act from Indonesia."

Total traded volumes stood at 33,602 lots of 25 tonnes each, higher than the usual 25,000 lots. Brent crude hovered above $109 a barrel on Tuesday due to the storm, and analysts expect weaker crude oil to weigh on the whole commodities asset class. In other vegetable oil markets, U.S. soyoil for December delivery inched up 0.2 percent in early Asian trade. The most-active May 2013 soybean oil contract on the Dalian Commodity Exchange fell 0.3 percent.  

"At the moment, we don't see any supportive news for palm oil. Prices are likely to stay choppy in a range of 2,430 to 2,600 ringgit," said Phillip Futures analyst Ker Chung Yang in Singapore. Palm oil prices may still target 2,379 ringgit per tonne, as a rebound from the Oct. 3 low of 2,230 ringgit has been completed and a preceding downtrend has resumed, said Reuters market analyst Wang Tao. Today’s Support and Resistance for benchmark January contract is located around 2,475 and 2,510 respectively.     [Reuters]

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NEW YORK, Oct 30 (Reuters) - The U.S. stock market was closed for a second straight day on Tuesday as cash equity trading was canceled in the wake of Hurricane Sandy.     Tuesday's shutdown was the first time weather had resulted in a two-day market shutdown since the Great Blizzard of 1888.Exchanges expect to reopen on Wednesday.

NYSE Euronext said the New York Stock Exchange would open, although it will switch to fully electronic trading if necessary. Nasdaq OMX's Nasdaq Stock Market will also be operating on Wednesday, a source familiar with the matter said. Index futures stopped trading electronically at 9:15 a.m. on Tuesday (1315 GMT) and ended the session largely flat. S&P index futures ended 0.2 percent higher.

   

Futures will reopen at 7 p.m. ET (2300 GMT) for the overnight session during European and Asian hours, closing again at 9:15 a.m. Wednesday morning.    Sandy, a mammoth storm, slammed into a large swathe of the densely populated U.S. eastern seaboard on Monday, forcing hundreds of thousands to seek higher ground, halting public transport and closing schools, businesses, financial markets and government departments. At least 18 people died and more than eight million homes and businesses were without power.

Investors expect heightened volatility when markets do reopen as the two-day closure creates pent-up demand. Certain sectors are seen as especially tied to the fallout from the storm, which caused major flooding from storm surge during high tides, along with extensive damage from high winds and lashing rain. Disaster-modeling company Eqecat estimates Sandy caused between $10 billion and $20 billion in total economic damages, with $5 billion to $10 billion in insured losses.

Construction sectors as well as retailers such as Home Depot  may see a boost from the eventual rebuilding effort,though airlines, which were forced to cancel thousands of flights, could see sharp falls. Insurance companies will also be in focus.

"With winds 75 miles per hour along with flooding in the most populated area of the country, you could have an unparalleled loss picture for insurance companies," said Joe Heider, a Cleveland based wealth manager at Rehmann.     Compounding the issue, Sandy arrived in the middle of the corporate earnings season. While some companies, including Pfizer Inc, delayed releasing their results until the storm passed, others released theirs on schedule, including Ford Motor and TD Ameritrade.     With their results out but investors unable to trade on them, those stocks may see particular interest on Wednesday.

Stocks on Bursa Malaysia closed mixed yesterday with the FBM KLCI closed at a new high of 1,674.67, up 2.11 points or 0.13% from Monday's close after opening 1.74 points lower at 1,670.82, amid strong buying in key finance and plantation counters. Today’s Support and Resistance for  futures spot month contract  is located around 1669 and 1680 respectively.

FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange eased Monday as investors locked in profits after last week’s rally to a 1-month high and due to losses in other vegetable oil markets. The benchmark January contract at Bursa Malaysia Derivatives ended 2.4% lower at 2,540 ringgits a metric ton after moving in a MYR2,525-MYR2,554/ton range.

