FCPO Related News (Mon, Apr 1)

[Malaysia March Palm Oil Exports 1.36 Mln Tons, up 2.9% on month - Intertek]

SINGAPORE, March 29 (Reuters) - Malaysian palm oil futures slipped to the lowest in two weeks on Friday to record a fourth straight quarterly drop, after data showed higher-than-expected U.S. soybean stockpiles. The U.S. Department of Agriculture pegged soybean stocks at 999 million bushels, above trade guesses of 935 million. Higher soybean stocks for crushing into soybean oil may shift some demand away from competing palm oil.

Palm oil prices also came under pressure ahead of export data next week that traders will scour for clues on whether demand is strong enough to whittle down high stockpiles in Malaysia, the second-largest producer. "Overall, the news of significantly higher-than-expected U.S. soybean stockpiles but slightly lower than expected soybean planting acreage is negative to crude palm oil (CPO) prices due to its strong correlation with soybean oil prices," Alan Lim Seong Chun, research analyst with Malaysia's Kenanga Investment Bank, said in a note to clients on Friday. "Nevertheless, we think that CPO prices' downside is limited as we expect a CPO seasonal demand recovery in the near term due to warmer weather in the northern hemisphere."       

The benchmark June contract on the Bursa Malaysia Derivatives Exchange lost 1.4 percent to 2,378 ringgit ($768) per tonne by Friday's close. Prices earlier fell to 2,376 ringgit, the lowest since March 15. Total traded volume stood at 19,429 lots of 25 tonnes each, slightly thinner than the usual 25,000 tonnes. The edible oil ended the first quarter of the year 2.5 percent lower as high stocks in top producers Indonesia and Malaysia weighed, although easing inventory levels should provide support for prices in the coming months. Stockpiles in Malaysia hit a record 2.63 million tonnes in December but have since gradually eased to 2.44 million tonnes in end-February. Market players are expecting March export data due on Monday to gauge how much demand will eat into stocks. "Investors are waiting for Monday's full month export figures. At least then there is a clue as to where stocks will be heading to," said a trader with a foreign commodities brokerage in Malaysia.

In other vegetable oil markets, the most-active September soybean oil contract on the Dalian Commodities Exchange fell 1.7 percent in late Asian trade. The Brent crude futures markets and the U.S. soybean markets were shut for the Good Friday holiday.            [Reuters]

Crude palm oil futures on Malaysia’s derivatives exchange ended lower Thursday, reflecting investor concerns about export demand and jitters over the possible impact of capital controls in Cyprus.          [Dow Jones Newswire]

Today’s Support and Resistance for benchmark June contract is located around 2,340 and 2,400 respectively.

FKLI Related News (Mon, Apr 1)

Last Friday, the US market was closed for Easter holiday while the Asian markets showed mixed performance amid poor economic data from Japan, and quiet trading due to the Easter holiday with markets in Australia, Hong Kong and Singapore closed.

Share prices on Bursa Malaysia will likely trend lower this week due to an overbought situation. Affin Investment Bank Vice President and Head of Retail Research Dr Nazri Khan said the benchmark FBM KLCI is now ripe for a pullback after hitting an all-time high of 1688 last year. “Uncertainty over the domestic political situation may have had some impact on the Malaysian market, with most investors now expecting the general election to be called any time now,” he told Bernama.

FKLI spot month contract opened higher this morning at 1,666. Today’s Support and Resistance for April contract is located around 1,644 and 1,668 respectively.

FCPO Related News (Fri, Mar 29)

KUALA LUMPUR, March 28 (Reuters) - Malaysian palm oil futures fell to a more-than-one-week low on Thursday, with investors avoiding risky moves as they await key industry export data due next week. Fears over Cyprus's bailout deal damaging the euro zone's fragile recovery roiled global financial and commodity markets, including palm, most of this week and kept investors on edge.

Palm's dismal export performance in the first 25 days of the month also upset market players and weighed on prices, which have lost more than three percent this week. Exports fell 7.5 percent over the period from March 1 to 25, from a month ago, due to a slowdown in shipments of crude palm oil. Traders are now waiting for cargo surveyor data on exports for the full month, due next Monday, and industry regulator data on output and inventory, due in mid-April, to gauge palm's direction in the coming months. "The market is consolidating and is still unsure -- there's no new factor currently moving this market," said a trader with a foreign commodities brokerage in Malaysia. "Everything depends on the production in March. If production this month is lower, then you will see stocks breaking below 2 million tonnes, for sure," he added.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange lost 1.5 percent to 2,411 ringgit ($779) per tonne by the close, which is also its intraday low, a level unseen since March 19. Total traded volume stood at 43,185 lots of 25 tonnes each, higher than the average 35,000 tonnes seen so far this year. Technicals for the next quarter were bearish for Malaysian palm oil. Prices are expected to fall to 1,953 ringgit, indicated by its wave pattern and a Fibonacci ratio analysis, said Reuters market analyst Wang Tao.

Stockpiles in February in Malaysia, the world's No.2 producer, inched down 5 percent from January to stand at 2.44 million tonnes now. Stocks had hit a record high of 2.63 million tonnes in December as strong production and tepid global demand caused prices to tumble more than 20 percent in 2012.

Traders say total exports of palm oil products in March need to rise above 1.5 million tonnes for prices to recover, but also stressed that output of the vegetable oil would play a big role. "It's very critical this month. If the base production is low this month, then for the next few months you'll still have a low base," the Malaysia-based trader said.

In other markets, Brent futures held above $109 a barrel on Thursday on hopes of a revival in demand growth in the world's biggest consumer, the United States, following a surprise fall in product inventories, while worries over Europe's debt problems capped gains.  In vegetable oil markets, U.S. soyoil for May delivery lost 0.4 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange closed 0.8 percent lower.

