FCPO Related News (Wed, Apr 10)

[Malaysia April 1-10 Palm Oil Exports Up 3.5% on Month - ITS ]

Crude palm oil futures on Malaysia’s derivatives exchange end down as investors refrain from aggressive bets ahead of the March crop report and April 1-10 export estimates to be issued on Wednesday. Market chatter pins export demand at 400,000 tons-470,000 tons in the first 10 days of April, a trading executive at a Kuala Lumpur-based investment bank says. "[The] market eased during afternoon trade due partly to the strength in the ringgit to 3.0380 as refiners liquidated positions," a senior trading executive in Kuala Lumpur says.

A firmer ringgit makes CPO a more expensive feedstock for palm oil refiners and may further tighten refining margins. Market participants said last week March output probably remained flat at 1.29 million-1.30 million tons and inventories in the world’s no. 2 producer likely eased between 5%-9% to around 2.21 million tons-2.31 million tons.          [Dow Jones Newswire]

SINGAPORE, April 9 (Reuters) - Malaysian palm oil futures ended slightly lower after hitting a near two-week high on Tuesday as fears over the bird flu outbreak in China and its impact on soybean prices outweighed hopes for lower palm inventory in the Southeast Asian nation, the world's No.2 producer.

Industry regulator, the Malaysian Palm Oil Board (MPOB), will on Wednesday report stock levels for March, with a Reuters poll predicting a drop to 2.35 million tonnes from 2.44 million in February. "The rise in Dalian palm and soy and also the overnight gain in U.S. soy are helping the rally, while traders are also positioning ahead of MPOB data," said Ker Chung Yang, investment analyst with Phillip Futures in Singapore. "But the rise may be capped due to the bird flu situation in China." Traders are keeping a close watch on the development of a new strain of bird flu in China, fearing that it could cut demand for soy used in animal feed in the world's top importer of the bean, although the World Health Organization said it was no cause for panic.

Soyoil is a close competitor of palm oil and a fall in soy prices could wean away demand from palm. The benchmark June contract on the Bursa Malaysia Derivatives Exchange closed 0.2 percent lower at 2,395 ringgit ($789) per tonne. Prices earlier touched a high of 2,419 ringgit, a level last seen on March 28. Total traded volumes stood at 29,311 lots of 25 tonnes each, compared to the average 35,000 lots seen so far this year. Technicals showed palm oil is expected to rise to 2,440 ringgit, as indicated by a high-low bottom and a Fibonacci retracement analysis, said Reuters market analyst Wang Tao.

Market participants are also looking out for Malaysian palm export data for the first 10 days of April, due on Wednesday. Shipments edged slightly higher for March, the first increase in four months, thanks to higher demand for refined products. In other markets, Brent crude oil rose above $105 per barrel on Tuesday, rallying from an eight-month low after China's inflation slowed, giving it room to keep monetary policy easy and support oil demand in the world's second-biggest consumer. In vegetable oil markets, U.S. soyoil for May delivery inched up 0.1 percent in late Asian trade. The most active September soybean oil contract on the Dalian Commodities Exchange closed 0.5 percent higher.          [Reuters]

Today’s Support and Resistance for benchmark June contract is located around 2,382 and 2,419 respectively.

FKLI Related News (Wed, Apr 10)

NEW YORK (Reuters) - Stocks advanced on Tuesday, with the Dow closing at a record high on a rally in cyclical shares and as earnings season started to heat up. With the day's advance, the S&P 500 again neared its all-time intraday high of 1,576.09, recovering from steep losses last week, the index's worst of 2013. The return to near-record levels indicates that investors are again using market declines as buying opportunities. The top sectors of the day, technology and energy, are groups that are closely tied to the pace of economic growth.

An S&P index of energy shares (.SPNY) rose 0.8 percent, climbing alongside a rise of 0.9 percent in the price of U.S. crude oil, which was up on inflation data from China that reduced concerns about monetary tightening. The Dow Jones industrial average (.DJI) advanced 59.98 points, or 0.41 percent, to 14,673.46, a record closing high. The Standard & Poor's 500 Index (.SPX) gained 5.54 points, or 0.35 percent, to 1,568.61. The Nasdaq Composite Index (.IXIC) added 15.61 points, or 0.48 percent, to close at 3,237.86. The Dow also touched a record intraday high at 14,716.46. Stocks also got a boost from a promising start to the earnings season.

