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Crude palm oil futures on Malaysia’s derivatives exchange ended higher Thursday, holding on to gains after data on China’s economy met expectations. Expectations for export demand to rise during the October-December quarter supported market sentiment as well, market participants said. The benchmark January contract at Bursa Malaysia Derivatives ended 1% higher at 2,496 ringgit a metric ton after moving in a MYR2,475-MYR2,508 range.

OSK   Research   says   that   buying   will   be   steady   today   and could drive prices toward MYR2,500-MYR2,525/ton  and  notes "  a  breach  past  these  levels  should  ease  any doubt of lingering price weakness. "The market now expects palm oil exporters, particularly those with refineries overseas, to export as much oil as possible before the duty-free CPO export quota is discontinued at the end of the year," a trading executive at Kuala Lumpur-based OSK Investment Bank said. Higher exports could help draw down stock levels that rose to an all-time high of 2.48 million tons in September due to seasonally higher production.

China’s third-quarter growth data, a key data point to assess the state of the region’s largest economy, came out at 7.4%, in line with a median forecast of 14 economist surveyed by Dow Jones Newswires. Open interest on the BMD was 151,863 lots versus 174,059 lots Wednesday. One lot is equivalent to 25 tons. A total of 34,274 lots of CPO were traded versus 44,600 lots Wednesday.     [Dow Jones Newswire]

Palm oil futures also rose on gains in the U.S. soy complex, traders said. Soybean futures extended gains in Asian trade on Thursday, driven by bargain hunting after prices slid this week to their lowest since late June. U.S. soybean futures edged higher on Friday, rising for a fourth straight session and on track for the first weekly gain in more than a month as strong demand and slow selling by farmers supported prices.  U.S. soybean prices rose on Thursday for a third straight day as farmers were slow to sell amid a waning harvest for the crop and cocoa rebounded on less grinding of the commodity that is used for confections and beverages.

Palm oil futures, which have lost 21 percent so far this year, also gained support from shortcovering by some investors ahead of the Muslim holiday of Eid al-Adha next week. "The market should continue to go higher," said a trader with a local commodities brokerage. "They are expecting some floods because there's going to be rainy days ahead." He added, "I'm expecting some short covering to take place either now or next week -- next week it will be Hari Raya Haji," referring to the Muslim holiday.

In a bullish signal for palm oil, crude oil held above $113 a barrel as Chinese economic data signalled stabilisation in the economy of the world's second-largest oil consumer while concern over supplies in the Middle East provided support.

Today’s Support and Resistance for benchmark January contract is located around 2,440 and 2525 respectively.

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NEW YORK (Reuters) - Stocks fell on Thursday, with technology stocks hit hard after Google's surprisingly weak earnings - released prematurely during the trading day - disappointed investors. Shares of Google lost 8 percent - the stock's worst day since January 20 - to close at $695 after the Internet giant's third-quarter results showed earnings and revenue fell short of forecasts.

After the midday snafu and the stock's slide, Google was the biggest drag on the S&P 500. Tech stocks suffered, with the S&P 500 information technology index (.GSPT) losing 1.53 percent. Shares of IBM (IBM.N), which disappointed investors a day earlier, lost 2.8 percent to close at $194.96 and pull the Dow lower.

The Dow Jones industrial average (^DJI) dipped 8.06 points, or 0.06 percent, to close at 13,548.94. The Standard & Poor's 500 Index (^GSPC) shed 3.57 points, or 0.24 percent, to 1,457.34. The Nasdaq Composite Index (.IXIC) fell 31.26 points, or 1.01 percent, to end at 3,072.87. The day's declines snapped the S&P 500's three-day string of gains, which had pushed the benchmark index up 2.3 percent through Wednesday's close. The Dow's loss was limited by Travelers and Verizon. Technology was by far the day's weakest sector, but seven of the S&P 500's 10 sectors ended the session higher.

Weak jobs data released on Thursday also weighed on the market. Weekly jobless claims rose to 388,000 - or 32,000 more than analysts expected. A Labor Department official said it appeared that state-level administrative issues were distorting the data. "On a longer-term basis and non-seasonally adjusted basis, the jobs numbers are in line with where they're been all year. And that's still indicative of very slowly improving employment," said Paul Nolte, managing director at Dearborn Partners in Chicago. "What happened to Google is a continuation in the tech sector of some very poor earnings numbers. But we're not seeing the same lack of performance across the board from other sectors," he also added.  