Today’s Support and Resistance for benchmark June contract is located around 2,366 and 2,425 respectively.

FKLI Related News (Fri, Mar 29)

The benchmark S&P 500 stock index set a record closing high while the euro rose from a four-month low as banks in Cyprus reopened to relative calm on Thursday after the island's controversial bailout that taxed large depositors. Natural gas and cotton prices fell on Thursday but posted quarterly double-digit percentage gains to lead commodities higher in the first three moths, as U.S. markets wrapped up trading for March ahead of the Good Friday holiday.

FKLI spot month contract opened higher this morning at 1,677 following U.S S&P 500’s record closing high. Today’s Support and Resistance for March contract is located around 1,660 and 1,680 respectively.

FCPO Related News (Thurs, May 28)

SINGAPORE, March 27 (Reuters) - Malaysian palm oil futures inched up on Wednesday on expectations that lower production may ease stocks further, but worries over the euro zone curbed appetite for risk. Losses in palm oil early in the week may also have lured some buyers back into the market. The tropical oil has lost around 1.8 percent so far this week, weighed down by weaker export demand and uncertainty surrounding Cyprus's bailout deal. "Yes, exports were lower (for the first 25 days), but we expect them to pick up for the full month. Stocks could dip to 2.35 million tonnes or lower," said a trader with a foreign commodities brokerage in Malaysia.

By the market close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had gained 0.4 percent to 2,447 ringgit ($789) per tonne. Prices traded in a tight range 2,430 to 2,467 ringgit. Total traded volume stood at 34,133 lots of 25 tonnes each, higher than the usual 25,000 lots. Technicals for the next quarter were bearish, as palm oil is expected to fall to 1,953 ringgit, indicated by its wave pattern and a Fibonacci ratio analysis, said Reuters market analyst Wang Tao.

But traders are still counting on a recovery in demand to support prices after a surprise drop in shipments for the first 25 days of March as major buyer India bought less of the crude grade. Cargo surveyors will release export data for the full month on Monday. Overseas investors also stayed on the sidelines ahead of a planting intentions report on soybeans by the U.S. Department of Agriculture on Thursday.

In other markets, Brent crude held above $109 a barrel late on Wednesday in Asia as robust U.S. data which brightened the outlook for demand from the world's biggest oil consumer outweighed worries over the euro zone. In other vegetable oil markets, U.S. soyoil for May delivery gained 0.2 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange closed 0.6 percent higher.

Today’s Support and Resistance for benchmark June contract is located around 2,395 and 2,450 respectively.

FKLI Related News (Thurs, May 28)

NEW YORK (Reuters) - Stocks rebounded from early declines to close little changed on Wednesday, but investors were still worried about the chance of a run on Cypriot banks and its possible implications for other euro-zone lenders. Financial shares fell on both sides of the Atlantic on concerns that depositors at banks in other euro-zone countries will withdraw large amounts of money. Investors are worried that the Cyprus bailout would become a template for solving banking crises in the region.

The S&P 500 fell 0.8 percent in morning trading, but in line with recent market behavior, investors took the drop as a buying opportunity. By the close, late buying had helped the S&P 500 cut most of the session's losses to end down less than a point. The benchmark S&P 500 has traded within 10 points of its record closing high for 13 consecutive days, without once moving above the 1,565.15 level set October 9, 2007. It is on track to post its fifth consecutive month of gains. "Any time you have a run like we've had, market participants will look for a reason to take profits," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston. "But pauses in this uptrend have been short and shallow. Everybody seems to want to buy in the slightest pullback."

Cypriot banks are due to reopen on Thursday while limiting withdrawals, banning checks and curbing the use of Cypriot credit cards abroad, after being closed for almost two weeks. Uninsured deposits in Cyprus are expected to be reduced as part of the rescue deal. The Dow Jones industrial average (.DJI) fell 33.49 points or 0.23 percent, to 14,526.16 at the close. The S&P 500 (.SPX) lost just 0.92 of a point, or 0.06 percent, to finish at 1,562.85. The Nasdaq Composite (.IXIC) added 4.04 points or 0.12 percent, to close at 3,256.52.

Data showed contracts to buy previously owned U.S. homes fell in February, held back by a shortage of properties, but there was little to suggest that the housing market recovery was stalling. The PHLX housing sector index (.HGX) edged up 0.12 percent. Volume was light, with some market participants out for the observance of Passover. About 5.1 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, one of the lowest volume levels so far this year, and far below the daily average so far this year of about 6.4 billion shares. Advancers outnumbered decliners on the New York Stock Exchange by a ratio of about 8 to 7. On the Nasdaq, about 13 stocks fell for every 12 that rose.          [Reuters]

Stocks on Bursa Malaysia extended its gains for the third day consecutively and closed higher driven by the bullish regional bourses on positive economic data emerging from the US. FKLI spot month opened slightly lower this morning at 1,674 as Wall Street ends flat on late buying as a result of lingering Cyprus woes. 

Today’s Support and Resistance for March contract is located around 1,658 and 1,678 respectively.

FCPO Related News (Wed, Mar 27)

SINGAPORE, March 26 (Reuters) - Malaysian palm oil futures edged lower on Tuesday in rangebound trading amid concerns over lower export demand, while worries about the potential impact of a Cyprus bailout scheme also dented investor appetite for riskier assets. Cyprus's deal with international lenders to shut down the country's second largest bank in return for 10 billion euros in rescue funds removed the immediate risk of a financial meltdown, but it also stoked fears of similar tough conditions for future

bank rescues in the euro zone.