"Lower DCE soybeans and weakness in U.S. soy pressured CPO futures lower today," a trading executive in Kuala Lumpur said. But weather worries in key oil palm growing areas in Malaysia and firm export demand for the tropical oil could support the market, as market participants expect firm demand may prevent further stockpile builds.

Malaysia’s palm oil inventory levels rose to an all-time high of 2.48 million tons at the end of September. Palm oil will likely remain range-bound in the next session, as market participants keep a close watch on October export numbers due Wednesday for price direction.  

[Dow Jones Newswire]

SINGAPORE, Oct 29 (Reuters) - Malaysian palm oil futures dropped on Monday after a long weekend break, as losses in other vegetable oil markets during the holiday and an export tax cut by Indonesia prompted traders to book profit. Last Friday, U.S. soyoil lost 1 percent while the China soyoil contract edged down 1.4 percent. Malaysian financial markets were closed for the Eid al-Adha holiday.

Selling pressure also mounted after the midday break on news that Indonesia, the world's top palm oil producer, would cut its palm export tax for November, a move that could hamper demand for Malaysian products. Indonesia will cut the export tax to 9 percent, down from 13.5 percent in October, and lower the export tax for refined palm olein to 3 percent in November from 6 percent in October. "Part of the fall is due to the market catching up after the holiday. The significantly lower export duty by Indonesia also put some pressure on prices," said a trader with a foreign commodities brokerage in Malaysia.

The benchmark January contract on the Bursa Malaysia Derivatives Exchange slid 2.4 percent to close at 2,540 ringgit ($831) per tonne. Total traded volumes stood at 36,345 lots of 25 tonnes each, higher than the usual 25,000 lots. Palm oil prices rose to a near 1-month high at 2,615 ringgit last Thursday, after cargo surveyors reported higher Malaysia's palm exports for Oct. 1-25 compared to a month ago. Traders will be looking for more trading cues from the full-month exports figure for October on Wednesday.

Brent crude oil fell below $109 a barrel on Monday as refineries along the U.S. East Coast wound down operations ahead of the approach of Hurricane Sandy, reducing crude use in the world's largest oil consumer. In other vegetable oil markets, U.S. soyoil for December delivery edged down 0.7 percent in late Asian trade. The most-active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 1.4 percent lower.

Technicals were bearish as a bullish target at 2,676 ringgit per tonne has been aborted, and a target at 2,379 ringgit has been established, said Reuters market analyst Wang Tao. Today’s Support and Resistance is located around 2,500 and 2,550 respectively.

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NEW YORK (Reuters) - Stock index futures fell in a shortened session on Monday and cash equity trading was canceled as powerful Hurricane Sandy bore down on the U.S. East Coast, closing equity trading for Tuesday. Monday's shutdown was the stock market's first weather-related closure in 27 years. U.S. stock markets will remain closed on Tuesday, the operator of the New York Stock Exchange said, depending on the damage from the huge and dangerous storm on financial center New York City overnight and on Tuesday.

Index futures stopped trading electronically at 9:15 a.m. (1315 GMT), but will reopen at 7 p.m ET for the overnight session during European and Asian hours, closing again at 9:15 a.m. Tuesday morning. NYSE Euronext (NYX.N) and Nasdaq OMX Group (NDAQ.O) said they made their decision in consultation with industry executives and regulators, and intend to reopen Wednesday, conditions permitting. Sandy, a mammoth storm, took aim at the most densely populated U.S. Northeast Coast on Monday, forcing hundreds of thousands to seek higher ground, halting public transport and closing schools, businesses and government departments.

Italian political turmoil and Spanish hesitancy over seeking euro-zone assistance put the two countries on the front line of the region's debt crisis and back under market pressure on Monday as their leaders met in Madrid. "We have an illiquid market, we have a risk-off situation from overseas, and we have some issues going on in the States with Sandy, so that is impacting things a little more than expected," said David Lutz, managing director of trading at Stifel Nicolaus Capital Markets in Baltimore.