Share prices on Bursa Malaysia ended broadly firmer yesterday backed by last minute support for bluechips, dealers said. FKLI spot month contract opened at 1,684 this morning. 

Today’s Support and Resistance for April contract is located around 1,675 and 1,700 respectively. 

FCPO Related News ( Tues, Apr 9 )

Malaysian palm oil futures edged up to more than one-week

highs in thin trade on Monday as investors pinned their hopes on stockpiles having eased further in March, signalling stronger demand for the tropical oil, although the ringgit's recent rise capped gains.  By Monday's close, the benchmark June contract  on the Bursa Malaysia Derivatives Exchange had climbed 1.7 percent to 2,400 ringgit ($784) per tonne. Prices earlier in the day touched 2,402 ringgit, the highest since March 29. Total traded volumes were thin at 26,880 lots of 25 tonnes each, compared to the average 35,000 lots seen so far this year. The ringgit edged 0.1 percent lower against the dollar on Monday, giving up some gains after hitting its highest in more than 2 months on Friday due to short-covering ahead of upcoming elections.  

Analysts said lower stocks may provide support for prices. "We believe the overall data should be short-term positive to crude palm oil prices," Alan Lim Seong Chun, research analyst with Malaysia's Kenanga Investment Bank, said in a note to clients on Friday. The bank is revising its March inventory forecast slightly down to 2.26 million tonnes from 2.31 million tonnes earlier after revising its production and exports estimates, Lim said.  A Reuters poll forecast Malaysia's palm oil stocks in March to have edged lower to 2.35 million tonnes as production likely eased 1.2 percent from a month ago.

Stocks stood at 2.44 million tonnes at the end of February, down from a record 2.63 million tonnes at the end of December. "The market is kind of slow today prior to the MPOB data, but should be supportive because we're expecting stocks to reduce," said a trader with a foreign commodities brokerage in Malaysia. But a strong ringgit will make margins turn worse for refiners, the trader said. "Most likely refiners will opt to stay on the sidelines, because if they buy CPO the margins will be very negative," the trader said. Investors are also keeping an eye on cargo surveyor export data due on Wednesday that will reveal Malaysia's shipments of palm oil products for the first ten days of April. Higher demand for refined products in March had helped offset lower crude palm oil shipments caused by a 4.5 percent export duty implemented for the month. The duty was up from zero percent in February.

In other markets, Brent crude rose towards $105 per barrel on Monday as plans to stimulate Japan's economy lifted financial markets, but the oil benchmark remained near an eight-month low on worries over global economic growth and fuel demand. In vegetable oil markets, U.S. soyoil for May delivery rose 1.0 percent in late Asian trade. The most active September soybean oil contract on the Dalian Commodities Exchange climbed 0.7 percent.

A Reuters survey of five plantation companies showed Malaysia's palm oil stocks likely edged to a 7-month low in March at 2.35 million tonnes. Technical analysis indicated palm oil faces resistance at 2,400 ringgit per tonne, a break above which will lead to a further gain to 2,420 ringgit, said Reuters market analyst Wang Tao.

Today’s Support and Resistance for benchmark June contract is located around 2,396 and 2,426 respectively. 

FKLI Related News ( Tues, Apr 9 )

NEW YORK, April 8 (Reuters) - U.S. stocks ended a volatile session higher on Monday as investors looked ahead to an earnings season expected to show modest growth despite concerns about the economy's health. Wall Street fluctuated between positive and negative territory for much of the day before climbing in the final hour of trading, ending near its session highs. However, volume was light and the Dow's gains were limited by a selloff of Johnson & Johnson shares.

The season unofficially started after the market closed with results from Alcoa Inc. The aluminum company reported adjusted earnings that beat expectations, but revenue was down from the year-ago quarter. After initially rising in extended-hours trading, Alcoa's stock slid 1.1 percent to $8.30. As the first Dow component to report, Alcoa is informally viewed as setting the initial tone for the season, though many more bellwether companies' earnings won't come out until next week. The S&P materials index ended Monday's session up 0.4 percent.

The Dow Jones industrial average rose 48.23 points, or 0.33 percent, to 14,613.48 at the close. The Standard & Poor's 500 Index gained 9.79 points, or 0.63 percent, to 1,563.07. The Nasdaq Composite Index advanced 18.39 points, or 0.57 percent, to close at 3,222.25. Both the Dow and the S&P 500 finished Monday's trading at their session highs, while the Nasdaq was just below its intraday peak. During the session, the Dow made a swing of 115.68 points - falling 67.45 points to its intraday low before it rebounded to end the day up 48.23 points at its session high.         