   

Palm oil came under more pressure as Malaysian exports fell by 7.5 percent for March 1 to 25 compared to a month ago due to a slowdown in crude palm oil shipments. "The market is stuck and it's looking for further direction. We are looking at 2,400 ringgit for support," said a trader with a local commodities brokerage in Malaysia. By market close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had lost 0.8 percent to 2,442 ringgit ($788) per tonne. Prices traded in a tight range from 2,426 to 2,452 ringgit.

Total traded volume stood at 22,264 lots of 25 tonnes each, thinner than the usual 25,000 lots as most investors were waiting for further trading cues. Market players are counting on seasonally slower production in Malaysia, the world's second-largest palm producer, to bring stocks down this month.     Inventory level stood at 2.44 million tonnes in February with leading analyst Dorab Mistry forecasting a drop below 2 million tonnes in June. Traders are also looking out for export data for the full month to see if demand is strong enough to offset imports and production. A surprise drop in shipments for the first 25 days of March due to lower exports to major buyers Europe and India may continue to weigh on the market.     

   

In other markets, Brent fell slightly, remaining within its range of the past two weeks, as the effect of the Cyprus bailout faded and traders saw little direction for the market. In vegetable oil markets, U.S. soyoil for May delivery lost 0.2 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange closed 0.4 percent lower.             [Reuters]

Today’s Support and Resistance for benchmark  June contract is located around 2,425 and 2,466 respectively.

FKLI Related News ( Wed, Mar 27 )

NEW YORK, March 26 (Reuters) - U.S. stocks gained on Tuesday, pushing the S&P 500 within striking distance of its all-time closing high, as strong data on home prices and manufacturing fed optimism about the economy, although the improvements were seen as slow. The S&P 500 made yet another attempt at a record, but failed to break above the all-time closing high for the second day this week.

At Tuesday's close, the S&P 500 was only 1.38 points below its lifetime closing high. On Monday, the benchmark index traded just a quarter point below its record closing high, which stands at 1,565.15 set on Oct. 9, 2007, and then retreated as investors sold some equities to cash in on gains in the wake of the news out of Europe. Data showed U.S. single-family home prices rose in January at the fastest pace in more than six years, while long-lasting U.S. manufactured goods, also known as durable goods orders, shot up in February.

The Dow Jones industrial average rose 111.90 points, or 0.77 percent, to end at 14,559.65. The Standard & Poor's 500 Index gained 12.08 points, or 0.78 percent, to finish at 1,563.77. The Nasdaq Composite Index advanced 17.18 points, or 0.53 percent, to close at 3,252.48. The CBOE Volatility Index or VIX, Wall Street's favorite barometer of investor anxiety, fell 7.1 percent to close at 12.77. In a sign that growth continues to be slow, sales of new U.S. single-family homes fell more than expected in February, and the latest reading on consumer confidence was weaker than expected.Shares of homebuilding stocks were mixed.

But investors remained concerned about the negative implications of a financial rescue plan for Cyprus. They worried that it would serve as a template for other euro-zone economies requiring bailouts. Banks in Cyprus will remain closed until Thursday and will then be subject to capital controls to prevent a run on deposits. President Nicos Anastasiades said late on Monday that a 10-billion-euro ($13 billion) rescue plan approved over the weekend was "painful" but essential to avoid economic meltdown.

In Tuesday's session, volume was lighter than usual with some market participants absent for the observance of the Jewish holiday of Passover. Volume was roughly 5.2 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion. Advancers outnumbered decliners on the New York Stock Exchange by a ratio of about 7 to 3. On the Nasdaq, seven stocks rose for every five that fell.

The FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.94 points to end at 1,652.83, the highest since March 13, 2013 despite the decline in share prices on major regional markets due to concerns over risks in the Cyprus financial bailout by the International Monetary Fund and European Union. FKLI spot month contract opened higher this morning at 1,657.50. 

Today’s Support and Resistance for March contract is located around 1,650 and 1,668 respectively. 

FCPO Related News (Tues, Mar 26)

[ Malaysia March 1-25 Palm Oil Exports 1.06 million tons, down 7% - SGS]

Malaysian palm oil futures fell on Monday on weaker exports, although losses were limited as a last-ditch deal to bailout Cyprus supported investor appetite for riskier assets. Cyprus clinched a deal with international lenders for a 10 billion euro ($13 billion) bailout, sending global markets including crude oil and the euro higher. But palm oil came under pressure as Malaysian exports fell to 1,055,914 tonnes in the first 25 days of the month, a 7 percent slide compared to the same period last month.

Data from cargo surveyors also showed a slowdown of shipments to major edible oil buyers India, the United States and the European Union. "We saw a drop in exports to India ... Indian buyers last month did not book that many shipments for March in advance on uncertainty of the tax change," said a Singapore-based trader with a global commodities house. Indian buyers avoided booking cargoes for March in advance as they expected the government to use its budget in late February to announce a hike in import tariffs, although that did not materialise.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange had lost 1.3 percent to 2,460 ringgit ($794) per tonne by Monday's close. Intraday prices touched a high of 2,505 ringgit, the highest level since Feb. 22, but failed to rally. Total traded volume stood at 35,577 lots of 25 tonnes each, much higher than the usual 25,000 lots.

Leading analyst Dorab Mistry has forecast palm oil futures could trade between 2,400 and 2,700 ringgit per tonne by the end of May due to lower stocks and output, an upward revision from his previous forecast. He also expects Malaysian palm oil stocks to drop below 2 million tonnes in June. "We generally agree with Dorab Mistry’s short-term view ... However, we do not think Malaysia palm oil inventory will reach 2 million tonnes as we believe it should reach the lowest level of 2.27 million tonnes by April 2013," Alan Lim Seong Chun, research analyst with Malaysia's Kenanga Investment Bank, said in a note to clients. Palm oil stocks in Malaysia, the world's second-largest palm producer, stood at 2.44 million tonnes in end-February and traders are counting on seasonally slower production and healthy demand to bring stocks down.