Oil prices fell on Thursday on the approaching restart of a North Sea oil field and weak U.S. jobless claims data, but with losses pared after news a pipeline carrying Canadian crude oil to the United States had shut. Global shares dipped on Thursday, weighed down by a late decline on Wall Street, though a European benchmark hit a 15-month closing high as tension surrounding the euro zone's debt crisis continued to ease.     [Reuters]

Malaysia's index futures spot month contract opened slightly  lower this morning  at 1666.5,  following Wall Street’s decline Thursday due to Google’s surprisingly weak earnings leaving a huge impact on the market, particularly tech stocks. However, the benchmark KLCI will likely continue to test the immediate Resistance threshold of 1670 after  revisiting  its record high of 1668.32, while Support is expected to remain above 1655 level.

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Crude palm oil futures on Malaysia’s derivatives exchange edged up Wednesday in rangebound trade as investors refrained from aggressive bets ahead of China’s third-quarter GDP data Oct. 18. The benchmark January contract at Bursa Malaysia Derivatives ended 0.2% higher at 2,471 ringgit a metric ton after moving in a MYR2,456-MYR2,489 range.

Wide price swings in palm oil aren’t expected for the rest of the week as traders assess Malaysia’s oil palm crop situation, a vegoil exporter in Pasir Gudang said. Market participants are also on the lookout for the next export demand data due Oct. 20 by cargo surveyor Intertek Agri Services to see whether "exports have moved out excess palm oil stocks [from Malaysia]," the exporter said. CIMB Research expects rising palm oil stocks to limit any upside for now, although it notes that the current low price may attract buying interest and help draw down stock levels that had climbed to a record 2.48 million tons at end-September due to seasonally higher yields.   [Dow Jones Newswire]

The market is digesting all the news and views spoken yesterday, is expected to remain rangebound until more is known about demand, according to a trader with a local commodities brokerage in Malaysia. Another trader with a foreign commodities brokerage in Malaysia said the upcoming U.S. presidential elections have made global investors more cautious.

On Tuesday, U.S. President Barack Obama and Republican rival Mitt Romney clashed repeatedly on jobs and energy. While market reaction in Asia has been muted, U.S. investors are likely to focus on the outcome as it gives an idea on the kind of economic and financial policies that may come into play after the polls. "The U.S markets are quiet because of the presidential election next month, so people are watching carefully. That's why the (palm oil) market can't move," the Malaysian trader said.

U.S. soyoil for December delivery inched up 0.4 percent in late Asian trade after earlier losses on expectations of higher soybean supplies in the Americas. The most active January 2013 soybean oil contract on the Dalian Commodity Exchange closed 0.1 percent higher.

Technical analysis showed that palm oil remained neutral, trapped in a range of 2,361-2,528 ringgit per tonne, said Reuters analyst Wang Tao.  Today’s Support and Resistance is located around 2,440 and 2,500.   [Reuters]

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U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for a third straight day, as a jump in housing starts overshadowed disappointing results from International Business Machines Corp. (IBM) and Intel Corp. The S&P 500 (SPX) rose 0.4 percent to 1,460.91 at 4 p.m. in New York. The index has gained 2.3 percent this week. The Dow Jones Industrial Average added 5.22 points, or less than 0.1 percent, to 13,557 today. IBM, which accounts for more than 11 percent of the share-price-weighted Dow, took 80 points off the gauge today. About 6.3 billion shares traded hands on U.S. exchanges, 5.1 percent above the three-month average.

“The housing number was amazing,” Randall Warren, who oversees $75 million as chief investment officer of Warren Financial Service in Exton, Pennsylvania, said in a phone interview. “Corporate earnings have been strong in a slow growth environment, so if housing can help improve the economy then we could see a move up in stocks.” U.S. equities rose as Commerce Department figures showed new-house construction jumped 15 percent to an 872,000 annual rate last month, the most since July 2008 and exceeding all forecasts in a Bloomberg survey of economists. The median estimate of 81 economists surveyed by Bloomberg called for 770,000.

An S&P gauge of 11 homebuilder stocks rose 3.2 percent. The S&P 500 has rallied 16 percent this year and is about 7 percent below its all-time high of 1,565.15 reached in October 2007. Of the 73 companies in the equity benchmark that have reported since Oct. 9, 54 have posted earnings that exceeded analyst estimates, data compiled by Bloomberg show.  