S&P 500 futures fell 4.9 points and were below 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 fell 69 points and Nasdaq 100 futures fell 15.75 points. Futures closed well off their session lows. S&P 500 futures fell more than 10 points at the intraday low. The storm forced the closure of U.S. stock markets on Monday, the anniversary of the 1929 stock market crash.

A market closure for more than a day may start causing problems for investors who need to trade in and out of positions, investors said. "If you go two days, you really start to create some serious financial stress for some players that need to get something done," said Jim Paulsen, chief investment officer of Wells Capital Management in Minneapolis. "A two-day closure will create more stress, and therefore will allow electronic trading. That's my best guess."

In Europe, Spanish and Italian bond yields rose and German Bund futures hit two-week highs on Monday, partly prompted by former Italian Prime Minister Silvio Berlusconi's threat to bring down the Rome government. Greece's foreign lenders have refused to make any further concessions on changes to labor laws contested by a junior coalition partner, the country's finance minister said on Sunday, prolonging an impasse on a crucial austerity package.

Athens has been locked in talks with its EU and IMF lenders on the austerity package for months, but a final agreement has been held up by the small Democratic Left party's refusal to back the new wage laws. European shares fell for the first time in four sessions on Monday, hit by worries over weak company results. The FTSEurofirst 300 index (.FTEU3) fell 0.3 percent to close at 1,093.57 points and the euro zone's blue-chip Euro STOXX 50 index <.STOXX50E> fell 0.7 percent to 2,478.84 points.

FCPO Related News

Crude palm-oil futures on Malaysia’s derivatives exchange rebounded Wednesday supported by an improvement in manufacturing data from China, the world’s largest palm-oil consumer after India, and forecasts for higher demand for exports. The benchmark January contract at Bursa Malaysia Derivatives ended 1.5% higher at 2,578 ringgit a metric ton after moving in a MYR2,551-MYR2,578 range.

The preliminary HSBC China Manufacturing Purchasing Managers Index rose to 49.1 in October compared with a final reading of 47.9 in September and is the highest reading since July, suggesting a likely further pick up in economic activity in the world’s second-biggest economy on the back of more accommodative monetary conditions and increasing infrastructure investment.

Market sentiment also got a boost from expectations that palm-oil shipments between Oct. 1 and Oct. 25 probably rose 10% to around 1.29 million tons, a trading executive at a Singapore-based bank said. The executive tipped palm oil to trade in a MYR2,550-MYR2,600/ton range as investors may square off positions ahead of the long weekend. Malaysian markets will be closed Friday for a public holiday.

Firm exports along with potential disruption to harvests from annual floods in important growing regions of Malaysia may prevent further buildup of stockpiles. These hit an all-time high of 2.48 million tons at the end of September. Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd., issue Oct. 1-25 shipments Thursday.      [Dow Jones Newswire]

In a bullish sign for palm oil, Brent crude rose on Wednesday, snapping a six-day losing streak, after economic data from China suggested a gradual recovery in the world's No. 2 oil consumer, though weak European data kept the gain slim. In other vegetable oil markets, U.S. soyoil for December delivery BOZ2 inched up 0.6 percent in late Asian trade. The most-active May 2013 soybean oil contract DBYcv1 on the Dalian Commodity Exchange closed 0.1 percent higher.     [Reuters]

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NEW YORK, Oct 24 (Reuters) - U.S. stocks ended lower for a second day on Wednesday, as investors soured on another round of underwhelming corporate results and the Federal Reserve said it would stick to its stimulus plan until the job market improves. The S&P 500 has lost 3.6 percent over the past five sessions, hurt by weak earnings outlooks and top-line revenue misses from large multinational companies. The index is now down 3.9 percent from its closing high of 1,465.77 set on Sept. 14.

The Fed, in its latest policy statement, said it would keep buying $40 billion in mortgage-backed debt per month to keep interest rates low until the job picture gets better. "Unemployment is staying where it is, new jobs are minimal, and the Fed is staying defensive," said Allan Flader, financial advisor at RBC Wealth Management, in Phoenix. "I would be surprised if they went to a neutral stance any time soon. You need to see more credible increases in employment, and it's just not happening yet." On Sept. 13, the Fed unveiled a third round of economic stimulus, or quantitative easing, known as QE3.

