FCPO Related News (Fri, Nov 8)

KUALA LUMPUR, Nov 7 (Reuters) - Malaysian palm oil futures  fell to a one-week low on Thursday, stretching losses into a third day as investors continued to take profits from last week's steep gains, but prices were stuck in a range ahead of  key output and inventory data. Production in Southeast Asia, which accounts for nearly all of the world's palm oil supply, may have tapered off sooner than expected this year as the monsoon season hampered harvesting.

Investors are eyeing data from Malaysia -- the world's No.2 producer -- on palm oil stocks, exports and output in October that will be released by industry regulator the Malaysian Palm Oil Board on Nov. 11. "The market is quiet. Prices are moving in a 2,550-2,600 ringgit range as investors wait for new leads," said a trader with a foreign commodities brokerage. A Reuters survey showed that Malaysian palm oil stocks probably inched up to 1.82 million tonnes in October, with the increase in inventories limited by lower output of the tropical oil that was predicted to have dropped by 3.3 percent.  

By Thursday's close, the benchmark January contract on the Bursa Malaysia Derivatives Exchange had edged down 0.2 percent to 2,543 ringgit ($800) per tonne. Palm oil prices, which traded in a range of 2,525-2,562 ringgit, have shed 3.2 percent so far this week after last week's almost 8 percent gain, the biggest such rise since 2010. Total traded volume stood at 46,772 lots of 25 tonnes each on Thursday, higher than the usual 35,000 lots. Technicals were bearish. Malaysian palm oil is expected to break support at 2,544 ringgit per tonne and fall further towards 2,491 ringgit, Reuters market analyst Wang Tao said.

The price of the tropical oil could however get a boost from prospects of a drop in output and stronger Asian demand. China, the world's second-biggest palm oil buyer, is expected to begin re-stocking the edible oil ahead of its Lunar New Year festival celebrated at the end-January. "We would expect China to increase palm oil imports in the upcoming months, especially after the winter season," said  Phillip Futures analyst Tan Chee Tat in a note on Thursday.

In competing vegetable oil markets, the U.S. soyoil contract for December fell 0.2 percent in late Asian trade. The most-active May soybean oil contract on the Dalian Commodities Exchange fell 0.3 percent.

In other markets, Brent crude fell below $105 a barrel to  its lowest since early July as plentiful supplies and continued  progress in talks between Iran and the West over Tehran's disputed nuclear programme weighed on prices.

FCPO Related News (Fri, Aug 16)

[Malaysia August 1-15 Palm Oil Exports 644,589 Tons,  Up 17.7% on Month –ITS]

[Malaysia August 1-15 Palm Oil Exports 636,466 Tons,  Up 18% on Month –SGS]

Malaysian palm oil futures rose on Thursday to their highest in more than a month, boosted by strong exports from the world’s second-largest producer, as major buyer China stocks up ahead of the Mid-Autumn festival in September. Exports of Malaysian palm oil products from Aug. 1 to 15 rose 17.7 percent to 644,589 tonnes from the 547,857 tonnes shipped from July 1 to 15, cargo surveyor Intertek Testing Services said on Thursday. "The palm market's stronger today mostly due to good exports in the first 15 days ... We are in a price range now where immediate support is at 2,280 ringgit and resistance at 2,340 ringgit," said a trader with a foreign commodities brokerage in Kuala Lumpur.

By the midday break, the benchmark October contract on the Bursa Malaysia Derivatives Exchange had gained 1 percent to 2,313 ringgit ($706) per tonne. Prices earlier touched 2,318 ringgit, a level not seen since July 12. Total traded volume stood at 17,048 lots of 25 tonnes each, higher than the usual 12,500 lots. A bullish target range on technical charts of 2,348-2,356 ringgit per tonne remains unchanged, as indicated by its wave pattern and a Fibonacci ratio analysis, said Reuters analyst Wang Tao. Malaysia's July palm oil end-stocks unexpectedly rose for the first time this year on a surge in production of the tropical oil.

Data from the Malaysian Palm Oil Board (MPOB) on Wednesday showed inventories rose 1 percent in July to 1.66 million tonnes, marking the first rise since December, against market estimates that stocks had dropped 3 percent. But analysts said a surge in local consumption, indicated by the MPOB stocks data, showed that palm oil demand remained healthy. "Despite the strong surge in production, stockpiles only rose by 1 percent ... due to a sharp increase in local palm oil consumption to a record high of 289,900 tonnes," Malaysia's RHB Investment Bank said in a research note on Thursday. "Part of the surge was due to near-record biodiesel exports, but, more importantly, the conversion of crude palm oil to biodiesel for local consumption."

In other markets, Brent crude prices climbed towards $111 per barrel on Thursday, extending gains from the previous session on a drop in U.S. oil inventories and worries over supplies from the Middle East and North Africa. In vegetable oil markets, the U.S. soyoil contract for December gained 0.5 percent in early Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange climbed 0.3 percent.         [Reuters]

FKLI Related News (Fri, Aug 16)

Share prices on Bursa Malaysia closed marginally lower yesterday on mild selling amid weaker external sentiment, dealers said. The FTSE Bursa Malaysia KLCI (FBM KLCI) moved between 1,791.23 and 1,797.17 during the day before ending at 1,792.21, off 1.52 points. A dealer said the market was volatile throughout the day, with the benchmark index moving sideways below the 1,800-point level, amid bearish regional bourses. “Uncertainty over the stimulus program in the United States kept investors cautious.”          [Bernama]

Stocks finished near their session lows Thursday, with the Dow dropping more than 200 points, as the market continued to speculate about when the Federal Reserve, responding to an improved economy, will start to reduce its generous stimulus to the markets. The Dow Jones Industrial Average tumbled 200 points, dragged down by a 7 percent drop in Cisco. Cisco Systems posted earnings and revenue that edged above Wall Street expectations but shares tumbled heavily after the network equipment maker said it would cut 4,000 jobs in the face of uncertain demand for its products. All key S&P sectors were firmly in negative territory, led by techs and financials.           [CNBC]

Today’s Support and Resistance for FKLI spot month contract is located around 1,780 and 1,800 respectively. 

