FCPO Related News (Mon, Dec 31)

SINGAPORE, Dec 28 (Reuters) - Malaysian palm oil futures touched a near two-month high on Friday, posting a second straight weekly gain as traders expect record stocks in the world's No.2 producer to ease on lower production and higher shipments. Exports rose slightly for the first 25 days of December from the same period a month ago, thanks to larger purchases from India and the United States, cargo surveyor data showed.

On top of that, heavy rains that could bring floods to key oil palm producing regions in the Southeast Asian country sparked concerns of supply disruptions , raising hopes that inventory levels could fall in December. "The current growing concern is the monsoon that is hitting hard on the east coast and southern part of Malaysia. This theme is likely to play out at least until the second week of January," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore. "On the macroeconomic front, it seems like the current push towards the 2,500-ringgit level has brushed aside concerns of a fiscal cliff," he added.

U.S. President Barack Obama and lawmakers are launching a last round of talks to reach a deal to avoid the so-called fiscal cliff before a New Year's deadline, failing which the world's largest economy may slip back into recession and hurt global commodity demand. The benchmark March contract on the Bursa Malaysia Derivatives Exchange gained 0.5 percent to close at 2,494

ringgit ($815) per tonne, off an earlier high of 2,515 ringgit per tonne, a level last seen on Nov. 2.

Total traded volumes stood at 31,099 lots of 25 tonnes each, higher than the usual 25,000 lots. For the week, palm oil prices climbed 3.6 percent, extending last week's gain that came after four straight weekly losses.     Traders are hoping that a lower export tax for crude palm oil starting January could spur more demand. Malaysian cargoes are likely to be cheaper than rival Indonesia's with the former setting its January export tax rate at zero compared to the latter's 7.5 percent.    

Brent crude edged down slightly on Friday after earlier climbing above $111 per barrel. In competing vegetable oil markets, U.S. soyoil for March

delivery rose 0.9 percent in late Asian trade. The most active May soybean oil contract on the Dalian Commodity.

Today’s Support and Resistance for benchmark March contract is located around 2,475 and 2,517  respectively.

FKLI  Related News (Mon, Dec 31)

NEW YORK (Reuters) - Stocks fell for a fifth straight day on Friday, dropping 1 percent and marking the S&P 500's longest losing streak in three months as the federal government edged closer to the "fiscal cliff" with no solution in sight. President Barack Obama and top congressional leaders met at the White House to work on a solution for the draconian debt-reduction measures set to take effect beginning next week. Stocks, which have been influenced by little else than the flood of fiscal cliff headlines from Washington in recent days, extended losses going into the close with the Dow Jones industrial average and the S&P 500 each losing 1 percent, after reports that Obama would not offer a new plan to Republicans.

The Dow closed below 13,000 for the first time since December 4. "I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, managing partner at Direct Access Partners LLC in New York. "He's going to force the House to come to him with something different. I think that's a surprise. The entire market is disappointed in a lack of leadership in Washington." In a sign of investor anxiety, the CBOE Volatility Index (.VIX), known as the VIX, jumped 16.69 percent to 22.72, closing at its highest level since June. Wall Street's favorite fear barometer has risen for five straight weeks, surging more than 40 percent over that time.

The Dow Jones industrial average (^DJI) dropped 158.20 points, or 1.21 percent, to 12,938.11 at the close. The Standard & Poor's 500 Index (^GSPC) lost 15.67 points, or 1.11 percent, to 1,402.43. The Nasdaq Composite Index (^IXIC) fell 25.59 points, or 0.86 percent, to end at 2,960.31. All 10 S&P 500 sectors fell during Friday's regular trading, with most posting declines of 1 percent, but energy and material shares were among the weakest of the day, with both groups closely tied to the pace of growth. Trading volume was light throughout the holiday-shortened week, with just 4.46 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT on Friday, below the daily average so far this year of about 6.48 billion shares.  

Highlighting Wall Street's sensitivity to developments in Washington, stocks tumbled more than 1 percent on Thursday after Senate Majority Leader Harry Reid warned that a deal was unlikely before the deadline. But late in the day, stocks nearly bounced back when the House said it would hold an unusual Sunday session to work on a fiscal solution.

Positive economic data failed to alter the market's mood. The National Association of Realtors said contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, while a report from the Institute for Supply Management-Chicago showed business activity in the U.S. Midwest expanded in December. "Economic reports have been very favorable, and once Congress comes to a resolution, the market should resume an upward trend, based on the data," said Weiss, who helps oversee about $125 billion in assets. "All else being equal, we see any further decline as a buying opportunity."

FKLI spot month opened lower this morning at 1683.50 on investors' concern that Washington lawmakers will fail to reach a budget deal before a self-imposed year-end deadline. Today's Support and Resistance for December contract is located around 1,672 and 1,690 respectively.

FCPO Related News (Fri, Dec 28)

KUALA LUMPUR, Dec 27 (Reuters) - Malaysian palm oil futures climbed to a five-week high on Thursday on expectations for stronger demand and as monsoon-driven floods in the country's key producing regions sparked concerns of supply disruptions. Malaysian crude palm oil cargoes are likely to be cheaper than rival Indonesia's with the former setting its January export tax rate at zero compared to the latter's 7.5 percent.

