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.