In other markets, Brent rose above $108 on Monday, as hopes brightened for a revival in demand after euro zone ministers approved an EU-IMF plan for restructuring Cyprus's banking sector, averting a worsening crisis for the region. In other vegetable oil markets, U.S. soyoil for May delivery edged down 0.3 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange fell 0.2 percent.

Today’s Support and Resistance for benchmark June contract is located around 2,438 and 2,500 respectively.

FKLI Related News (Tues, Mar 26)

NEW YORK (Reuters) - Stocks fell on Monday on renewed concerns about the developments in Cyprus and the euro zone, which wiped away earlier gains that drove the S&P 500 index to less than a point away from its record close. Stocks fell after Jeroen Dijsselbloem, who heads the Eurogroup of euro-zone finance ministers, told Reuters and the Financial Times that when failing banks need rescuing, euro-zone officials would turn to the bank's shareholders, bondholders and uninsured depositors to contribute to their recapitalization.

He also said that Cyprus was a template for handling the region's other debt-strapped countries. Before his remarks, the Dow industrials hit yet another record intraday high and the S&P 500 edged closer to its highest closing level ever on Monday after negotiators reached a deal to keep Cyprus afloat with a financial bailout and avert the country's possible exit from the euro zone. 

Banking shares were among the day's top decliners. Shares of Morgan Stanley (MS.N) fell 1 percent to $21.97 while Bank of America (BAC.N) dropped 1.3 percent to $12.40. The Dow Jones industrial average (.DJI) slipped 64.28 points, or 0.44 percent, to end at 14,447.75. The Standard & Poor's 500 Index (.SPX) dipped 5.20 points, or 0.33 percent, to 1,551.69. The Nasdaq Composite Index (.IXIC) declined 9.70 points, or 0.30 percent, to close at 3,235.30. Earlier, the Dow climbed to an intraday record high of 14,563.75.

In company news, Dell Inc (DELL.O) said it received alternative proposals from Blackstone (BX.N) and billionaire investor Carl Icahn that could be superior to the $24.4 billion offer from founder Michael Dell and private equity fund Silver Lake Partners last month. Dell shares rose 2.6 percent to $14.51. Merger and acquisition activity has been among the reasons for stocks' stellar performance so far this year. Volume was roughly 5.8 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion. Decliners outnumbered advancers on the NYSE by a ratio of about 3 to 2, while on the Nasdaq, about 13 stocks fell for every 12 that rose.          [Reuters]

Southeast Asia stock markets gained in larger regional markets after Cyprus and the European Union agreed on a plan to tackle the island’s financial crisis. Malaysia gained 1 percent to 1,643.89 as foreign investors bought shares worth 326 million ringgit ($105 million), stock exchange data showed. FKLI spot month contract opened slightly lower this morning at 1,651.50 as U.S stocks fell on Monday on renewed concerns about the developments in Cyprus and the eurozone. 

Today’s Support and Resistance for March contract is located around 1,640 and 1,668 respectively. 

FCPO Related News (Mon, Mar 25)

[ Malaysia Mar 1-25 Palm Oil Export 1.07 million tons, down 7.5% - ITS]

Crude palm-oil futures on Malaysia’s derivatives exchange rose to their highest for a month on Friday as investors covered short positions on easing stockpiles at a time when palm oil yields remain weak. The benchmark June contract on Bursa Malaysia Derivatives rose as much as 2% to 2,503 ringgit a ton, a level not seen since Feb. 22. The contract ended at 2,494 ringgit a metric ton–up 1.5% from Wednesday’s close. Palm-oil prices are up 3.2% this week on expectations firmer export numbers from cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd., could help to draw down stockpiles that reached 2.44 million tons at end-February in Malaysia.

Price-supportive outlook by eminent oilseed analyst Dorab Mistry provided the catalyst for further gains, a trading executive at a Kuala Lumpur-based brokerage said. "The bears rushed to cover short positions after price sailed past MYR2,480/ton," he said and tips prices to rally toward MYR2,547/ton next week. Yields in the current low-production cycle have begun to decline sharply, said Dorab Mistry, who heads the edible oils trading desk at London-based Godrej International Ltd. "This means the low cycle is projected to be somewhat more severe than anticipated." Output of palm oil generally falls in the November-March period before yields improve and peak around September-October period.

Mr. Mistry now expects palm-oil production in the first half of 2013 to be lower than expected and may help to draw-down palm-oil stockpiles in the world’s No. 2 producer "significantly." "Malaysian stocks [may] dip below 2 million tons in June," Mr. Mistry told an industry conference in Beijing. He also revised his near-term outlook on prices and now tips palm oil on Malaysia’s derivatives exchange to trade within a 2,400 ringgit-2,700 ringgit a ton range until end-May. At an industry conference earlier this month in Malaysia, he tipped prices to trade in a MYR2,300-MYR2,500/ton until end-April. Open interest on the BMD was 169,633 lots versus 166,419 lots on Thursday. One lot is equivalent to 25 tons. A total of 48,750 lots of CPO were traded versus 39,194 lots on Thursday.          [Dow Jones Newswire]

Palm prices were lifted by Malaysian palm oil exports that rose 11 percent for the March 1-20 period to 927,665 tonnes, up from 835,612 tonnes a month ago, according to cargo surveyor Intertek Testing Services. Another cargo surveyor, Societe Generale de Surveillance, reported a 14 percent increase for the same period. "If exports continue at this rate, we will see a figure of around 1.4-1.5 million tonnes for the full month," said a trader with a foreign commodities brokerage in Malaysia. "Stocks will come down even more and this trend may continue into April." "Exports in March should be much better than February's. With exports up and production going down, end-stocks in March could go below 2.35 million tonnes," said a trader with a foreign commodities brokerage in Kuala Lumpur.     