The price advantage could spur demand for Malaysian crude palm oil at a time when production is seasonally lower and faces potential disruption from heavy rains, lifting hopes that record stocks could come down after driving down prices by 22 percent this year. "The gains today are mostly headline driven with the flood news and all that, although it (the flood) has been easing a bit after Christmas," said a dealer with a foreign commodities brokerage in Malaysia. "There has also been active buying of palm as traders attempt to narrow its price gap to soybean oil at around a $280 per tonne level."

The benchmark March contract on the Bursa Malaysia Derivatives Exchange rose to 2,484 ringgit ($810) per tonne the highest level seen since Nov. 20 -- before settling at 2,479 ringgit, two percent higher than previous day's close. Total traded volumes stood at 37,912 lots of 25 tonnes each, higher than the usual 25,000 lots.

Malaysian palm oil futures are expected to recover in the first quarter of next year even after the market faces its biggest yearly loss since 2008 on expected stronger demand for crude palm oil. Exports in the first 25 days of December rose as much as 3 percent due to bigger purchases from India, the world's top edible oil importer, and the United States, cargo surveyor data showed. 

Brent crude oil slipped below $111 a barrel as nervous investors watched talks to avert a U.S. budget crisis that could push the world's biggest economy back into recession. In other competing vegetable oil markets, U.S. soyoil for January delivery rose 0.9 percent in late Asian trade on expectations of strong Chinese food demand. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange rose 0.5 percent.     

Technical analysis showed that palm oil is expected to end the current rebound around 2,615 ringgit and fall to its Dec. 13 low of 2,217 ringgit over the next three months.           [Reuters]

Today’s Support and Resistance for benchmark March contract is located around 2,440 and 2,510 respectively.

FKLI Related News (Fri, Dec 28)

NEW YORK (Reuters) - Stocks fell for a fourth day on Thursday, but recovered most of their losses after the House of Representatives, in the barest sign of progress, said it would come back to work on avoiding the "fiscal cliff" this weekend. It was a jittery session for stocks, with shares falling more than 1 percent after Senate Majority Harry Reid warned a deal was unlikely before the deadline, only to rebound merely on the news that the House would reconvene Sunday, a day before the December 31 "cliff" deadline.

The market has been prone to quick reactions to headlines and those moves have sometimes seemed more dramatic because of reduced trading volume. About 5.18 billion shares changed hands on the New York Stock Exchange, the Nasdaq and the NYSE MKT, well below the daily average so far this year of about 6.48 billion shares. Investors are looking for any hint that lawmakers will avert the $600 billion in tax hikes and spending cuts that will start to take effect next week and could push the U.S. economy into recession.

In a sign of the anxiety, the CBOE Volatility Index (.VIX), or VIX, rose above 20 for the first time since July, suggesting rising worries, but ended up finishing the day down 0.4 percent as the stock market rebounded. Stocks in the materials and the financial sectors, which are more vulnerable to the economy's performance, bore the brunt of the selling before recovering. Shares of Bank of America (BAC.N) fell 0.6 percent to $11.47 while Freeport-McMoRan Copper & Gold (FCX.N) fell 0.7 percent to $33.68.

Some of 2012's biggest gainers bucked the broader trend and rallied, a sign of year-end "window dressing." Expedia Inc (EXPE) was the S&P 500's top percentage gainer, climbing 4.1 percent to $60.30. The price of the online travel agency's stock has doubled this year. The Dow Jones industrial average (^DJI) slipped 18.28 points, or 0.14 percent, to 13,096.31 at the close. The Standard & Poor's 500 Index (^GSPC) declined 1.73 points, or 0.12 percent, to end at 1,418.10. The Nasdaq Composite Index (^IXIC) dropped 4.25 points, or 0.14 percent, to close at 2,985.91.

The four-day decline marked the S&P 500's longest losing streak in three months. The index has lost 1.8 percent over the period as investors grapple with the possibility that a deal may not be reached until next year. President Barack Obama arrived back in Washington from Hawaii to restart stalled negotiations with Congress. Economic data seemed to confirm worries about the impact of the fiscal cliff on the economy. The Conference Board, an industry group, said its index of consumer confidence in December fell to 65.1 as the budget crisis dented growing optimism about the economy. The gauge fell more than expected from 71.5 in November. However, the job market continues to mend. Initial claims for unemployment benefits dropped 12,000 to a seasonally adjusted 350,000 last week and the four-week moving average fell to the lowest since March 2008.

Decliners outnumbered advancers on the New York Stock Exchange by a ratio of about 8 to 7, while on the Nasdaq, about 14 stocks fell for every 11 that rose.

Stocks on Bursa Malaysia ended in positive territory yesterday on last-minute buying in select heavyweights. FKLI spot month contract opened higher this morning at 1679. Today’s Support and Resistance for January contract is located around 1675 and 1695 respectively.

MERRY CHRISTMAS !




FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange rose Monday in light trade as investors continued to cover short positions ahead of the Christmas holiday Tuesday. The benchmark March contract on the Bursa Malaysia Derivatives exchange ended 0.8% higher at MYR2,428 ringgits a metric ton after trading in a tight MYR2,411-MYR2,437/ton range. The contract ended 3.8% higher Friday.

Soyoil futures and weather-related supply risks also provided support, market participants said. January soyoil futures on the Chicago Board of Trade settled 1.7% higher at 48.71 cents a pound on Friday. Malaysia’s weather office said in an updated advisory Sunday that rainfall is expected over the major oil palm growing states of Johor and Pahang until Wednesday, which can cause floods over low-lying areas. Harvesting rounds could slow down and transportation of the cooking oil from refineries to ports might get delayed if rains persist, a Kuala Lumpur-based trader said, adding that this may push palm oil prices higher.

Investors are keenly awaiting Malaysia’s Dec. 1-25 palm oil exports data from cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. scheduled for Wednesday. Prices could rise if the data show exports accelerated in the period, participants said. Malaysia’s Dec. 1-20 palm oil exports fell 1.9% from a month earlier to around 1 million tons, cargo surveyor Intertek Agri Services said Thursday. But another cargo surveyor, SGS (Malaysia) Bhd., said Dec. 1-20 exports rose 0.5% to about 1.02 million tons.

However, palm oil may not hold on to gains for long as some profit taking is expected to set in once investors return from Christmas holidays. Open interest on the BMD was 172,313 lots, versus 186,040 lots Friday. One lot is equivalent to 25 tons. A total of 18,637 lots of CPO were traded versus 33,240 lots Friday.           [Dow Jones Newswire]

FKLI Related News (Tues, Dec 25)

NEW YORK, Dec 24 (Reuters) - U.S. stocks
edged lower on Monda as caution over the potential for volatility driven by worries about the U.S. "fiscal cliff" dampened enthusiasm at the start of a seasonally strong period for equities. Investors are betting Congress will reach a deal to avert most of the austerity measures due to come into force at the start of next year. That has led to the best year for stocks since the post-financial crisis rebound. But those gains may be quickly reversed if a deal is not reached soon.

The S&P 500 index posted its biggest drop in more than a month on Friday as a Republican plan to avoid the cliff - $600 billion in tax hikes and spending cuts that could tip the U.S. economy into recession - failed to gain traction on Thursday night. Sharp moves like that highlight how headlines from Washington can whipsaw markets, especially during the thinly traded period over the Christmas holiday. Still, with the S&P 500 up 0.7 percent in December and on course for its strongest month since September, some analysts are predicting that stocks will find their footing during a market seasonality known as the "Santa Claus rally."

The Santa seasonality covers the last five trading days of the year and the first two of the new year. Since 1928, the S&P 500 has averaged a gain of 1.8 percent during this period and risen 79 percent of the time, according to data from PrinceRidge. The Dow Jones industrial average dropped 51.76 points, or 0.39 percent, to 13,139.08. The Standard & Poor's 500 Index fell 3.49 points, or 0.24 percent, to 1,426.66. The Nasdaq Composite Index lost 8.41 points, or 0.28 percent, to 3,012.60. The S&P 500 is up more than 13 percent for the year, having recovered nearly all the losses suffered in the wake of the U.S. election. The yearly gain would be the best since 2009.

Some U.S. lawmakers expressed concern on Sunday the country would go over the cliff, as some Republicans charged that was President Barack Obama's goal. Talks are stalled with Obama and House of Representatives Speaker John Boehner out of Washington for the holidays. he said. Congress is expected to return to Washington next Thursday as President Barack Obama

returns from a trip to Hawaii. As the deadline draws closer, a 'stop-gap' deal appears to be the most likely outcome of any talks.

Trading volume was muted, with U.S. equity markets closing at 1 p.m. (1800 GMT) ahead of the Christmas Day holiday on Tuesday. In addition, a number of European markets operated on a shortened session, with other markets closed. U.S. retailers may not see a sales surge from this weekend as ho-hum discounts and fears about imminent tax hikes and cuts in government spending give Americans fewer reasons to open their wallets in the last few days before Christmas.

FCPO Related News (Mon, Dec 24)

Crude palm oil futures on Malaysia’s derivatives exchange ended sharply higher Friday as investors covered short positions ahead of the weekend and before Christmas Day closing. The benchmark March contract on Bursa Malaysia Derivatives ended 3.8% higher at 2,408 ringgit a metric ton, close to the intraday high of MYR2,410/ton. BMD will trade Monday, close Tuesday, and reopen Wednesday.

Concern over China canceling U.S. soybean orders was brushed aside as traders pinned hope on a recovery for palm oil demand, a Kuala Lumpur-based trader said. The U.S. Department of Agriculture Thursday said China, the world’s largest soybean importer, canceled orders for 540,000 tons. It also on Tuesday said China had canceled orders for 300,000 tons.

Demand for the oilseed is slowing, but exports of palm oil–particularly to price sensitive consumers India and Pakistan–are likely to rise due to palm oil’s widening discount to soyoil, another Kuala Lumpur-based trader said. The palm oil-soyoil differential is usually around $150-$200/ton, but is presently more than $350/ton, he said. Weather-related supply risk also underpinned palm oil prices, market participants said.