The Dow Jones industrial average shed 25.19 points, or 0.19 percent, to close at 13,077.34. The Standard & Poor's 500 Index dropped 4.36 points, or 0.31 percent, to 1,408.75. The Nasdaq Composite Index slipped 8.77 points, or 0.29 percent, to end at 2,981.70.

During the regular session, Facebook Inc shares soared 19.1 percent to $23.23 a day after the social networking company's quarterly results showed a surprising surge in mobile advertising revenue. Shares of Apple, scheduled to report after Thursday's close, rose 0.6 percent to $616.83. The day's other gainers included Dow Chemical Co, the largest U.S. chemical maker, which said late on Tuesday it would cut 5 percent of its work force and shut 20 plants to counter a slowing global economy. Its stock jumped 4.7 percent to $29.88. On the down side , shares of movie rental company Netflix tumbled 11.9 percent to $60.12 after it cut its subscriber forecast, and shares of data-storage equipment maker EMC Corp fell 0.9 percent to $24.46 after it cut its full-year outlook.

Homebuilders' stocks ranked among the session's best performers. An index of housing stocks shot up 0.7 percent. Shares of Pulte Group, one of the largest U.S. homebuilders, gained 0.8 percent to $17.45. Sales of new U.S. single-family homes jumped 5.7 percent in September to the highest level in nearly 2-1/2 years, offering more evidence that the housing market's recovery is improving.

U.S. crude futures fell for a fifth straight session on Wednesday as rising U.S. crude inventories and weak euro zone economic data offset supportive signs that Chinese petroleum demand could stage a recovery. Crude oil stocks in the United States jumped 5.9 million barrels last week, the U.S. Energy Information Administration (EIA) said in a weekly report, well above the expected increase of 1.9 million barrels in a Reuters survey of analysts.

0040 GMT [Dow Jones] Malaysia shares may rise but gains are likely to be limited following tepid U.S. stocks after the Fed reiterated its economic concerns, overshadowing positive housing data. "Given the underlying resilience and a gradual recovery in second and lower liners, there is a high chance that the KLCI can nudge higher towards 1672 and 1687 before a meaningful profit-taking consolidation emerges," says Hong Leong IB.

FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange ended lower Tuesday as investors booked profits but the downside appeared limited by concerns that annual floods in key growing regions could disrupt harvesting. The benchmark January contract at Bursa Malaysia Derivatives ended 1.4% lower at 2,540 ringgit a metric ton after moving in a range of MYR2,520-MYR2,560/ton.

A disruption of harvesting at a time of strong export demand may prevent a further buildup of stockpiles, which hit an all-time high of 2.48 million tons at the end of September. Prices aren’t likely to fall further because palm oil’s narrowing premium to crude oil has increased palm oil’s appeal for use in biodiesel. Palm oil generally trades at a premium of $10 a barrel to crude oil, but it has narrowed to $5.80 a barrel, making it viable for biodiesel, Alvin Tai, a senior analyst at OSK Investment Bank, said in a note.

"Unless external market conditions turn bearish, we think palm oil could trade around MYR2,400-MYR2,550/ton for the rest of holiday-shortened week," a physical market broker in Kuala Lumpur said. "Indian buyers have been buying Malaysian CPO so that has helped to underpin the market."               

[Dow Jones Newswire]

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NEW YORK (Reuters) - Stocks fell on Tuesday, driving the Dow industrials to the biggest drop since June 21, as weak results from index members DuPont and United Technologies showed profit growth is slowing. DuPont's stock lost 9.1 percent to $45.25 after the chemical company reported lower-than-expected quarterly profit and announced 1,500 job cuts. The stock was responsible for a 33-point drag on the Dow, which ended down more than 240 points.