FCPO Related News (Fri, July 19)

SINGAPORE, July 18 (Reuters) - Malaysian palm oil futures edged higher on Thursday after a price slump this week to seven-month lows attracted buyers, but gains were capped by lingering concerns over weak demand and rising output. Slowing demand after the start of Ramadan slashed Malaysian palm oil exports during the first half of July, while the start of a higher production cycle in the second half of the year also raised prospects of higher inventory levels this month. "The market fell quite a lot on Monday and Tuesday and that brought in some buying interest," said a trader with a foreign commodities brokerage in Kuala Lumpur. "But concerns remain over slowing demand, especially when production picks up in the second half of the year."

By Thursday's close, the benchmark October contract on the Bursa Malaysia Derivatives Exchange had gained 1.8 percent to 2,291 ringgit ($717) per tonne. Prices hit their lowest level this year of 2,222 ringgit on Tuesday on bearish fundamentals. Total traded volume stood at 53,157 lots of 25 tonnes each, well above the usual 35,000 lots. Prices moved between 2,248 ringgit and 2,294 ringgit.

Analysts said concerns over weaker demand from major buyers China and India in the second half of the year could lead to further weakness for palm oil prices, which have fallen nearly 6 percent so far this year. "We believe the resilience of crude palm oil (CPO) imports to the world's top market, India, could be dented by the steep depreciation of the Indian rupee," said Standard Chartered analyst Abah Ofon in a report. "This, coupled with a potentially large edible oilseed harvest in 2013/14 and renewed concerns about demand from China, suggests that the CPO market will need to adjust lower," he added. China is the world's second-largest palm oil buyer after India.

Technicals showed palm oil is biased to test a support of 2,233 ringgit per tonne, as indicated by its wave pattern and a Fibonacci projection analysis, said Reuters market analyst Wang Tao. In other markets, Brent oil fell on Thursday to near $108 a barrel as a strengthening dollar undercut expectations for rising demand after a third weekly drawdown in U.S. crude stocks. In vegetable oil markets, the U.S. soyoil contract for December was up 0.2 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange rose 0.4 percent.

Today’s Support and Resistance for FCPO benchmark October contract is located around 2,270 and 2,310  respectively.

FKLI Related News (Fri, July 19)

Stocks finished higher Thursday, with the Dow and S&P 500 setting fresh highs, boosted by a batch of upbeat economic reports and after Fed Chairman Ben Bernanke reiterated that monetary policy will remain flexible, even as the central bank starts to pare back its bond buying. The Dow Jones Industrial Average climbed 78 points to best its previous all-time high of 15,542.40 by six points. UnitedHealth and Bank of America led the blue-chip gainers. The S&P 500 also topped its previous record of 1,687.18. Most key S&P sectors closed higher, led by energy and financials, while telecoms lagged.

Bernanke returned to Capitol Hill to testify before the Senate Banking Committee on the economy and Quantitative Easing, after reassuring the markets Wednesday that there was no concrete timetable for the Fed to scale back its bond purchase program.  "Our asset purchases depend on economic and financial developments, but they are by no means on a preset course," Bernanke said in his statement to the U.S. House of Representatives Financial Services Committee. Bernanke also emphasized that there could be a lengthy time-lag between the end of asset purchases and a hike in interest rates.

On the economic front, weekly jobless claims dropped by 24,000 to a seasonally adjusted 334,000, according to the Labor Department, to its lowest level in four months. Economists polled by Reuters expected first-time applications to fall to 345,000 last week. European shares were higher, but gains were limited by some lackluster earnings reports. In Asia, the Japanese Nikkei index hit an eight-week high, boosted by the weak yen.           [NBC News Business]

The FTSE Bursa Malaysia KLCI posted a record high at the close of trading yesterday, gaining 2.88 points to 1,791.54 on strong buying interest from retail investors, dealers said. On Bursa Malaysia, gainers almost doubled losers by 547 to 280, with 301 counters unchanged and 457 untraded, including 24 which were suspended. Turnover rose to 1.751 billion shares worth 2.744 billion.  Interpacific Securities research head Pong Teng Siew said sizeable gains in low liners that attracted retail investors to participate actively in the market helped to push the index to an all-time high at the close. “However, it is difficult for this trend to be sustained as trading  (yesterday) was mostly on the speculative buying,” he said.           [Bernama]

FKLI spot month contract opened higher this morning at 1,795 following strong buying interest from retail investors. Today’s Support and Resistance for July contract is located around 1,790 and 1,810 respectively.

FCPO Related News (Fri, June 21)



KUALA LUMPUR, June 20 (Reuters) - Malaysian palm oil futures ended lower on Thursday, as global economic uncertainty spooked  investors, although losses were limited by robust export data and a weaker local currency that sent prices to a near three-month high inthe morning session. Exports of Malaysian palm oil products for      June 1 to 20 rose 16.2 percent to 928,810 tonnes from the same       period last month, cargo surveyor Intertek Testing Services said on Thursday.