Palm oil shipments could be delayed by rain and flooding in the coming days in some of Malaysia’s palm oil growing states, including parts of Sabah, which has the country’s largest area of oil palm plantations, a Kuala Lumpur-based trading executive said. The executive tipped prices to test MYR2,450/ton next week. But not all are optimistic about the outlook for palm oil prices, particularly in the long term.

Malaysian inventories peaked at a record 2.56 million tons as of the end of November, and are likely to stay above 2 million tons throughout the first quarter of 2013, which will limit the upside for prices, said Kenanga Research commodities analyst Alan Lim. World agricultural supply and demand estimates from the USDA and the near-term unlikelihood of an El Nino and are also bearish factors, said Mr. Lim. The USDA in a Dec. 11 report estimated 2012-13 global soyoil ending stocks as being 3.4% higher than its November estimate of 2.9 million tons. El Nino is a weather phenomenon associated with warmer temperatures and limited rain.

Open interest on the BMD was 186,040 lots versus 173,137 lots Thursday. One lot is equivalent to 25 tons. A total of 33,240 lots of CPO were traded versus 36,567 lots Thursday.           [Dow Jones Newswire]

Malaysian palm oil futures touched a more-than-three-week high on Friday, posting their first weekly gain in five weeks as traders sought to cover short positions amid optimism for a zero export tax on crude palm oil in early 2013 to cut stocks. Palm oil posted a 5.9 percent gain on the week, its best performance this year, after the edible oil suffered four straight weeks of losses on record high stocks. "There's a technical break above the resistance level at 2,381 ringgit per tonne, and prices should remain supported above the 2,370 ringgit level," said a dealer with a foreign commodities brokerage in Malaysia. "One factor could be the pre-weekend short cover."

At the close, the benchmark March contract on the Bursa Malaysia Derivatives Exchange was up 3.8 percent to settle at 2,409 ringgit ($788) per tonne, just off a high at 2,410 ringgit, a level last seen on Nov. 28. Total traded volumes stood at 33,240 lots of 25 tonnes each, higher than the usual 25,000 lots. Technical analysis showed palm oil is expected to test resistance at 2,381 ringgit per tonne and a bullish target at 2,419 ringgit has been established, Reuters market analyst Wang Tao said.

A small surprise increase in Malaysia's palm exports for the first 20 days of the month also injected cheer in the market, with cargo surveyor Societe Generale de Surveillance reporting a slight increase of 0.5 percent in shipments for the period from a month ago. A jump in crude palm oil exports during the period, which shows companies are pushing out exports ahead of the year-end expiry of their duty-free quota, could help ease record-high stocks in the No.2 palm producer.

Analysts, however, cautioned against an overly optimistic view on inventory levels, citing lower demand from the northern hemisphere, where the edible oil tends to solidify in winter. "Hence, despite the expected December month-on-month production decline of 12 percent, inventory should stay persistently high at above 2.5 million tonnes," Alan Lim Seong Chun, an analyst with Malaysia's Kenanga Investment Bank, said in a research note. "Looking ahead to first quarter 2013, we expect the inventory to decline only marginally and to stay above 2 million tonnes and limit the price upside to below 3,000 ringgit."

Brent crude fell below $110 a barrel on Friday after talks in the United States to avert a budget crisis stalled, reviving worries about demand in the world's biggest oil consumer. Palm oil prices were also supported by gains in competing vegetable oil markets. U.S. soyoil for January delivery  gained 1.8 percent in late Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 0.6 percent higher.          [Reuters]

Today’s Support and Resistance for benchmark March contract is located around 2,390 and 2,450 respectively.

FKLI Related News (Mon, 24 Dec)

NEW YORK, Dec 21 (Reuters) - U.S. stocks finished lower on Friday after a Republican plan to avoid the "fiscal cliff" failed to gain sufficient support on Thursday night, draining hopes that a deal would be reached before 2013. Still, stocks managed to rebound from the day's lows near the end of the session, and for the week, the three major U.S. stock indexes still ended higher, with the S&P 500 gaining 1.2 percent.

Trading was volatile because of waning confidence in the prospect of a deal out of Washington, and in part, as the result of the quarterly expiration of options and futures contracts. The CBOE Volatility Index or VIX, the market's favorite barometer of investor anxiety, finished below its session high. The Dow Jones industrial average dropped 120.88 points, or 0.91 percent, to 13,190.84 at the close. The Standard & Poor's 500 Index fell 13.54 points, or 0.94 percent, to 1,430.15. The Nasdaq Composite Index lost 29.38 points, or 0.96 percent, to 3,021.01. For the week, the Dow gained 0.4 percent and the Nasdaq climbed 1.7 percent.

Republican House Speaker John Boehner failed to garner enough votes from even his own party to pass his "Plan B" tax bill late on Thursday. It was the latest setback in negotiations to avoid $600 billion in tax hikes and spending cuts that some say could tip the U.S. economy into recession. "The failure with Plan B was disappointing, if not terribly surprising, but now there's a real lack of clarity about what will happen, and markets hate that," said Mike Hennessy, managing director of investments for Morgan Creek in Chapel Hill, North Carolina.