Utilities, financial and energy shares had the biggest gains among 10 groups in the S&P 500, climbing at least 1.1 percent. Technology shares had the largest decline, tumbling 0.8 percent as a group. Intel, the world’s largest semiconductor maker, dropped 2.5 percent to $21.79. IBM dropped 4.9 percent, the most since October 2009, to $200.63 after the world’s biggest computer-services provider reported revenue that dropped 5.4 percent to $24.7 billion. Facebook Inc. (FB) climbed 2.1 percent to $19.88 after a research report said the social network owner is showing signs of success in a push to make money from mobile users.     [Bloomberg]

Asian stock markets were higher on Wednesday after Moody's reaffirmed its rating on Spanish debt, helping Australian and Hong Kong shares hit multi-month highs. Regional market sentiment improved after Moody's Investors Service affirmed Spain's government bond rating - keeping the country's government debt rating at Baa3, one notch above junk territory, with a negative outlook. Brent crude oil fell on Wednesday as lingering worry about the global economy overshadowed relief that Spain avoided a ratings downgrade and optimism prompted by firm U.S. corporate results.

Malaysia's index futures spot month contract closed higher yesterday  at 1665.5, in line with gains in Asian stock markets after Moody's reaffirmed its rating on Spanish debt. The benchmark KLCI  index will likely remain above the key 1655 level though analysts caution that profit-taking activity may set in at these lofty levels; strong resistance is tipped at the index's 1668 all-time high. Immediate Support is located around 1,658, while  further upside confirmation will appear if the index futures manage to breach above previous high or higher high around 1,671 level.

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Crude palm oil futures on Malaysia’s derivatives exchange ended little changed after moving both ways Tuesday, as investors digested vegoil price forecasts by prominent analysts. The benchmark January contract at Bursa Malaysia Derivatives ended MYR4 lower at 2,466 ringgits a metric ton after moving in a MYR2,443-MYR2,521 range. Palm oil has declined more than 20% since the beginning of the year and could fall further in the next few weeks due to rising palm oil supplies in Southeast Asia and favorable progress of the U.S. soybean crop.

Leading analyst Dorab Mistry said palm oil prices could fall to a three-year low of MYR2,200/ton in the next four to six weeks as import demand from major consumer China has slowed. Also, palm oil stockpiles in the world’s top CPO producer after Indonesia may exceed 3 million tons by Jan. 1, he said during an industry conference in Kuala Lumpur. For the year ahead, production of competing oilseeds, including sunflower oil, may remain weak and potentially steering buyers to palm oil to meet requirements. "Prospective decline in supplies of competing vegetable oils could help palm oil to recover toward MYR3,300/ton by March," Hamburg-based oilseed analyst Thomas Mielke said at the conference.

Palm oil's falling premium over petroleum prices could increase its appeal for use as biodiesel, leading vegoil analyst James Fry said Tuesday. Palm oil's premium over petroleum prices has fallen since July due to rising inventories of the tropical oil, which is used to make a wide variety of consumer products, he said. "When vegetable oil prices approach that of crude oil, the production of biodiesel and the direct burning of vegetable oils become [more economically] attractive," Mr. Fry, who's also chairman of agri-consultancy LMC International, told an industry briefing in the Malaysian capital. He didn't give a forecast on prices, but he predicted at a recent conference in Mumbai that palm oil prices on Malaysia's derivatives exchange would average 2,285 ringgit a ton in the October-December quarter.

[Dow Jones Newswire]

Malaysia may continue issuing a tax free crude palm oil quota to some firms next year, a senior industry source told Reuters on Monday. The source, who has direct knowledge of government policy making, said some plantation companies had asked the commodities ministry to make an exception so that firms with refineries overseas can maintain profit margins. Analysts say the government is likely to keep the export quota for planters that have refineries overseas and remove those licence holders who did not make use of their facility to prevent leakages in the system. "Potentially the government could keep the export quota for those who have refineries overseas. I think the government announced their plans early so they could gauge the reaction," said Ben Santoso, a plantations analyst with DBS Bank in Singapore.

[Reuters]

Today’s Support and Resistance for benchmark January contract is located around 2,450 and 2,500 respectively.

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NEW YORK, Oct 16 (Reuters) - U.S. stocks rose on Tuesday, giving the S&P 500 its best two-day advance in a month as strong earnings from Johnson & Johnson, Goldman Sachs and other bellwether companies raised hopes for the rest of the U.S. reporting season.