The S&P materials sector index (REU:^GSPMI) fell 3 percent, largely because of DuPont. Outlooks have been weak as well. DuPont, United Technologies and 3M Co (MMM) all cut their outlooks on Tuesday. Shares of elevator and air conditioner manufacturer United Technologies were down 1 percent at $77.07 while 3M shares were down 4.1 percent at $88.73. The Dow Jones industrial average (^DJI) slid 243.36 points, or 1.82 percent, to close at 13,102.53. The Standard & Poor's 500 Index (^GSPC) fell 20.71 points, or 1.44 percent, to 1,413.11. The Nasdaq Composite Index (^IXIC) dropped 26.49 points, or 0.88 percent, to end at 2,990.46.

After the bell, shares of Facebook (FB.O) shot up 8.6 percent to $21.18 as the world's No. 1 online social network company posted a 32 percent jump in third-quarter revenue. Facebook ended the regular session at $19.50, up 0.9 percent. Shares of Netflix (NFLX.O) lost 16.5 percent to $57 after the bell after it reported subscriber additions at the lower end of its forecast for the U.S. TV and movie streaming business. Netflix ended regular trading at $68.22, up 0.5 percent. Overall earnings for S&P 500 companies are expected to fall 2.5 percent in the third quarter from a year ago, Thomson Reuters data showed.

In a development reviving investors' worry about Europe, Moody's downgraded five key Spanish regions by one or two notches late on Monday, citing their limited cash reserves and forthcoming bond repayments.

FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Monday as investors covered short positions due to expectations that firm export demand the rest of the month could help reduce end-month inventory levels. The benchmark January contract at Bursa Malaysia Derivatives ended 3% higher at 2,577 ringgit a metric ton after moving in a range of MYR2,497-MYR2,580/ton.

Strong Oct. 1-20 exports prompted some market participants to lower their stock projections for end-October to 2.5 million tons, down from previous estimates of 2.70-2.80 million tons, a Singapore-based trading executive said. Cargo surveyor Intertek Agri Services last week said palm oil exports during the Oct. 1-20 period rose 14% from the same period the previous month to 1.06 million tons. Another surveyor, SGS (Malaysia) Bhd., Monday put exports for the period at 1.05 million tons, an increase of 17%.

End-October stockpiles of 2.5 million tons would represent a modest 0.8% rise from the previous month, compared with a 17% jump to 2.48 million tons as of end-September. "Some speculative investors have initiated fresh long positions in BMD Crude Palm Oil (CPO) after a sharp selldown earlier this month, which helped to prop up the market today," a dealer at a Kuala Lumpur-based investment bank said.     [Dow Jones Newswire]

Palm, the world’s most-consumed cooking oil, is set to rally as much as 21 percent in the next eight months as a pickup in global demand and a decline in output reduce record stockpiles, according to Sime Darby Bhd. (SIME). Futures in Malaysia, the global benchmark, may range from 2,800 ringgit ($916) a metric ton to 3,100 ringgit in the first half of 2013, said Franki Anthony Dass, executive vice president at Sime Darby Plantations Sdn., a unit of the world’s biggest listed producer. The commodity may trade between 2,400 ringgit and 2,700 ringgit until the end of this year as demand recovers before the festival season in India, Dass said Oct. 19.

Some of the inventories may be depleted when India restocks before the Diwali festival on Nov. 13, and as biodiesel demand rises in Europe as the winter months approach, said Dass, who’s been in the industry for 30 years. Less production expected in the first quarter would also boost prices, he said. Output is typically at the lowest level in January and February. The slowdowns in Europe and China, the biggest cooking-oil consumer, have failed to cut demand for food, including palm oil-based products, and prices will lure buyers, he said.

“In China, the economy can slow down, but the Chinese don’t stop eating,” Dass said. “The demand for food will always be there and China will pick up again. The economic slowdown for China is only disrupting the pricing.” Malaysia’s move to cut export taxes will benefit producers with refineries and help them compete with supplies from Indonesia, Dass said. “The move by the government is positive to reduce the stocks, and makes the feedstock price competitive and improves our refinery margins,” he said.  
[Dow Jones Newswire]

Technically, the benchmark Jan has every reason to go up further on short term as it has breached above the immediate resistance point around 2,530 level yesterday. Volume and open interest was also recorded higher and more upside is likely if  the benchmark Jan manage to breach above psychological resistance around 2,600 level for today’s session. Today’s Support and Resistance is 2530 and 2600 respectively.