Still, the declines of about 1 percent in the three major U.S. stock indexes suggest that investors do not believe the economy will be unduly damaged by the absence of a deal, said Mark Lehmann, president of JMP Securities, in San Francisco. Banking shares, which outperform during economic expansion and have led the market on signs of progress on resolving the fiscal impasse, led Friday's declines. Citigroup Inc fell 1.7 percent to $39.49, while Bank of America slid 2 percent to $11.29. The KBW Banks index lost 1.19 percent.

About 8.59 billion shares changed hands on major U.S. exchanges, more than the daily average of 6.47 billion daily in 2012, in part because of the "quadruple witching" expiration. The day's round of data indicated the economy was surprisingly resilient in November; consumer spending rose by the most in three years and a gauge of business investment jumped. But separate data showed consumer sentiment slumped in December. The S&P Retail Index fell 1.2 percent.

FKLI opened higher this morning even though Dow Jones closed more than 100 points down. FKLI spot month reached a new high of 1685.50 after opening at 1669 this morning. This rebound is likely due to the year-end  window dressing activity.  Nevertheless, the market may close lower today on profit-taking as investors trim their positions ahead of Christmas and New Year holidays.           [Reuters]

Today’s Support and Resistance for December contract is located around 1,665 and 1,685 respectively.

FCPO Related News (Fri, Dec 21)

Exports in the first twenty days of the month fell  1.9  percent compared to the period in November, according to Intertek. According to another cargo surveyor Societe Generale de Surveillance December 1-20 export is up 0.5%.

KUALA LUMPUR, Dec 20 (Reuters) - Malaysian palm oil futures edged lower on Thursday as technical selling weighed on prices, although losses were curbed by investor optimism that a new export tax next year will boost shipments of the crude grade and cut stocks. Malaysia, the world's No.2 producer of the tropical oil, has faced record high stocks since September, which seen prices fall 27 percent this year -- the worst annual performance since 2008.

The low prices have enabled the Malaysian government to set the crude palm oil export tax for January at zero percent, which could see Malaysia grab more market share from top producer Indonesia. Traders are even expecting February taxes to remain at zero given the price downtrend. "Today the market is still trying to find a base. Technically, they are trying to set it down below 2,300 ringgit per tonne," said a trader with a foreign commodities brokerage. "(But) stocks will reduce very fast starting next year because now everybody can ship crude palm oil," he added.

By the midday break, the benchmark March contract on the Bursa Malaysia Derivatives Exchange inched down 0.6 percent to 2,318 ringgit ($757) per tonne. Total traded volumes stood at 16,813 lots of 25 tonnes each, higher the usual 12,500 lots as investors went for a technical sell down of the market. Technical analysis showed that a bearish target of 2,217 ringgit per tonne has been established for palm oil, said Reuters market analyst Wang Tao.

Seasonally slowing production towards the year end could give additional support to Malaysia's palm oil prices in the first quarter of 2013, analysts say. "The first quarter is always the "low production" season. With the new tax structure kicking in, it should help stimulate demand," said James Ratnam, an analyst with TA Securities in Kuala Lumpur. "I expect prices to go up in the first quarter, maybe to about 2,800-2,900 ringgit per tonne. But we have to see whether stocks can come down to a more manageable level," he added.

Brent crude slipped on Thursday to trade around $110 a barrel as investors took profits after recent gains as talks to avert a U.S. fiscal crisis stalled, stoking worries about demand in the world's biggest oil consumer. In other competing vegetable oil markets, U.S. soyoil for January delivery rose 0.5 percent early Asian trade despite declines in the wider soy complex. Soybean prices have come under pressure after China scrapped a contract for 300,000 tonnes of U.S. soy recently. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange fell 1.5 percent.

Today’s Support and Resistance for benchmark March contract is located around 2,315 and 2,360 respectively.

FKLI Related News (Fri, Dec 21)

NEW YORK—U.S. stocks rallied in the final minutes of trading to finish at the day's highs as financial shares led gains after a slew of positive economic data readings. The Dow Jones Industrial Average rose 59.75 points, or 0.5%, to 13311.72. Bank of America paced gains. The Standard & Poor's 500-stock index climbed 7.88 points, or 0.6%, to 1443.69. Financials led all 10 sectors in the S&P 500 higher with a 1.4% gain. The Nasdaq Composite Index added 6.02 points, or 0.2%, to 3050.39.  Initial claims for unemployment benefits totaled 361,000 in the latest week, up from a revised 344,000 in the previous week, and in line with economists' expectations.

House Speaker John Boehner said he would try to push through the House of Representatives his "Plan B" to extend Bush-era tax cuts for those with incomes under $1 million, although President Barack Obama already has said he would reject that plan. The new plan is part of continued efforts to avoid the "fiscal cliff," a package of spending cuts and tax increases set to go into effect at the start of next year. "The market's in a stalemate the way Washington is in a stalemate," said Andres Garcia-Amaya, global market strategist for the funds branch of J.P. Morgan Asset Management, which oversees $400 billion.