Most Southeast Asian stocks ended weaker on Monday with Singapore and Indonesia falling to their two-week lows led by financials as weak U.S. job data and concerns over Europe dented investors' appetite for risky assets.          [Reuters]

Bursa Malaysia closed slightly lower yesterday on late profit-taking amid mixed performances on the regional bourses, dealers said. The KLCI fell 0.66 points to close at 1,687.99, after opening at 3.02 points higher at 1,691.67.           [Bernama]

FKLI spot month contract opened barely higher this morning at 1,684 following weak U.S job data. Today’s Support and Resistance for April contract is located around  1,670 and 1,690 respectively.

FCPO Related News (Mon, Apr 8)

Malaysian palm oil futures inched lower on Friday, tracking weak soy markets, and posted a second straight weekly loss, with investors cautious ahead of key industry data due this week. Soybean prices have eased this week after the U.S. Department of Agriculture reported larger-than-expected stockpiles and on worries that bird flu might spread in top importer China and reduce feed demand. Palm oil tends to track soybean and soybean oil prices closely as the edible oils are close substitutes.

By the market close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had eased 1.5 percent to 2,356 ringgit ($771) per tonne. For the week, prices suffered a 0.9 percent loss. Total traded volumes were thin at 20,144 lots of 25 tonnes each, compared to the average 35,000 lots seen so far this year.          [Reuters]

FKLI Related News (Mon, Apr 8)

U.S. stocks fell on Friday, with the S&P 500 index sustaining its worst weekly hit this year, after the government said the far fewer Americans found jobs in March than analysts had estimated. Hong Kong stocks on Friday suffered their worst drop in more than eight months as worries about the impact from a new strain of avian flu in China hurt sentiment, slamming airline shares in particular.

Stocks on Bursa Malaysia closed slightly higher last Friday on late bargain hunting after mild profit-taking in the morning session. Foreign funds buying has helped boost the local market as over the last five days, foreign investors have pumped in about RM2.5 billion into the market. FKLI spot month contract opened higher Monday morning at 1,688 and reached the day’s high of 1,691 before closing at 1,683.

FCPO Related News (Fri, Apr 5)

KUALA LUMPUR, April 4 (Reuters) - Malaysian palm oil futures inched lower on Thursday, tracking weakness in competing soy markets, with many investors preferring to stay on the sidelines ahead of key industry data due next week. Industry regulator Malaysian Palm Oil Board (MPOB) will release on Wednesday official figures of March's output levels and palm inventories, an important indicator that could help gauge the direction of the world's most traded edible oil. Cargo surveyor data out earlier this week showed better exports in March than February, marking the first monthly rise in four months, boosted by higher shipments of refined products.

On Thursday, however, investors focused on soybean's fall for a second straight session. Lower soybean prices could wean away demand from palm oil. "The external implications are bearish and that is going to put a lot of influence on the market even though the local front is supportive," said a trader with a foreign commodities brokerage in Kuala Lumpur. By market close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had edged down 0.2 percent to 2,392 ringgit ($777) per tonne. Prices on Monday fell to 2,335 ringgit, the lowest in nearly three months. Total traded volume stood at 23,044 lots of 25 tonnes each, thinner than the average 35,000 lots seen so far this year. "We're waiting for next week when the MPOB figures will be announced. I'm looking at a short term range of 2,350 to 2,400 ringgit," the Kuala Lumpur trader added. Technical analysis showed palm oil is expected to drop to its Monday low of 2,335 ringgit per tonne, as indicated by its wave pattern and a Fibonacci retracement analysis, said Reuters market analyst Wang Tao.  

Stockpiles in Malaysia, the world's No.2 producer of the tropical oil, currently stand at 2.44 million tonnes. Investors are pinning hopes that the higher exports in March would ease stocks to at least 2.35 million tonnes, despite expectations that production levels could have risen as well.  In other markets, Brent crude oil steadied at around $107 per barrel on Thursday after its biggest fall in five months on signs of faltering economic growth and rising stocks of fuel. In vegetable oil markets, U.S. soyoil for May delivery gained 0.2 percent in late Asian trade. The Dalian Commodities Exchange will be closed until Monday for a public holiday in China.

Today’s Support and Resistance for benchmark June contract is located around 2,335 and 2,390 respectively.