The spike in shipments reflected higher purchases by India and  

Pakistan ahead of the Muslim holy month of Ramadan in July,       when communal feasting typically increases consumption of the     edible oil. Despite supportive fundamentals, investor sentiment was weak, with markets from crude oil to Asian shares tumbling on       Thursday, as slowing Chinese manufacturing activity hurt sentiment even  further after the Federal Reserve signalled it would begin to dial  down stimulus this year.     


"The market ended a little lower because of the fragile sentiment.  

But fundamentals are still supportive with exports rising higher and the ringgit still weak," said a trader with a foreign commodities       brokerage in Kuala Lumpur. The benchmark September contract on the Bursa Malaysia  Derivatives Exchange lost 0.3 percent to close at 2,465 ringgit ($771) per tonne. Prices rose to an intraday high of 2,491 ringgit in the morning, a level last seen on March 25.


Total traded volume stood at 34,107 lots of 25 tonnes each, slightly 

lower than the usual 35,000 lots. Despite the lower market close,     traders said a weak ringgit could still support prices, as it makes the tropical oil cheaper for overseas buyers and improves refining        margins. The ringgit lost nearly 3 percent against the dollar on 

Thursday, with the greenback stronger after the Fed's                      announcement.  In vegetable oil markets, U.S. soyoil for July lost

0.8 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange lost 0.5 percent.       

FKLI Related News (Fri, June 21)

Stocks crumpled Thursday, with the Dow shedding more than 350 points, under the weight of worries that the Federal Reserve would throttle back on easy money policies that have helped fuel the recovery. Concerns about China’s economy added fuel to the selling, which began in the U.S. Wednesday and spread swiftly around the globe to come full circle back to U.S. markets Thursday. It was a day of superlatives: the U.S. markets’ worst day so far this year and the biggest percentage drop – at 2.34 percent - for the Dow since Nov. 7, 2012, the day after President Obama was reelected.

The Dow Jones Industrial Average plummeted 353.87 points, or 2.34 percent, to 14,758.32. The broader S&P 500 Index fell 40.74 points, or 2.50 percent, to 1,588.19. The tech-heavy NASDAQ dropped 78.57 points, or 2.28 percent, to 3,364.63. The Dow sell-off alone had wiped out more than $120 billion of investors' capital since Fed Chairman Ben Bernanke's comments on Wednesday afternoon. In the last two days, the Dow and the S&P 500 have lost all of their gains for May and June combined.

Despite positive news on the U.S. housing front, higher than expected U.S. jobless numbers added to the gloomy atmosphere on the markets and benchmark Treasury yields were near their highest in almost two years. "Despite the sell-off yesterday, you saw the cyclical names holding on that's considered important because it's more indicative of the underlying strength of the economy," noted Quincy Krosby, market strategist at Prudential Financial. "We shouldn't be surprised by what the Fed said yesterday—Bernanke had already mentioned this in his speech back in May and we saw an immediate reaction in the bond market," said Krosby. "We haven't had a meaningful correction in the market and if this selloff continues…it doesn't mean the market is going to collapse; it is essentially recalibrating—the road to normal is going to be filled with detours."

European shares closed deeply in the red across the board with the FTSEurofirst 300 index falling nearly 3 percent. Markets in Asia were slammed, with the Japanese Nikkei closing down nearly 2 percent. South Korea's Kospi and the Shanghai Composite traded near 2013 lows. Adding to woes in Asia, China's HSBC Flash Purchasing Manager's Index, a preliminary reading of manufacturing activity, fell to a nine-month low in June.


FKLI spot month contract opened lower at 1,733 this morning following Dow’s big drop. Today’s Support and Resistance for June contract is located around 1730 and 1750 respectively.

FCPO Related News (Fri, June 7)

KUALA LUMPUR, June 6 (Reuters) - Malaysian palm oil futures rose to the highest in more than two months on Thursday, buoyed by optimism that stocks of the tropical oil in the world's second largest producer could have dropped in May. A Reuters survey on Wednesday showed that end-stocks in Malaysia may have eased to 1.78 million tonnes last month, their lowest in almost a year, as exports and domestic consumption offset near-stagnant production. Investors are now awaiting official stocks and output data scheduled to be released by industry regulator the Malaysian Palm Oil Board (MPOB) on Monday for more trading cues.

Export data for the first ten days of June will also be announced on the same day. "Today the market is supportive because of the follow through from Wednesday's gains -- now there's expectations that stocks would fall below 1.8 million tonnes," said a trader with a foreign commodities brokerage. "Traders are waiting for next week's MPOB report and export data. Exports in June 1-10 should be around 400,000 tonnes, slightly better than May 1-10, as we move into the festive month," the Kuala Lumpur-based trader added, referring to the Muslim holy month of Ramadan, which begins in July this year. At market close, the benchmark August contract on the Bursa Malaysia Derivatives Exchange rose 1.3 percent to 2,434 ($790) ringgit per tonne, slightly below its intraday high at 2,436 ringgit, its loftiest since March 27.

Total traded volumes stood at 28,268 lots of 25 tonnes each, thinner than the average 35,000 lots as traders stayed on the sidelines ahead of next week's data. Technicals showed palm oil faces resistance at 2,420 ringgit per tonne, a break above which will lead to a further gain towards 2,457 ringgit, Reuters market analyst Wang Tao said. Palm oil is on track to post its fifth straight weekly gain, after prices in May climbed nearly 5 percent due to restocking ahead of Ramadan, despite weaker demand from the world's second biggest buyer China. Communal feasting during Ramadan typically drives up edible oil consumption. Prices of the edible oil have also been supported by a steady decline in stocks, from a record high of 2.63 million tonnes in December, as seasonally weaker production in the first half of the year helped offset sluggish exports.