Sales of existing home for November rose 5.9% from October, more than twice the 2.3% increase expected by economists. The Philadelphia Federal Reserve Bank's December index of business activity surged to 8.1 from November's -10.7, more than the expected modest improvement to -2.1 . The Conference Board's Leading Economic Index for November declined 0.2%, as expected, and home prices showed a 0.5% increase in October. "We had some good data, but a lot hangs on what happens with the cliff. It is really putting a damper on these numbers," said Peter Jankovskis, co-chief investment officer at Oakbrook Investments.

Shares of NYSE Euronext soared after the exchange operator agreed to be acquired by rival IntercontinentalExchange in a cash and stock deal valued at about $8.2 billion. European markets held close to unchanged levels. The Stoxx Europe 600 rose 0.1%, as fading hopes for a U.S. budget deal and a flat reading on U.K. retail sales kept investors on the sidelines. Asian markets were mostly higher, after the Bank of Japan announced new stimulus measures. China's Shanghai Composite gained 0.3% to a four-month high and Australia's S&P ASX 200 added 0.4% to a 1½-year high. But Japan's Nikkei Stock Average shed 1.2%; it had surged 11% over the last month in anticipation of more stimulus.

Front-month February crude-oil futures rose 0.2% to settle at $90.13 a barrel. December gold futures fell for a third straight day, finishing 1.3% lower at $1,644.90 an ounce. The dollar lost ground against the euro, but rose against the yen. Treasury prices rose slightly, with the 10-year yield climbing to 1.801%.           [The Wall Street Journal]

Stocks on Bursa Malaysia finished in the positive territory for the second consecutive day yesterday helped by gains in telecommunications and plantation blue-chips. The overnight jump on Wall Street and firmer Asian stocks also helped boost overall market sentiment. The benchmark FBM KLCI which opened 6.98 points higher at 1,666.42 gained 6.2 points or 0.37% to 1,665.64, after moving between 1,660.99 and 1,667.7 for the day. FKLI opened slightly lower this morning at 1,672.50. Today’s Support and Resistance for December contract is located around 1,660 and 1,678 respectively.

FCPO Related News (Thurs, Dec 20)

Crude palm oil futures on Malaysia’s derivatives exchange fell Wednesday after trading in a tight range as investors exercised caution ahead of key export data releases Thursday. The benchmark March contract on Bursa Malaysia Derivatives ended 0.5% lower at 2,331 ringgit a metric ton, after moving in a MYR2,313-MYR2,338/ton range.

Expectations of rising palm oil inventories due to lackluster global demand amid seasonally high production in top producers Indonesia and Malaysia weighed on palm oil prices, a Kuala Lumpur-based trader said. The bearish sentiment was also accentuated by fears of slowing demand for soybeans, another Kuala Lumpur-based trader said. A report by the U.S. Department of Agriculture late Tuesday said China, the world’s largest soybean importer, cancelled a previous agreement to buy 300,000 tons of U.S. soybeans. January soyoil futures on the Chicago Board of Trade settled 1.2% lower at 49.17 cents a pound Tuesday reflecting the sharp 2% slide in CBOT soybeans Tuesday.

However, losses were tempered by fears that rains in Argentina, the world’s third-largest soybeans producer, could delay soybean crop plantings further, the second trader said, noting that this was also positive for CPO prices. Macroeconomic factors –signs that U.S. lawmakers are nearing a deal to avert the fiscal cliff and an upgrade in Greece’s credit rating by Standard & Poor’s Tuesday-also supported palm oil prices, he said.

Malaysia’s palm oil export data for the Dec. 1-20 period from cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd., due Thursday, will also impact prices, traders said. Market participants project Malaysia’s Dec. 1-20 palm oil shipments at around 1 million tons, a drop of 2% from the same period a month earlier. Any significant deviation in export figures will likely prompt investors to adjust their positions accordingly. Open interest on the BMD was 181,727 lots, versus 183,945 lots Tuesday. One lot is equivalent to 25 tons. A total of 25,722 lots of CPO were traded versus 30,911 lots Tuesday.

Today’s Support and Resistance for benchmark March contract is located around 2,280 and 2,330 respectively.

FKLI Related News (Thurs, Dec 20)

NEW YORK, Dec 19 (Reuters) - U.S. stocks sold off late in the day to close at session lows on Wednesday as talks to avert a year-end fiscal crisis turned sour, even as investors still expect a deal.The S&P 500 slipped after a two-day rally that took the benchmark index to its highest close in two months. Defensive-oriented shares led the decliners, including health care and consumer staples.

President Barack Obama and congressional Republicans are struggling to come up with a deal to avoid early 2013 tax hikes and spending cuts that many economists say could send the U.S. economy into recession. House Speaker John Boehner, the top Republican in Congress, said in a one-minute press conference that his chamber will pass a proposal that Obama had already threatened to veto as it spares many wealthy Americans from tax hikes needed to balance the budget.