   

Also playing on general market sentiment were concerns about a possible debt default by Cyprus, which could hit the euro zone's fragile recovery and crimp edible oil demand.  Traders will be looking out for the next export data due on Monday as they say demand needs to pick up faster to bring stockpiles to comfortable levels. Record stocks last year had dragged prices down more than 20 percent, palm's worst performance since the 2008 global financial crisis.

  

In other markets, Brent crude held above $107 a barrel, but was still on track for a second straight week of losses, as Cyprus scrambled to raise money to avert a financial meltdown that could disrupt the eurozone's recovery and diminish its oil demand.  In other vegetable oil markets, U.S. soyoil for May delivery  was almost flat in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange inched down 1 percent.             [Reuters]

Today's Support and Resistance for benchmark June contract is located around 2,460 and 2,510 respectively.

FKLI Related News (Mon, Mar 25)

U.S. stocks gained ground Friday, nearly erasing the week's losses for the Dow industrials as investors started to look past the latest euro-zone debt drama. For European markets, however, it was a different story, as the turmoil in Cyprus continued to damp sentiment. The Dow Jones Industrial Average advanced 90.54 points, or 0.6%, to 14512.03 Friday, bouncing back from a 90-point slide on Thursday, which was its biggest one-day loss since Feb. 25.

Cyprus's effort to secure a bailout from its euro-zone partners raised concerns about the region's woes this week. The Standard & Poor's 500-stock index added 11.09 points, or 0.7%, to 1556.89. The Nasdaq NDAQ +1.00%Composite Index rose 22.40 points, or 0.7%, to 3245.00.  About 5.3 billion shares changed hands, 16% below the average daily volume for U.S. stocks this year. A deadline looms on Monday that could result in the European Central Bank withdrawing support from Cyprus's banking system. 

The Cypriot episode has led to losses for U.S. stocks in recent days. For the week, the S&P 500 fell 0.2%, just its second weekly decline this year. The Dow ended the week lower by just two points, or less than 0.1%. The Stoxx Europe 600 fell 0.1%, capping its biggest weekly loss since mid-November. Germany's DAX slid 0.3%. Demand for Treasury prices rose as investors sought a haven, sending the yield on the 10-year note down to 1.915%.

In addition to signs of recovery, bulls are pointing to continued stimulus from the Federal Reserve, said Paul Nolte, managing director at Dearborn Partners, which manages about $4 billion in Chicago.  Among U.S. stocks, consumer-oriented shares in the S&P 500 led gains across all 10 of the index's sectors. Nike NKE +11.06%jumped after reporting a quarterly profit that beat analysts' expectations, amid higher global shoes and apparel sales.

In Asia, Japanese stocks declined, as a strengthening yen undermined exporters' shares. The Nikkei Stock Average slid 2.4%. The yen was on track to close at a 2½-week high against the dollar amid disappointment that the new Bank of Japan governor renewed his pledge to expand monetary easing but gave no indication of new, more aggressive stimulus measures. Meanwhile, China's Shanghai Composite Index and Australia's S&P ASX 200 both gained. Crude-oil prices gained 1.4%, to settle at $93.71 a barrel, while gold eased 0.5%, to settle at $1,606.20 a troy ounce. The dollar lost ground against the euro.          [The Wall Street Journal]

Malaysian shares finished lower on Friday at 1626.89, tracking declines in regional equities on continued worries over Cyprus’ bailout deal.  FKLI spot month contract opened unchanged this morning at 1,624.5 as jittery investors continue to lock in gains ahead of the much anticipated national elections. Today’s Support and Resistance for March contract is located around 1,615 and 1,634 respectively.

FCPO Related News (Wed, Mar 20)

[ Malaysia March 1-20 Palm Oil Export 927, 665, up 11% on month - ITS]

Malaysian palm oil futures rebounded on Tuesday on bargain-hunting a day after a radical Cyprus bailout proposal had prompted declines, although gains were capped as uncertainty remained ahead of a vote on the plan. Cyprus was set to reject a divisive tax on bank deposits in a vote on Tuesday, pushing the island closer to a debt default and banking collapse. The proposal announced over the weekend triggered declines in the global commodities and financial markets on Monday.  

Palm oil traders were also looking ahead to Malaysia's March 1-20 export data on Wednesday for better indication of export demand after nearly flat growth in shipments for the first half of the month. "Market players are hoping for higher exports to help ease stocks further," said a trader with a foreign commodities brokerage in Malaysia. The country's palm inventory level fell to 2.44 million tonnes in February from January's 2.58 million tonnes on seasonally slower production. By market close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had gained 1.3 percent to 2,417 ringgit ($777) per tonne. Prices traded in a range between 2,397 to 2,426 ringgit.

Palm oil futures also drew some support from stronger soybean and soybean oil prices, after the oilseed edged higher on supply concerns from South America. Palm oil tracks soybean oil prices closely as they are typically used as substitutes for one another. In other markets, Brent crude fell below $109 a barrel on Tuesday as uncertainty over the Cyprus bailout plan revived concerns about the euro zone debt crisis, although a rosier economic outlook in the United States capped losses.   In other vegetable oil markets, U.S. soyoil for May delivery gained 0.1 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange also gained 0.8 percent.