In other markets, Brent edged further above $103 a barrel as a drop in U.S. oil stocks and news of lower Iranian exports outweighed worries that the U.S. Federal Reserve may scale back its economic stimulus. In vegetable oil markets, U.S. soyoil for July crept up 0.2 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange ended almost unchanged.

Today’s Support and Resistance for benchmark FCPO August contract is located around 2,420 and 2,460 respectively.

FKLI Related News (Fri, June 7)

NEW YORK (Reuters) - U.S. stocks rose on Thursday, with the Dow swinging nearly 200 points from its session low to high and the S&P 500 recovering after hitting a key technical level in volatile trading a day before the release of the U.S. jobs report. Market volatility has increased recently and the S&P 500 has lost 3 percent since Federal Reserve Chairman Ben Bernanke's comments two weeks ago that the central bank may decide to reduce stimulus in the next few policy meetings if data shows the economy is improving. The move follows a rally for much of this year, largely on the Fed's continued stimulus actions.

The three major U.S. stock indexes finished Thursday's choppy session at their highs for the day. The session's best performers included financials and health care, with each of those S&P sector indexes ending up 1.4 percent. Economists expect the non-farm payrolls report on Friday will show job growth of 170,000 in May, slightly above April's addition of 165,000 positions. They expect the U.S. unemployment rate will remain steady at 7.5 percent. The jobs report will come one hour before U.S. stock trading begins on Friday. "Technically, the 1,600 level is an important area to hold," said Michael Sheldon, chief market strategist at RDM Financial, in Westport, Connecticut.

The pickup in market volatility over the past couple of weeks reflects investors' uncertainty over Fed policy, combined with worries about a still sluggish global economy, he said. The European Central Bank kept interest rates unchanged on Thursday and left other policy tools untouched after discussing options it could use if the euro zone's economy does not come out of recession later this year. ECB President Mario Draghi said economic conditions did not justify moves such as requiring banks to pay to leave their money with the central bank overnight.  

Oil prices rose on Thursday as Britain's largest oilfield was shut down for the second time in less than a week, and as a major U.S. refinery prepared to re-start this month. Global equities moved higher while the dollar slid against the euro and yen on Thursday as investors reduced heavy bets on the greenback on concerns that  Friday's U.S. jobs report will disappoint. Gold rose 1 percent in a late recovery on Thursday as the dollar fell sharply against the yen and the euro on fears of weak U.S. jobs data that will be released on Friday.           [Reuters]

Bursa Malaysia closed lower yesterday in cautious trading on mild profit-taking, with losses seen in selected heavyweights, dealers said.  After the ‘see-saw’ trading, the barometer index FBM KLCI fell 4.82 points to close at 1,769.6. The key index moved between 1,777.74 and 1,767.23 throughout the day. On the regional front, a dealer said most of the Asian bourses were lower yesterday on uncertainty over the US employment data to be released today. “Strong data could prompt the Federal Reserve (Fed) to tighten policy sooner rather than later while weaker data could be viewed as bullish, as it will provide more cover for the Fed to keep the stimulus in place,” he said.          [Bernama]

FKLI spot month contract opened unchanged this morning at 1,766.50. Today’s Support and Resistance for June contract is located around 1,765 and 1,775 respectively. 

FCPO Related News (Fri, May 31)

[Malaysia May Palm Oil Exports 1.26 Million Tons,  Down 3.3% on Month –ITS]

[Malaysia May 1-25 Palm Oil Exports 1.061 Million Tons,  Down 2.1% on Month –SGS]

[Malaysia May 1-25 Palm Oil Exports 1.064 Million Tons, Down 5.2% on Month – ITS]

Crude palm oil futures on Malaysia’s derivatives exchange end down on profit-taking and concerns about a weak growth outlook for China. "Market chatter put overall May exports at 1.26 million tons, a decline of around 2%-3%," which is not as steep as the first 20 days and has helped underpin the market, a trading executive in Kuala Lumpur says. Buyers usually boost purchases of palm oil–used to make a wide variety of consumer products ranging from cooking oil to margarine–ahead of the Muslim fasting month of Ramadan, which starts in July this year, as food consumption tends to rise thanks to communal feasts after dawn-to-dusk fasting.

Brokers tip palm oil to trade around near-term support-resistance levels of MYR2,370/ton and MYR2,430/ton Friday. Cargo surveyors Intertek and SGS will also issue May export data Friday. Benchmark August CPO ends down 1.1% at MYR2,372/ton; CBOT July soyoil is down 1.1% at 48.52 cents/lb in screen trade.    

[Dow Jones Newswire]

KUALA LUMPUR, May 30 (Reuters) - Malaysian palm oil futures edged down on Thursday, slipping from a two-month high hit the day before as weaker overseas markets and slower demand for commodities weighed on the tropical oil, and as investors booked profits. Soy markets in the United States, tracked by palm, extended losses from the previous day following news that China, the world's largest buyer of soybeans, had cancelled a 147,000 tonne order for U.S. soy.

The benchmark August contract on the Bursa Malaysia Derivatives Exchange ended 1.1 percent lower at 2,372 per tonne. Prices traded in a tight 2,371-2,396 ringgit range, while total traded volumes stood at 22,280 lots of 25 tonnes each, just below an average 25,000 lots. "The market has been going up for so many days -- today it's the first day down, following weaker overseas markets," said a trader with a foreign commodities brokerage. "The market is also down due to a technical correction and profit taking," he added. Palm prices touched 2,420 ringgit on Wednesday, their highest since March 28, as investors anticipated tight supplies and a demand pick-up ahead of a Muslim festival, which would help trim stocks in No.2 producer Malaysia.