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NEW YORK—U.S. stocks rallied in the last hour of trading to eke out slim gains, as investors weighed corporate earnings reports and shrugged off a reduced profit forecast from industrial bellwether Caterpillar CAT +1.45%.  The Dow Jones Industrial Average rose 2.38 points, or less than 0.1%, to 13345.89. The blue-chip benchmark rebounded from losses of as much as 108 points, following a 205-point drop on Friday. The Standard & Poor's 500-stock index tacked on 0.63 point, or less than 0.1%, to 1433.82. Technology shares led gains across four of the index's 10 sectors. The Nasdaq Composite Index rose 11.34 points, or 0.4%, to 3016.96.

"One thing this market has shown me is a remarkable resilience," said Uri Landesman, president of New York hedge fund Platinum Partners, which oversees more than $1 billion in assets. "The bulls have weathered every single haymaker. I would have expected it to go down, but it really hangs in there." The Federal Reserve and other central banks around the world have stepped up efforts in recent months to bolster the economy by buying bonds, helping keep returns for such assets at historic lows. Monday, the price of the benchmark U.S. Treasury note fell, pushing the yield up to 1.81%.

Caterpillar rose after the world's largest heavy-machinery maker by sales reported a third-quarter profit that topped analysts' forecasts. Caterpillar reduced its 2012 earnings and revenue outlook given a weaker-than-anticipated global economy. In other corporate news, Monster Beverage MNST -14.23%posted the biggest drop among S&P 500 components after the New York Times reported the Food and Drug Administration has received reports of five deaths "possibly linked to" an energy drink made by the company. A Monster spokeswoman said the company was not aware of any FDA reports about deaths after people consumed its popular energy drinks, aside from one pertaining to a girl whose mother is suing the company.

European markets slipped. The Stoxx Europe 600 fell 0.4% as investors digested U.S. corporate results and a meeting of European Union leaders last week about the formation of a banking supervisor for the region. Asian markets opened broadly lower in response to U.S. weakness in the previous sessions and disappointing Japanese trade data. Markets rebounded to close mixed as a lower yen helped to keep Japan's win streak alive. The Nikkei Stock Average rose 0.1% to post its sixth-consecutive gain. China's Shanghai Composite rose 0.2% while Australia's S&P/ASX 200 fell 0.7%.

October gold futures moved up 0.1% to settle at $1,725.10 an ounce. The dollar lost ground against the euro but rallied against the yen.  U.S. crude futures ended lower on Monday as the November contract expired, with concerns about a slowing global economy and an expected pipeline restart pressuring prices and offsetting supportive worries about Middle East turmoil and the potential threat to the region's oil supply.      [Wall Street Journal]

Malaysia's index futures spot month contract opened slightly  lower this morning  as investors book profits  following the market’s recent rally. The selling pressure may continue ahead of the long weekend.  Today’s Support and Resistance is located around 1655 and 1670 respectively.

FCPO Related News

Malaysia’s palm oil exports during Oct. 1-20 rose 14% from the same period a month earlier to 1.06 million metric tons, cargo surveyor Intertek Agri Services said late Friday. The figure matched market expectations of 1.05 million tons. Another surveyor, SGS (Malaysia) Bhd., is scheduled to issue Oct. 1-20 shipment data Monday.

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Friday, underpinned by short covering ahead of the weekend and likely higher exports. The benchmark January contract at Bursa Malaysia Derivatives ended 0.2% higher at 2,501 ringgit a metric ton after moving in a MYR2,492-MYR2,524 range.