Obama has already agreed to reductions in benefits for senior citizens. "My guess is they're close to a deal, and right before, it looks like the deal is about to blow up either on manufactured or legitimate reasons," said Uri Landesman, president of hedge fund Platinum Partners in New York. He said if the market thought a deal was in real danger, the S&P 500 would slide below 1,400. It stands now near 1,435, not far from a two-month high. The CBOE Volatility Index surged 11.5 percent to 17.36, but has remained relatively stable. Its 14- 50- and 200-day averages are all within 1.1 points. Landesman said the VIX's stability indicates "the bulls have control of this market still."

Banks and energy shares - groups that outperform during periods of economic expansion - have led recent gains, indicating a shift to focusing on a growing economy as Wall Street looks past the budget talks. Defensive sectors led Wednesday's downturn, with the S&P health care sector index down 1.1 percent. The Dow Jones industrial average dropped 98.99 points, or 0.74 percent, to 13,251.97. The S&P 500 lost 10.98 points, or 0.76 percent, to 1,435.81. The Nasdaq Composite fell 10.17 points, or 0.33 percent, to 3,044.36. Data showed homebuilding permits touched their highest level in nearly 4-1/2 years in November. The PHLX housing index fell 0.8 percent, but has gained 66.4 percent this year as the housing market has turned the corner.

About 6.9 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, slightly above the daily average so far this year of about 6.45 billion shares. Advancing and declining issues were almost even on both the NYSE and the Nasdaq.

FKLI spot month opened lower this morning at 1665  as talks to avert a year-end fiscal crisis turned sour. Today’s Support and Resistance for December contract is located around 1,655 and 1,670 respectively.

FCPO Related News (Wed, Dec 19)

Crude palm oil futures on Malaysia’s derivatives exchange ended lower Tuesday as weak export data and uncertainty over the U.S. fiscal cliff weighed on market sentiment. The benchmark March contract at Bursa Malaysia Derivatives ended 0.3% lower at 2,342 ringgit a metric ton after trading in a tight MYR2,332-MYR2,355/ton range.

Cargo surveyor SGS (Malaysia) Bhd. on Monday put Dec. 1-15 palm oil exports at 734,571 tons, a decline of 3.3% from the same period a month earlier. Sentiment also remained cautious as investors focused on the impending U.S. fiscal cliff as the country’s Republicans and Democrats continue to negotiate on the nature of spending cuts and tax hikes expected to take effect in January. However, the losses were tempered by Malaysia’s new CPO export tax structure, market participants said.

Malaysia on Monday set its export tax on crude palm oil for January at zero percent for CPO market prices of less than MYR2,250/ton, free on board. The move will help boost shipments from the world’s second-largest palm oil producer, reducing palm oil inventories, a Kuala Lumpur-based trader said. December palm oil inventories will likely be steady to slightly lower than the record 2.56 million tons seen at the end of November as demand from China picks up, he said.

Palm oil prices will also likely be supported by fears of tightening vegetable oil markets, another Kuala Lumpur-based trader said.  Recent rainfall in Argentina, the world’s third-largest soybean producer after the U.S. and Brazil, could further slow down crop plantings in some parts, he said, tipping soyoil on the Chicago Board of Trade to edge higher toward the 51.30-cents-a-pound mark in the coming sessions. Investors are also awaiting an announcement by Indonesia in the coming days on its CPO export tax structure for January.

Open interest on the BMD was 183,945 lots versus 186,314 lots Monday. One lot is equivalent to 25 tons. A total of 30,911 lots of CPO were traded versus 30,886 lots Monday.            [Dow Jones Newswire]

Palm oil futures have shed more than a quarter of their value since the start of the year, set for their biggest annual drop since 2008, although analysts say prices should recover in 2013 as stocks begin to ease. "For next year, we see a rebound in crude palm oil prices back to 2,750 ringgit per tonne from the current weak position,with signs only expected to start kicking in when inventories are back to optimal levels," Malaysia's Public Investment Bank

said in a research note.

   

"Although production levels are back to normal, demand from the major consuming countries remains uncertain due to the slowdown in economic activity and tightening measures on imports of vegetable oils." China, the world's second largest edible oil buyer, will impose stricter quality measures on edible oil imports from Jan 1 onwards.

In a bullish sign for palm oil, Brent crude rose above $108 a barrel on Tuesday as the outlook for demand improved on signs of progress in U.S. talks to resolve a budget crisis that threatens to dip the world's top oil consumer into recession again. In other vegetable oil markets, U.S. soyoil for January

delivery was almost flat in late Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange edged up 0.1 percent.     

Technical analysis showed palm oil faces resistance at 2,381 ringgit per tonne, and may revisit 2,285 ringgit, a high touched on Dec. 14, said Reuters market analyst Wang Tao.              [Reuters]

Today's Support and Resistance for benchmark March contract is located around 2,300 and 2,350 respectively.

FKLI Related News (Wed, Dec 19)

NEW YORK (Reuters) - U.S. stocks rallied on strong volume on Tuesday, capping off the S&P 500's best two-day run in a month, on confidence that a deal would be struck in Washington to avoid painful spending cuts and tax hikes that could hurt the economy. Banks, energy and technology - sectors that would benefit during economic expansion - led gains as investors remain confident that lawmakers will come to an agreement to avoid the so-called "fiscal cliff" deadline at the end of the year.