Technical analysis shows Malaysian palm oil looks neutral in a range of 2,383 to 2,460 ringgit per tonne, and an escape will point a future direction, said Reuters market analyst Wang Tao. .          [Reuters]

Palm oil demand usually falls in winter as the tropical oil tends to cloud and turns jelly-like in cold weather. While palm oil has recovered some lost ground, any gains in the tropical oil–found in a wide variety of consumer products ranging from soap to chocolate and biscuits–is limited for now, due to a widely-expected bumper soy crop from South America and ample palm oil supply in Southeast Asia. "Exports could nudge higher in March, but I doubt the numbers will be good enough to ease stockpiles [at the end of March]," a trading executive in Singapore said.

Open interest on the BMD was 165,076 lots, versus 166,353 lots Monday. One lot is equivalent to 25 tons. A total of 31,142 lots of CPO were traded versus 27,137 lots Monday.           [Dow Jones Newswire]

Today’s Support and Resistance for benchmark June contract is located around 2,397 and 2,442 respectively.

FKLI Related News

NEW YORK (Reuters) - The S&P 500 fell for a third day on Tuesday but pared losses late in the day after the parliament of Cyprus rejected a proposed tax on bank deposits. The proposed tax on savings in banks had been a condition of a European bailout. When the Cypriot parliament rejected the tax, the decision eased worries that savers will begin withdrawing funds. At the same time, it left efforts to rescue the country - the latest casualty of the euro-zone debt crisis - up in the air. "Regardless of the vote in Cyprus, we still have the problem. No one knows: 'What is the Cypriot financial restructuring going to look like?'" sad Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.

Banks in Cyprus will remain closed until Thursday. The S&P 500's retreat followed a long streak of gains where the index came close to hitting its all-time closing high set in 2007. The S&P 500 is still on track to post its best quarter in a year. The benchmark S&P 500 is up 8.4 percent for the year, while the Dow is up 10.3 percent. Energy shares led the day's decline following a drop in oil prices and a slide in the shares of oil services companies. The Dow Jones industrial average (.DJI) edged up 3.76 points, or 0.03 percent, to close at 14,455.82. The Standard & Poor's 500 Index (.SPX) fell 3.76 points, or 0.24 percent, to finish at 1,548.34. The Nasdaq Composite Index (.IXIC) slipped 8.50 points, or 0.26 percent, to close at 3,229.10.

During the session, the S&P 500 traded as low as 1,538.57. The S&P's swing from its intraday high to that session low covered 18.68 points. Strategists expect the S&P 500 to still break above its record high reached in October 2007, but they expect the rally to slow from there. A Reuters poll of equity strategists surveyed over the past week put the S&P 500 at 1,600 by year end, above its October 9, 2007, all-time closing high of 1,565.15. The Dow initially surpassed its 2007 record levels on March 5 and then set nominal record closing highs on subsequent session through the close on March 14.

European bank shares extended Monday's decline, with the sector's index (.SX7P) down 2.1 percent on Tuesday. "Whether the deposit levy occurs or not, the fact that it was agreed to by the EU means that claims on private property are not out of bounds, which pretty much says that nothing is out of bounds," said Fred Copper, senior portfolio manager, international equity, at Boston-based Columbia Management, in reference to the banking crisis in Cyprus. U.S. economic data added to upbeat views on the housing sector. Housing starts data showed that groundbreaking to build new U.S. homes climbed in February and new permits for construction rose to their highest since 2008, in a sign the U.S. housing market's recovery was building momentum. The PHLX housing sector index (.HGX) rose 0.3 percent to end at 191.79, after earlier climbing to 194.41 - its highest level since late July 2007.          [Reuters]

The FBM KLCI erased losses to end the day in positive territory yesterday, as investors bargain-hunted for short term gains following a decline in the broader market, fund managers said. Investors are waiting for the Malaysian Prime Minister to announce the dissolution of Parliament. The 13^th general election must be held by end-April and many cautious and risk-averse investors have scaled down their holdings in the local market. FKLI spot month contract opened lower this morning at 1,620.50 as Eurozone uncertainty continues.

Today’s Support and Resistance for March contract is located around 1,608 and 1,626 respectively.

FCPO Related News ( Tues, Mar 19)

SINGAPORE, March 18 (Reuters) - Malaysian palm oil futures edged lower on Monday, as traders turned cautious after a radical bailout proposal for Cyprus rattled investors and triggered a broad-based decline in commodities and financial markets.

Euro zone finance ministers asked Cyprus savers to forfeit a portion of their deposits in return for a 10 billion euro ($13 billion) bailout for the island, sparking fears of fresh turmoil in the euro zone and worries about global demand. "It seems like Europe is back to the headlines for the wrong reasons," said Ker Chung Yang, investment analyst with Phillip Futures in Singapore. "We have probably seen the last of the rally last week, and this week could be the beginning of a downturn or corrections in the commodities market."

The benchmark June contract on the Bursa Malaysia Derivatives Exchange fell 1.4 percent to close at 2,383 ringgit ($761) per tonne, also its low for the day. Prices traded in a tight range between 2,383 to 2,415 ringgit. Total traded volume stood at 27,137 lots of 25 tonnes each, slightly higher than the usual 25,000 lots. Technical analysis indicates Malaysian palm oil is expected to revisit its March 14 low of 2,360 ringgit per tonne, as a rebound from this level has completed, said Reuters market analyst Wang Tao.

Palm oil futures also continued to come under pressure from a weak soy market, which is suffering from poor U.S. demand and higher South American supply, losing 1.4 percent last week. But seasonally lower output in Malaysia may help ease palm oil stocks and support prices, especially after cargo surveyor data on Friday showed firm export demand. Malaysian palm oil shipments for the first half of the month were slightly better compared to the same period last month, with cargo surveyors Intertek Testing Services and Societe Generale de Surveillance reporting a 0.2 and 4.6 percent increase respectively.