Technicals showed palm oil is expected to end the current correction above a support at 2,362 ringgit per tonne and then rise towards Wednesday's 2,420 ringgit high, Reuters market analyst Wang Tao said. Investors hope the Ramadan fasting month in July, when communal feasting usually boosts consumption, will nudge up demand of the edible oil that is widely used in food items ranging from chocolate to cookies. Market players will study export data for May, which will be released by cargo surveyors on Friday, to gauge demand. Exports of palm oil products have been sluggish this month due partly to weak demand from China. "Exports could be down between 2-3 percent for May," the Kuala Lumpur-based trader said. "Toward the Ramadan month, normally India, Pakistan and the Middle East buys more. But this time they are not."

In other markets, oil prices eased towards $102 a barrel on Thursday and were on track for a third straight month of losses amid a tepid global demand outlook and abundant supplies in the United States. In vegetable oil markets, U.S. soyoil for July delivery slipped 0.3 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange ended down 1 percent.          [Reuters] 

Today's Support and Resistance for benchmark FCPO August contract is located around 2,366 and 2,395 respectively.

To

FKLI Related News (Fri, May 31)

NEW YORK (Reuters) - Stocks rose on Thursday, rebounding from the previous session's losses, as tepid economic data eased concerns the Federal Reserve would begin to gradually scale back its policy of stimulating growth. Shares tumbled on Wednesday on concern the Fed would curb its bond-buying because of signs the economy was strengthening. U.S. Treasury bond yields rose to the highest in 13 months the same day, also influenced by concern about possible Fed tapering. "It won't be until around September before we really hear about possible changes in Fed (policy), but the market is volatile because at these levels, profit-taking is part of a hedging method to protect against possible downsides," said Randy Frederick, director of trading and derivatives at Charles Schwab in Austin, Texas. "After the profit-taking, the market moves right back up because it's a great buying opportunity, like today."

The Dow Jones industrial average (.DJI) was up 21.73 points, or 0.14 percent, at 15,324.53. The Standard & Poor's 500 Index (.SPX) was up 6.05 points, or 0.37 percent, at 1,654.41. The Nasdaq Composite Index (.IXIC) was up 23.78 points, or 0.69 percent, at 3,491.30. Data showed first-time claims for unemployment benefits unexpectedly rose in the latest week while the government's latest reading on first-quarter gross domestic product came in slightly below forecasts. Loose monetary policies by central banks around the world have helped drive both the Dow and the S&P 500 to record highs. The S&P 500 is up more than 16 percent this year so far.

Pending home sales rose 0.3 percent in April to the highest since April 2010, but analysts had expected a 1.1 percent rise. Volume was roughly 6.5 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, slightly above the average daily closing volume of about 6.4 billion this year. Advancers outpaced decliners on the NYSE 1,756 to 1,208. On the Nasdaq, advancers beat decliners 1,728 to 772.          [Reuters]

Share prices on Bursa Malaysia ended lower across the board yesterday, amid weak buying momentum, with sentiment dampened by the downtrend in  regional markets and Wall Street, dealers said. At 5pm, the FBM KLCI was 8.55 points or 0.5 percent lower at 1,774.92 after trading between 1,772.69 and 1,781.17 throughout the day. “The market is undergoing a ‘healthy correction’ at the moment after recent gains,” said TA Securities Senior Technical Analyst Stephen Soo. The negative flow of global news affected local and regional equity markets, he said. “The market is changing from the bulls to the bears,” Hwang DBS Vickers Research said.          [Bernama]            

FKLI spot month contract opened slightly higher this morning at 1,775 points. Todays’ Support and Resistance for FKLI May contract is located around 1,668 and 1,680 respectively.

FCPO Related News (Fri, May 24)

[Malaysia May 1-20 Palm oil Exports 807,232 Tons, down 6.6% on Month – SGS ]

[Malaysia May 1-20 Palm oil Exports 799,405 Tons, down 9.4 % on Month – Intertek]

[Malaysia May 1-15 Palm oil Exports 611,277 Tons, down 3% on Month – SGS]

[Malaysia May 1-15 Palm oil Exports 599,300 Tons, down 7.6% on Month – Intertek]

SINGAPORE, May 23 (Reuters) - Malaysian palm oil futures rose on Thursday to their highest in more than a month, stretching gains to a third straight week as investors hoped for a recovery in demand ahead of the Muslim fasting month of Ramadan. Higher export demand as buyers restock ahead of the event in

July and easing production could trim stocks further in the world's second largest producer, whose inventory fell to 1.93 million tonnes by the end of April.

But bullish sentiment was contained ahead of the long weekend and as traders look out for further exports data due next week. The Malaysian financial markets will be closed on Friday for a public holiday. "Although production looks likely to be lower, stocks level at the end of the month will really depend on how exports perform for the last ten days. Resistance is at 2,400 ringgit," said a trader with a domestic commodities brokerage in Kuala Lumpur.  

The benchmark August contract on the Bursa Malaysia Derivatives Exchange gained 0.5 percent to close at 2,370 ($782)ringgit per tonne, slightly off its high at 2,375 ringgit, a level last seen on April 11. Total traded volumes were 32,836 lots of 25 tonnes each, slightly lower than the usual 35,000 lots. Technical analysis is bullish as it showed a target at 2,388 ringgit per tonne had been confirmed for palm oil, as it has pierced above a resistance at 2,362 ringgit, Reuters market analyst Wang Tao said.