Traders expect palm oil exports during the Oct. 1-20 period to rise 14%-18% on month to 1.06 million tons, ahead of demand reports by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. Saturday and Monday, respectively.  Intertek put Sept. 1-20 palm oil exports at 928,110 tons while SGS put exports at 900,450 tons. Shipments of palm oil could rise in the next few weeks amid increased demand from India and as exporters with overseas refineries ship out more palm oil following a decision by the Malaysian government to revise the current CPO export tax of 23% to a graduated basis and abolish duty-free CPO export quotas.

Rabobank, however, said in a note that the expected rise in exports may not be enough to draw down palm oil stockpiles, which had risen to an all-time high of 2.48 million tons in the world’s No. 2 CPO producer. The bank lowered its CPO price forecast for the October-December period to MYR2,600/ton from a previous forecast of MYR2,800/ton.     [ Dow Jones Newswire ]

Malaysian palm oil futures rose on Friday, with market players confident of a recovery in demand thanks to strong Malaysian exports in the first half of the month and a major festival next month. "There are more purchases from India and China – India especially - because Deepavali is coming soon. They need to stock up more on palm oil," said Malaysia's Public Investment Bank analyst Chong Hoe Leong, referring to the Hindu festival of lights set for Nov. 13.

The analyst added that the current crude palm oil price is quite attractive for purchase because it's at the low base, but warned that inventory levels are expected to stay consistently high for the remainder of the year. Total traded volumes stood at 27,875 lots of 25 tonnes each, just slightly higher than the usual 25,000 lots. For the week, the edible oil was almost flat, as concerns over record stocks offset expectations of stronger demand.

However, inventories remain worrying as palm oil production shows no signs of slowing, and  Malaysia struggles to push out shipments quicker amid weaker global economic growth. "For next year, it is a bit challenging for palm oil because we can see a slowdown in market activity especially in the major consuming countries," Chong said. "That will be the major concern for the palm oil market, despite Malaysia recently imposing a lower tax structure starting from next year," he added, referring to the tax cut from the current level of 23 percent per tonne.

In a bullish sign for palm oil, Brent crude futures held steady at above $112 a barrel on Friday, but analysts and traders said a move to the downside was likely because the UK's Buzzard oilfield was expected to restart this weekend while the demand outlook remained weak. In other vegetable oil markets, U.S. soyoil for December delivery fell 0.2 percent in late Asian trade. The most-active May 2013 soybean oil contract on the Dalian Commodity Exchange were almost flat.      [Reuters]

Today’s Support and Resistance level for benchmark January contract is located around 2475 and 2530 respectively.

AMSTERDAM, Oct 19 (Reuters) - Steep falls in palm oil prices are making it more attractive than other vegetable oils for use in biodiesel production, offsetting weaker demand from Europe's food industry, European refiners said. Palm oil prices in Europe's vegetable oils market have shed 20 percent since January, weighed by slowing economic growth coupled with bigger output from Indonesia and Malaysia, which together account for 90 percent of global production.

Traders and refiners say the lower prices have already triggered more demand from the biodiesel industry in the European Union. One European refiner said his refinery had seen two-fold growth in orders from the biodiesel sector in the past month. "Demand from the biodiesel industry is very strong. The discount to soyoil and rape oil has widened and producers turn more to palm oil," he said.

Biodiesel, which can be used as a substitute for mineral diesel, can be made using vegetable oils such as palm oil, rapeseed oil or soybean oil. Other possible feedstocks for the biofuel include animal fats such as tallow. Some refineries can switch the blend of oils they use based on price although there have been concerns that palm oil may be less suitable as a feedstock during winter in northern Europe due to concerns it may solidify at low temperatures. Last year, the European Union imported 5.46 million tonnes of palm oil of which 1.44 million tonnes, or 26 percent, was used for biodiesel production, while the rest was used for food or cosmetic products, statistics from analyst Oil World showed.