In other markets, crude oil dropped to below $109 a barrel on Monday as stock markets tumbled and the dollar strengthened on the bank bailout proposal for Cyprus. In other vegetable oil markets, U.S. soyoil for May delivery lost 0.8 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange also dropped 0.4 percent.          [Reuters]

Today’s Support and Resistance for benchmark June contract is located around 2,380 and 2,435 respectively.

FKLI Related News

NEW YORK (Reuters) - Stocks fell on Monday after a plan to tax bank accounts in Cyprus to help pay for the country's bailout stoked worries that it could threaten the stability of financial institutions in the euro zone. The move pushed the S&P 500 farther from its 2007 record closing high of 1,565.15 after the index came within striking distance of the level last week. Financial stocks led the day's decline, with the S&P 500 financial index (.SPSY) down 1 percent, following a steep slide in European bank shares. JPMorgan Chase (JPM.N) fell 1 percent to $49.51.

Cypriot ministers were trying to revise a plan to seize money from bank deposits before a parliamentary vote on Tuesday that will secure the island's financial rescue or could lead to its default. European officials have said the measure is a one-off for a country that accounts for just 0.2 percent of European output. The fear is that savers in larger European countries will become nervous and start withdrawing funds, although there was no immediate sign of that on Monday. "Will authorities be able to convince markets that this proposal is only for this unique situation, for such a small country where the banking system is more of a tax shelter? If they can't, that might cause new concerns about Europe's banking system."

The Dow Jones industrial average (.DJI) slipped 62.05 points, or 0.43 percent, to 14,452.06 at the close. The Standard & Poor's 500 Index (.SPX) shed 8.60 points, or 0.55 percent, to 1,552.10. The Nasdaq Composite Index (.IXIC) dropped 11.48 points, or 0.35 percent, to close at 3,237.59. Earlier in the day, the Dow had lost more than 100 points to tumble to an intraday low of 14,404.21. The Dow, which broke through its 2007 record highs on March 5, is still up about 10.3 percent for the year.   [Reuters]      

SHARE prices on Bursa Malaysia finished mostly lower yesterday, in line with the broader weaknesses in regional markets, dealers said.  The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) however, bucked the  overall weak trend to finish 1.26 points higher at 1,685.89, lifted by gains in key heavyweights. Dealers said the cautious sentiment set in on concerns over the ongoing US fiscal problems and weak corporate earnings for the first quarter.

FKLI spot month contract opened slightly higher this morning at 1,618.50. Today’s Support and Resistance for March contract is located around 1,610 and 1,635 respectively.

FCPO Related News (Mon, Mar 18)

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Friday, with investors covering short positions following recent declines, market participants said. The benchmark May CPO on Bursa Malaysia Derivatives ended 1.6% higher at 2,415 ringgits a ton. Palm oil prices fell to their lowest level in two months on Thursday, reflecting investor concern about the upcoming South American soybean crop which is expected to boost global oilseed and vegetable oil supplies.

Modest gains in palm oil export demand during the March 1-15 period lifted sentiment, a trading executive at a Kuala Lumpur-based brokerage said. "The bears were forced to cut losses and covered short positions after the market rose past MYR2,400/ton today," the executive said. Cargo surveyor Intertek Agri Services said March 1-15 shipments rose 0.2% from a month earlier to 675,210 tons, while another surveyor SGS (Malaysia) Bhd. said exports for the period rose 4.6% to 678,829 tons. "Seeing as there’s no clear direction this week, we expect players to remain on sidelines until there’s a significant breakout from the MYR2,200-MYR2,600/ton range," a technical analyst at a foreign brokerage said.

Open interest on the BMD was 162,374 lots versus 163,195 lots Thursday. One lot equals 25 tons. A total of 40,301 lots of CPO were traded versus 29,364 lots Thursday.           [Dow Jones Newswire]

Today’s Support and Resistance for benchmark June contract is located around 2,375 and 2,430 respectively.

FKLI Related News (Mon, Mar 18)

NEW YORK (Reuters) - Stocks slipped on Friday, ending the Dow Jones industrial average's longest winning streak since 1996 as investors paused just below the S&P 500's record high. A decline in JPMorgan Chase shares after the bank was hit by a one-two punch of bad news also weighed on the market. Equities have rallied since the start of the year on signs of improvement in the economy and supported by the Federal Reserve's efforts to bolster the recovery.

JPMorgan Chase & Co (JPM.N) was the biggest drag on the S&P 500 and one of the biggest weights on the Dow, falling 1.9 percent to $50.02. The Federal Reserve told JPMorgan and Goldman Sachs Group Inc (GS.N) that they must fix flaws in how they determine capital payouts to shareholders, though the central bank still approved their plans for share buybacks and dividends. A Senate report alleged that JPMorgan had ignored risks, misled investors, fought with regulators and tried to work around rules as it dealt with mushrooming losses in a derivatives portfolio.

A busy day of economic reports reinforced investors' view that the economic recovery has momentum to it. Manufacturing output bounced back in February, though the pace of manufacturing growth in New York state cooled slightly in March and consumer sentiment fell.The S&P 500 retail sector index (.SPXRT) lost 0.8 percent after the consumer sentiment data from Thomson Reuters/University of Michigan. Consumer prices registered their biggest increase in nearly four years as the cost of gasoline rose. But a smaller gain in the core U.S. Consumer Price Index, which excludes volatile food and energy prices, left the door open for the Federal Reserve to continue its bond-buying program, which has contributed to the stock market's rally.          [Reuters]

Stocks on Bursa Malaysia ended broadly lower last Friday with persistent selling in heavyweights, led by Maybank. FKLI spot month contract opened lower this morning at 1,618 as Dow retreats from 10-day rally. Today’s Support  and Resistance for March contract is located around 1600 and 1620 respectively.