   

For the week, prices posted a gain of 1.5 percent, despite weaker exports data for the first 20 days of May, as investors look to restocking demand to support prices. In other markets, oil fell below $102 a barrel on Thursday in a broader commodities selloff as a decline in China's factory activity entrenched concern about weak demand and on worries about an early scale-back in Federal Reserve stimulus. In vegetable oil markets, U.S. soyoil for July delivery fell 0.4 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange fell 0.8 percent.   

Next week’s Support and Resistance for benchmark FCPO August contract is located around 2,320 and 2,420 respectively.

FKLI Related News (Fri, Mar 24)

NEW YORK, May 23 (Reuters) - U.S. stocks dropped on Thursday, with the S&P 500 on pace for its first back-to-back daily drop in a month amid investor concerns the U.S. Federal Reserve's stimulus may be scaled back sooner than hoped and after weak data in China. The S&P 500 had posted its biggest decline in three weeks on Wednesday after minutes from the latest U.S. Federal Reserve meeting showed some officials were open to tapering large-scale asset purchases as early as at the June meeting.

The minutes came in the wake of comments earlier in the session by Fed Chairman Ben Bernanke, who said the Fed could scale back the pace of its bond purchases at one of the "next few meetings" if the economic recovery looked set to maintain forward momentum. Adding to selling pressure, China's flash HSBC Purchasing Managers' Index for May fell to 49.6, slipping under the 50-point level which indicates expansion for the first time since October. That raised concerns the recovery in the world's second-largest economy has stalled and a sharper downturn may be on the horizon. 

Separately, data in Europe showed that while the downturn across euro zone businesses eased slightly in May, the bloc's economy is likely to contract again in the second quarter. In a bright spot, the number of Americans filing new claims for unemployment benefits dropped 23,000 to a seasonally adjusted 340,000, slightly better than expectations for a decline to 345,000, a report showed. But U.S. manufacturing slowed for a second straight month in May, as the Markit Purchasing Managers Index fell to a seven-month low of 51.9 in May from 52.1 the previous month.

The benchmark S&P index has jumped 15 percent since the start of the year, boosted by slowly improving U.S. economic data and stimulus measures by central banks around the globe. The Dow Jones industrial average lost 84.71 points, or 0.55 percent, to 15,222.46. The Standard & Poor's 500 Index dropped 12.64 points, or 0.76 percent, to 1,642.71. The Nasdaq Composite Index fell 20.71 points, or 0.60 percent, to 3,442.59. Selling was broad, with each of the 10 major S&P sectors in negative territory. Decliners on the New York Stock Exchange outpaced advancers by more than five to one, while the ratio on the Nasdaq was three to one.

Housing data showed sales increased to a seasonally adjusted annual rate of 454,000 units in April, above expectations of a 425,000-unit rate, and prices climbed to record high levels in a sign the housing market recovery remains on track. Still, the PHLX housing sector index shed 0.2 percent. Hewlett-Packard Co jumped 11.6 percent to $23.70 as one of only two Dow components in positive territory after the computer maker raised its 2013 earnings outlook after quarterly results beat low expectations.

Stocks on Bursa Malaysia closed lower yesterday, reversing earlier advances as losses in banking and Petronas-related stocks dragged the benchmark FBM KLCI below its previous all-time high closing of 1,788.43 registered on May 14. The FBM KLCI, which hit an intra-day high of 1,795.59, began a downtrend from 3.10pm and eventually closed 3.50 points or 0.20% lower at 1.783.88 points, after opening 1.23 points higher at 1,788.61. Losers led gainers by 618 to 323, with 249 counters unchanged. Turnover declined to 2.877 billion shares worth RM2.972 billion from 2.966 billion shares worth RM3.011 billion on Tuesday.

Taking cue from the rebound on Wall Street overnight, the FKLI spot month contract opened higher on Thursday morning at 1,771.50 and climbed gradually to the intra-day high of 1,777.50 but took a turn in the afternoon session and slipped to the intra-day low of 1,757.50 before closing at 1,764.

The Bursa market is closed today for Wesak Day holiday. Next week’s Support and Resistance for FKLI May contract is located around 1,750 and 1,790 respectively.

FCPO Related News (Fri, May 17)

Crude palm oil futures on Malaysia’s derivatives exchange end up as investors bought at lower levels following recent declines. Market chatter about improving export demand in the second half of this month provided underlying support to the market as well, an exporter in Pasir Gudang says. A rebound in exports in May could help ease stocks in Malaysia to 1.80 million tons at end-May from 1.93 million tons last month, the exporter adds and tips Friday’s trade in a MYR2,300-MYR2,360/ton band. New benchmark August CPO ends up 0.7% at MYR2,314/ton. CBOT July soyoil is up 0.2% at 49.43 cents/lb in screen trade.           [Dow Jones Newswire]

Malaysian palm oil futures rose on Thursday as buyers returned after three straight sessions of losses, and investor sentiment brightened for exports to recover in the second half of May. Shipments of palm oil fell between 3 percent and 8 percent over May 1 to 15 from the corresponding April period, fanning concerns that demand for the tropical oil is slowing, but traders said the decline was smaller than expected and exports could pick up in the coming weeks.

Traders also expect output in Malaysia, the world's second-largest producer, to slow this month and to help further ease stocks that have dipped below the psychological 2-million-tonne mark to 1.93 million tonnes in April. "There are buyers coming in to support the market, which can be seen from the increased trading volumes," said a trader with a foreign commodities brokerage in Kuala Lumpur.  "I've also been hearing that production this month is not as good as expected. It looks like end-stocks could dip further, and May's stocks could be the lowest in the whole year," the trader added.