The gap between palm oil and soyoil, which is more expensive, rose well above $300 per tonne in October from $145 in January. Crude palm oil for November shipment was offered at $835 per tonne, cif Rotterdam, on Friday while EU soybean oil was quoted at 915 euros ($1,193) per tonne, fob exmill. Palm oil's discount to rapeseed oil, which is also used in biodiesel production in Europe, has more than doubled to $371 a tonne, from $144 in January. The widening gap is due to a surge in soybean prices to record highs this summer as drought hit the world's major exporter, the United States, damaging yields. This has pushed up prices throughout the oilseed sector up from July through September, with soyoil and rape oil prices rising at a faster pace than palm oil.

CRISIS WEIGHS ON PALM OIL IN FOOD

Traders said demand for palm oil - which is used in the food industry for products including doughnuts, biscuits, margarine, cereals and chocolate bars - was hit in eastern and southern Europe by the economic crisis. "I was in Spain last week. Unemployment there is nearly 25 percent. People have to think if they are going to pay their electricity bill or eat a doughnut. So at the end of the day they pay the bill and don't have a doughnut," another refiner said.

"People don't have money and they are cutting consumption of luxury goods. But lower use of palm oil in food in the EU is compensated with higher demand from biodiesel industry." Prices of palm oil are being pressured by slowing economic growth in the world's top buyers, China and India, traders and analysts said.

In addition, record high global grain prices have intensified calls for changes in EU and U.S. biofuel policies, which have been criticised for snatching away land that should be used for food. To that end, a decision to limit crop-based biofuels could affect palm oil consumption in future, traders said, as more sophisticated technologies develop for second-generation plants using waste or agricultural residues to make fuel. New EU rules to limit how much food can be made into biofuels are "not perfect" and make it harder to achieve overall goals on switching to low carbon energy, European Commissioners said on Wednesday.

But for producers of bioethanol, which had expected to increase their share of the biofuel market, the proposals could lock in the dominance of biodiesel. Bioethanol, generally made from grains or sugar crops, is a substitute for gasoline. "If you know the fuels market, we in Europe are hugely short on diesel, and oil companies want to fill the gap with biodiesel as much as possible," Rob Vierhout, secretary general of EU bioethanol lobby ePURE, said. (Additional reporting by Gus Trompiz in Paris; Additional reporting by Barbara Lewis in Brussels; Editing by Veronica Brown and Anthony Barker)

FKLI Related News

NEW YORK, Oct 19 (Reuters) - U.S. stocks suffered their worst day since late June on Friday, after bellwethers General Electric and McDonald's extended a string of disappointing earnings. The Nasdaq ended down 2.19 percent, dragged lower for a second day by Google's weak results. Microsoft dropped 2.9 percent to $28.64 after it said profits fell on poor sales of PCs. Google's stock lost 1.9 percent to close at $681.79.

For the Dow, Friday's decline marked its worst day since June 21 - with the sell-off coming on the 25th anniversary of Black Monday, the Dow's worst single-day percentage loss ever. For Wall Street, corporate America's top-line figures are of particular concern. The beat rate for revenue forecasts is just 41.4 percent, compared to the long-term average of 62 percent, according to Thomson Reuters data.

General Electric Co shares fell 3.4 percent to $22.03. Quarterly earnings met Wall Street's expectations, but revenue fell short of estimates. GE, however, stood by its full-year earnings forecast. "McDonald's, Chipotle, Coca-Cola have all been slammed. And Wal-Mart, Target, even Dollar Stores are getting hit. That's tough to stomach because across income levels, everything is sharply lower."

The Dow Jones industrial average tumbled 205.43 points, or 1.52 percent, to 13,343.51 at the close. The Standard & Poor's 500 Index dropped 24.15 points, or 1.66 percent, to 1,433.19. The Nasdaq Composite Index slid 67.24 points, or 2.19 percent, to close at 3,005.62.

"This sell-off is definitely earnings-driven, but there is also an element of profit taking after several strong days," said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York. "But it is a very quiet crash, coming on the anniversary of the 1987 collapse."

The KLCI may ease this week, as investors may lock in gains ahead of a public holiday next Friday; she tips the benchmark index to trade in a 1655-1667 band this week.