FCPO Related News (Fri, Mar 15)

[Malaysia Mar 1-15 Palm Oil Exports, 675,210 Tons - ITS, up 0.2 %. Malaysia maintains April Crude Palm Oil Export Tax at 4.5% ]

SINGAPORE, March 14 (Reuters) - Malaysian palm oil futures fell to a two-month low on Thursday, dropping for a third straight session on persistent weakness in soy markets, while traders watch for upcoming export data to gauge demand. U.S. soybean prices have been pressured by poor exports and increased competition from South American supplies as traders said Brazilian beans were now being offered at competitive prices. Palm oil investors are still counting on a seasonal drop-off in production that could ease stocks and support prices. Palm oil tends to track soybean oil prices closely as they are substitutes for each other.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange had slid 1.3 percent to 2,366 ringgit ($760) per tonne, just above its intraday low of 2,360 ringgit, the lowest level since Jan. 14. Technical analysis indicates palm oil is expected to fall to 2,333 ringgit per tonne, said Reuters market analyst Wang Tao.

Cargo surveyor Intertek Testing Services said Malaysia's export demand for the March 1-10 period was almost flat with a month ago, while another cargo surveyor, Societe Generale de Surveillance, reported a slight 2.2 percent increase for the same period. Palm oil prices may face further pressure as traders said significantly lower crude palm oil shipments and record high

stocks at destination ports may weigh on exports for the rest of the month.       

   

In other markets, Brent crude held steady below $109 a barrel on Thursday on concerns over demand growth from top two consumers China and the United States, while a firm dollar added pressure on prices. The most-active September soybean oil contract on the Dalian Commodities Exchange had lost 0.7 percent.          [Reuters]

The looming soybean harvest from Brazil–which is set to surpass the U.S. as the world’s biggest producer, at a time when export demand for U.S. soy is weak–weighed on CBOT soy prices. CBOT May soyoil was down 0.7% at 49.19 cents a pound by the end of trade on BMD. "Aside from the supply-side issues, investors are concerned about export demand from Malaysia. Many expect overall shipments to remain weak, as the tax rate came into effect earlier this month," a trading executive at a Kuala Lumpur-based brokerage said.

Three trading executives said separately that palm oil shipments during the March 1-15 period probably reached 665,000 tons, little changed from a month earlier. Both cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. will issue shipment data for the period Friday. "Export demand is anemic, so stockpiles aren’t likely to retreat much at the end of March," a Singapore-based physical market broker said. Stockpiles in Malaysia, the world’s no. 2 producer, rose to a record 2.63 million tons in December, before reserves eased to 2.44 million tons at end-February, according to a March 11 report by the Malaysian Palm Oil Board, the industry regulator. Investors are also awaiting the April export tax rate, scheduled to be announced Friday.

Open interest on the BMD was 163,195 lots, versus 160,370 lots Wednesday. One lot is equivalent to 25 tons. A total of 29,364 lots of CPO were traded versus 31,784 lots Wednesday.      

[Dow Jones Newswire]

Today’s Support and Resistance for benchmark  May contract is located around 2,360 and 2,420 respectively.

FKLI Related News (Fri, Mar 15)

NEW YORK, March 14 (Reuters) - The Dow Jones industrial average extended its winning streak to 10 days on Thursday, a string of gains last seen in late 1996, and ended at another record high as investors were encouraged by data showing the labor market's recovery was improving. The 30-stock Dow Jones industrial average has been setting record highs since last week, when it rallied on March 5 to initially surpass its previous lifetime closing peak set in October 2007. 

U.S. equities have accelerated their run higher without a major consolidation since the start of the year, driven by improvement in the economy and the Federal Reserve's continuation of its easy monetary policy. "It's simply a natural progression for prices to move to new highs in order for the market to advance. I don't think it's scaring investors," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. "Fund flows really have reversed direction, and money started moving out of money markets and some from fixed income to equities. This kind of trend doesn't change easily so we can expect a lot more to come in."

The Dow Jones industrial average gained 83.86 points, or 0.58 percent, to 14,539.14, a record closing high. The Standard & Poor's 500 Index rose 8.71 points, or 0.56 percent, to 1,563.23, about 2 points from its record closing high of 1,565.15, set on Oct. 9, 2007. The Nasdaq Composite Index advanced 13.81 points, or 0.43 percent, to end at 3,258.93. Three months into the year, the Dow has shot up nearly 11 percent while the S&P 500 has gained 9.6 percent. Earlier Thursday, the Dow set another lifetime intraday high at 14,539.29.

Data on Thursday offered fresh signs of strength in the U.S. labor market as the number of filings for new unemployment benefits fell for the third week in a row. The housing sector index rose 1.5 percent and the Dow Jones Transportation Average added 0.8 percent. Ten of the Dow's 30 stocks hit at least 52-week highs, including Walt Disney Co. International Business Machines shares climbed to a lifetime intraday high of $215.85, and closed at $215.80, up 1.8 percent. Energy shares led the Dow and the S&P 500 higher, with the S&P energy sector index gaining 1.3 percent. Chevron was among the Dow's biggest percentage gainers, rising 1.4 percent to $120, after earlier hitting a fresh 52-week intraday high of $120.26.

Stocks on Bursa Malaysia closed on a weaker note yesterday in moderate trading on profit-taking in most consumer stocks. On the regional front, the Asian bourses were traded mixed on concerns over China’s economic outlook. FKLI spot month contract opened unchanged this morning at 1,640.

Today’s Support and Resistance for March contract is located around 1,630 and 1,650 respectively.