By Thursday's close, the benchmark August contract on the Bursa Malaysia Derivatives Exchange had risen 0.7 percent to 2,314 ringgit ($768) per tonne. Prices traded in a range between 2,292 and 2,324 ringgit. Total traded volumes stood at 44,002 lots of 25 tonnes each, higher than the usual 35,000 lots. Malaysia announced on Wednesday it would set its crude palm oil export tax for June at 4.5 percent, unchanged since March. Top producer and biggest rival Indonesia is to set June taxes at the end of the month. In vegetable oil markets, U.S. soyoil for July delivery rose 0.2 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange rose 0.1 percent.           [Reuters]

Today’s Support and Resistance for benchmark FCPO August contract is located around 2,300 and 2,350 respectively.

FKLI Related News (Fri, May 17)

United States (US) stocks fell on Thursday, with the downturn accelerating late in the day after a Federal Reserve official said the central bank could begin easing up on its monetary stimulus this summer. The three major US stock indexes had earlier traded in a tight range, supported by a gain of more than 12 per cent in Cisco Systems shares and as investors took in a batch of economic data that pointed to slower growth.

U.S. stock index futures were little changed on Thursday following four days of losses on the S&P 500, with trading once more expected to be dictated by developments in Europe. Greek politicians rejecting the conditions for a bailout that is keeping the country's finances afloat are likely to win next month's elections, and the political turmoil has sent riskier assets sharply lower over the past weeks.  Spain's medium-term borrowing costs rose sharply in a Thursday auction of 3- and 4- year bonds, reflecting concerns over the Spanish banking system and economy. Giving investors some respite Japan's economy grew 1.0 percent in the first quarter, slightly more than expected, and a 0.2 percent contraction reported in the world's third-largest economy for the final three months of 2011 was revised up to flat.

The U.S. data calendar includes the release of first-time weekly claims for jobless benefits at 8:30 a.m. (1230 GMT). Economists in a Reuters survey forecast a total of 365,000 new filings compared with 367,000 in the prior week. S&P 500 futures edged up 0.4 point and were slightly above 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 rose 1 point, and Nasdaq 100 futures shed 3 points. The pan-European FTSEurofirst 300 index fell 0.8 percent after hitting a fresh 2012 low. A gauge of European bank stocks dropped 2.3 percent.          [Reuters]

Stocks on Bursa Malaysia ended broadly lower yesterday due to selling pressure, while regional bourses traded mixed, as investor excitement on Japan's better economic growth data was partly dampened by the country's softer capital expenditure data which fell 0.7 percent, in the fifth straight quarter of decline. The FBM KLCI which notched new historic highs on Monday and Tuesday, ended at 1,766.72, sliding 16.31 points or 0.91%, weighed down by losses in major blue-chips. 

FKLI spot month contract opened slightly higher this morning at 1,766 following Japan’s positive economic growth. Today’s Support and Resistance for FKLI May contract is located around 1,750 and 1,775 respectively.

FCPO Related News (Tues, May 7)

KUALA LUMPUR, May 6 (Reuters) - Malaysian palm oil futures slipped to nearly a 5-month low on Monday, weighed down as the ringgit surged against the dollar following the ruling coalition's win in the country's general elections. The Malaysian ringgit rose on Monday to its highest since September 2011 after the governing National Front coalition extended its 56-year rule, seeing off a strong challenge by an opposition alliance that had unnerved investors because of the potential for political instability.

   

The stronger ringgit made the palm oil feedstock more expensive for overseas buyers and lowered refiners' margins,keeping some investors on the sidelines. "The ringgit is strong today, but the stock index is also strong, so the palm oil market is only slightly down. We are still seeing some rangebound trading today," said a trader with a foreign commodities brokerage in Kuala Lumpur. Investors also avoided taking risks as they waited for official data on Malaysia's April palm oil stocks and output levels, due on Friday.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange edged down 0.1 percent to close at 2,250 ringgit ($756) per tonne. Prices earlier fell as low as 2,230 ringgit, a level last seen on Dec. 13. Total traded volumes were thin at 22,837 lots of 25 tonnes each, compared to the average 35,000 lots. Technicals showed a bearish target at 2,160 ringgit has been established, as a downtrend from the March 25 high of 2,505 ringgit has resumed, said Reuters market analyst Wang Tao.

Market participants are hoping that the next report on palm oil stocks supports prices, which have lost 7.7 percent so far this year. However, easing exports have raised concern that inventory levels may have fallen only marginally in April and held above 2 million tonnes. Palm oil stocks in Malaysia, the world's second largest producer, fell almost 11 percent to 2.17 million tonnes in March from February's 2.43 million tonnes.

   

In other markets, Brent oil rose above $105 a barrel on Monday to its highest in nearly a month as an Israeli air strike on a Syrian military facility refocused attention on Middle East supply risks, although prices pared gains after weak European economic data. In vegetable oil markets, the U.S. soyoil for July delivery gained 0.6 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange rose 1.9 percent.       

Today’s Support and Resistance for benchmark July contract is located around 2,230 and 2,280 respectively.

FKLI Related News (Tues, May 7)

NEW YORK, May 6 (Reuters) - U.S. stocks were little changed on Monday, pausing after a rally that pushed the Dow and S&P 500 to record highs last week on improving earnings and reassuring signs about the economy. Apple shares were among the top gainers, up 2 percent at $458.65 and giving the biggest boosts to the Nasdaq composite index and benchmark S&P. Market watchers said there is more room for stocks to rise as investors use weakness in the market as an opportunity to add to positions.