"The view is that the economy is getting better, and that is always good for energy demand," said Shawn Hackett, president at Hackett Financial Advisors in Boynton Beach, Florida. Hackett said the United States would avoid "whatever the cliff means" for the economy, allowing investors to focus on growth. President Barack Obama's most recent offer to Republicans in the ongoing budget talks makes concessions on taxes and social programs spending. House Speaker John Boehner said the offer is "not there yet," though he remains hopeful about an agreement. Senate Democrats, however, have expressed concern about cuts to Social Security.

Financial stocks shot higher, as traders bet on a greater demand for loans and a steepening of the yield curve. U.S. government debt sold off Tuesday, with the benchmark 10-year U.S. Treasury note's yield briefly hitting its highest since late October. The S&P financial sector (.GSPF) added 1.5 percent. The Dow Jones industrial average (^DJI) rose 115.57 points, or 0.87 percent, to 13,350.96 at the close. The S&P 500 (^GSPC) gained 16.43 points, or 1.15 percent, to 1,446.79. The Nasdaq Composite (^IXIC) added 43.93 points, or 1.46 percent, to 3,054.53. It was the S&P 500's first back-to-back gain of more than 1 percent since late July.

Stocks of smaller companies outperformed the broader market, with the Russell 2000 (.RUT) up 1.5 percent. Shares of firearm makers sank in the aftermath of a school shooting in Newtown, Connecticut, on Friday that killed 20 young children and six adults. Smith and Wesson (SWHC) fell 10 percent to $7.79 on its largest-ever daily volume, though it was still up about 77 percent so far this year. Sturm Ruger and Co (RGR) slid 7.7 percent Tuesday to $40.60. Private equity firm Cerberus Capital Management said it would sell gunmaker Freedom Group, whose Bushmaster AR-15 rifle was used in the Connecticut massacre. Dick's Sporting Goods (DKS.N) suspended the sale of certain semi-automatic rifles in its stores nationwide.

FKLI spot month opened higher this morning at 1,671. Today’s Support and Resistance for December contract is located around 1,660 and 1,675 respectively.

FCPO Related News (Tues, Dec 18)

Crude palm oil futures on Malaysia’s derivatives ended higher Monday but shed some gains since early Asian trade as investors liquidated positions on expectations of weak export data. The new benchmark March contract at Bursa Malaysia Derivatives ended 0.2% higher at 2,350 ringgit a metric ton after trading in a MYR2,332-MYR2,376/ton range.

Cargo surveyor Intertek Agri Services said Saturday that Malaysia exported around 719,817 tons of palm oil in the Dec. 1-15 period, down 6.4% from a month earlier. Another surveyor, SGS (Malaysia) Bhd., put Dec. 1-15 palm oil shipments at 734,571 tons, a decline of 3.3% from the same period a month earlier. Sentiment also turned cautious as investors turned their focus to the uncertainty surrounding the U.S. fiscal cliff, a bevy of tax increases and government spending cuts slated to begin in January.

However, market participants are optimistic that shipments of the tropical oil will surge in the coming months and support palm oil prices due to an expected recovery in demand from China because of the Lunar New Year festivities. Robust demand for soybeans and soy products from China has already boosted prices of soybeans and soyoil, a Kuala Lumpur-based trader said. January soyoil on the Chicago Board of Trade settled 2% higher Friday at 49.99 cents a pound; it was up another 0.5% when trade on the BMD ended.

Meanwhile, Malaysia has set its export tax on crude palm oil for January at zero percent for CPO market prices of less than 2,250 ringgit/ton, free on board, the Malaysian government said in a circular Monday. The reference price is MYR2,147.81/ton. A zero tax rate will boost shipments from the world’s second-largest palm oil producer and support prices, participants said. Open interest on the BMD was 186,314 lots versus 197,356 lots Friday. One lot is equivalent to 25 tons. A total of 30,886 lots of CPO were traded versus 44,840 lots Friday.           [Dow Jones Newswire]

Malaysian palm oil futures inched up on Monday, riding on rival soybean oil's gains after U.S. soy crushing data sent soybeans to a six-week peak. Chicago soybeans hit their highest since Nov. 8 after data from the National Oilseed Processors Association showed U.S. soybean processors crushed the most soybeans in almost three years and on higher demand especially from top buyer China.

Gains were limited, however, as concerns over high stockpiles remained, especially as the latest data pointed to signs of slowing exports, although traders said easing production could help bring down stock levels. "The market is up a bit on the back of Dalian and Chicago soybean oil," said a trader with a foreign commodities brokerage in Malaysia. "Malaysian palm production should come down this month, so inventory should probably go down a bit."     

In a bearish sign for palm oil, Brent crude edged below $108 a barrel on Monday, drawing support from a brighter economic outlook for top energy consumer China, although investors remained skittish as U.S. talks to avert a year-end "fiscal cliff" dragged on. In other vegetable oil markets, U.S. soyoil for January delivery had edged up 0.5 percent. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange closed 1.5 percent higher.           [Reuters]

Today’s Support and Resistance for benchmark March contract is located around 2,320 and 2,400 respectively.