Although weak economic data from the euro zone and China has caused concerns over the global growth outlook, Friday's stronger-than-expected U.S. payrolls report fueled the gains that took the indexes to record levels. Equities have been strong so far this year, with the S&P 500 up more than 13 percent in 2013 on the back of strong corporate earnings and accommodating monetary policies that have kept interest rates low. The Dow Jones industrial average was down 26.54 points, or 0.18 percent, at 14,947.42. The Standard & Poor's 500 Index was up 0.46 point, or 0.03 percent, at 1,614.88. The Nasdaq Composite Index was up 6.21 points, or 0.18 percent, at 3,384.85.

Stocks on Bursa Malaysia closed higher across the board yesterday after the ruling Barisan Nasional retained power in the 13th General Election held on Sunday. The FBM KLCI also hit an all-time intra-day high of 1,826.22, boosted by a buying spree in heavyweight counters. The key index closed at a historic high of 1,752.02 points yesterday, up 57.25 points or 3.38% from last Friday's close after hovering between 1,743.14 and 1,826.22. Gainers led losers by 870 to 83 with 132 counters remained unchanged. Total volume almost doubled to 1.911 billion shares worth RM4.993 billion from Friday's 933.243 million shares worth RM2.315 billion.

Today’s Support and Resistance for FKLI May contract is located around 1,750 and 1,780 respectively.

FCPO Related News (Mon, May 6)

Malaysian palm oil futures slipped to a near 5-month low on Friday, posting a weekly loss of 2.7 percent, with many investors exiting the market as the country heads into polls. The Malaysian benchmark stock index lost more than a tenth on its first trading day after the country's last elections in 2008.  A weaker ringgit will be good for palm oil, but a weaker stock index is bad. Investors also avoided taking risks as they waited for further trading clues from official data on palm stocks and output levels due next week.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange fell 0.3 percent to close at 2,254 ringgit ($743) per tonne. Prices earlier fell to 2,243 ringgit, a level last seen on Dec. 14. Total traded volumes stood at 28,510 lots of 25 tonnes each, slightly below the average 35,000 lots. Cargo surveyor data on Tuesday showed April's palm oil exports fell between 4.3 percent and 5.6 percent on the month, on waning Chinese demand, stoking concern that prices, already down around 7.5 percent this year, could tumble further. Affin Investment Bank on Friday cut its average selling price forecast for crude palm oil in 2013 to 2,600 ringgit per tonne from 2,800 ringgit, citing a sluggish outlook due to "uneven global growth, high palm oil stocks, the outbreak of the H7N9 virus in China, and a likely delay in the implementation of biodiesel policy".

In other markets, Brent crude eased slightly lower below $103 a barrel on Friday, but held most of its gains from the previous session, as investors awaited U.S. jobs figures that may show the economy is quickening in the world's top oil consumer. In vegetable oil markets, the U.S. soyoil for July delivery rose 0.6 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange gained 0.9 percent.           [Reuters]

FCPO benchmark July contract opened slightly higher this morning at 2,263. Today’s Support and Resistance for benchmark July contract is located around 2,230 and 2,280 respectively.

FKLI Related News (Mon, May 6)

NEW YORK, May 3 (Reuters) - The S&P 500 and Dow industrials hit intraday record highs on Friday and the benchmark S&P traded above 1,600 after U.S. employment rose more than expected in April. In addition, hiring was much stronger than previously thought in the prior two months, the Labor Department said, easing concerns that government spending cuts were dealing a blow to the economy. The Dow Jones industrial average rose 135.27 points or 0.91 percent, to 14,966.85, the S&P 500 gained 16.01 points or 1 percent, to 1,613.6 and the Nasdaq Composite  added 34.62 points or 1.04 percent, to 3,375.25.

The report eased investor concerns after a raft of soft data, particularly in the manufacturing sector, and sent the S&P 500 hurtling past what was viewed as its final resistance level of 1,600 to a fresh all-time closing high of 1,614.42. With little in the way of economic data on tap next week and earnings season moving into the home stretch, there appears to be little that could derail a move higher. But revenue remains disappointing, with only 46.3 percent of S&P 500 companies topping Wall Street expectations, well below the 62 percent beat rate since 2002 and shy of the 52 percent average for the past four quarters.

KUALA LUMPUR, May 6 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) opened at an all-time high of 1,771.6, up 76.85 points on strong buying interest after the ruling party maintained power in the just-concluded general election. The previous high of 1,718.44 points was registered on April 30. At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rocketed 121.5 points to 1,816.27 points with 362 gainers, 12 losers, 32 unchanged and 1,205 counters untraded including 32 others that are suspended. Turnover stood at 120.59 million shares worth RM335.44 million.

HwangDBS Vickers said with the incumbent Barisan Nasional coalition returning to federal power after the 13th General Election, the removal of a political overhang could spark a relief rally on the Malaysian stock exchange today. "The benchmark FBM KLCI may be on its way to plot fresh all-time highs," it said in a research note Monday. Among actives, CIMB added 99 sen to RM8.60, UEM Land garnered 41 sen to RM3.05, Astro gained nine sen to RM3.04, Tebrau Teguh earned 15 sen to RM1.39 and SapuraKencana chalked up 32 sen to RM3.37. Heavyweights, Maybank added 59 sen to RM10.18, Axiata gained 64 sen to RM7.24, Sime Darby earned 45 sen to RM 9.81, Petronas Chemicals added 31 sen to RM6.79 and Tenaga rose 36 sen to RM8.14.

FKLI spot month contract opened very high this morning at 1,721 following the election results last night saw the ruling coalition retaining power. Today’s Support and Resistance for May contract is located around 1,720 and 1,820 respectively.