Overall S&P 500 companies' quarterly earnings still are expected to decline 2.3 percent from a year ago, but the forecast does mark a slight improvement from estimates last week, according to Thomson Reuters data. The Dow Jones industrial average jumped 127.55 points, or 0.95 percent, to 13,551.78 at the close. The Standard & Poor's 500 Index advanced 14.79 points, or 1.03 percent, to finish at 1,454.92. The Nasdaq Composite Index rose 36.99 points, or 1.21 percent, to close at 3,101.17. The S&P 500 has gained 1.8 percent in the last two days, rebounding from last week's slide of 2.2 percent. That was the benchmark index's worst week in four months.

Economic data showed the overall U.S. Consumer Price Index rose 0.6 percent in September as the cost of gasoline surged, posing a threat to consumers' spending power. On the other hand, inflation pressures looked unlikely to derail the Federal Reserve's ultra-easy policy path. Excluding volatile food and energy prices, core CPI was up 0.1 percent - less than the forecast for a gain of 0.2 percent.

Malaysia’s index futures spot month contract opened higher this morning tracking gains on Wall Street Tuesday following better-than-forecast earnings and upbeat housing sector data. Today’s  Support and Resistance  is located around 1,645 and 1,665 respectively.

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Crude palm oil futures on Malaysia’s derivatives exchange ended lower Monday as traders refrained from making aggressive bets ahead of vegoil price outlooks by leading analysts. The benchmark December contract at Bursa Malaysia Derivatives ended 2.7% lower at 2,433 ringgit a metric ton after moving in a MYR2,417-MYR2,475 range. Investors also liquidated riskier positions amid lower Chicago soyoil futures during Asian hours and the possibility of large new soybean crops in Argentina and Brazil.

"The new export duty announced by the Malaysian government is a better option than the tax range of 8%-10% mentioned previously," a commodities trader in Kuala Lumpur said. However, I’m not going to take a big risk and I’ve liquidated most of my positions, given the still ample palm oil supplies and price outlooks Tuesday," the trader said. Leading vegetable oils analyst Dorab Mistry, Hamburg-based oilseed analyst Thomas Mielke and London-based James Fry, chairman of agri-consultancy LMC International, are scheduled to present their price outlooks at an industry seminar in Kuala Lumpur Tuesday.

Malaysia, the world’s biggest palm oil producer after Indonesia, said late last week that it will abolish a duty-free CPO export quota from 2013 and introduce a graduated export tax system to ensure sufficient domestic CPO supplies over the long term and lower feedstock costs, helping Malaysian downstream palm oil processors grab back market share from Indonesia. "We are of the opinion that the sliding scale for the export duty makes sense, as it will encourage more CPO exports if prices are low, thus helping to keep the ballooning inventory in check," OSK Investment Bank said in a note.

[Dow Jones Newswire]

Malaysia  may continue issuing a tax free crude palm oil quota to some firms next year, a senior industry source told Reuters on Monday, as planters resist the government plan to abolish the export facility in the world's No.2 producer of the edible oil. The market expects top industry analysts Dorab Mistry, Thomas Mielke and James Fry to address the impact of the tax change at a seminar in Malaysia on Tuesday.

Latest cargo surveyor data pointing to stronger demand could help ease palm oil stocks in Malaysia, which hit a record 2.48 million tonnes in September. Exports of Malaysian palm oil products for Oct. 1-15 rose 13.1 percent to 769,534 tonnes from 680,112 tonnes for the Sept. 1-15 period, Intertek Testing Services said on Monday. Another cargo surveyor, Societe Generale de Surveillance, reported a higher increase of 16.3 percent on the month, to 768,550 tonnes.

Technicals showed palm oil would fall to 2,361 ringgit per tonne, as a rebound from 2,230 ringgit has finished around resistance at 2,528 ringgit, said Reuters analyst Wang Tao. In a bearish sign for palm oil, Brent futures slipped towards $114 a barrel on Monday, falling for a second session due to worries over weak oil demand, although concerns over potential supply risks from tension in the Middle East kept losses in check.

[Reuters]

India, the world's top vegetable oil importer, will buy more crude palm oil from Malaysia next year after the world's no. 2 producer said it will scrap an existing quota on duty-free exports and reduce export taxes on CPO from January, B.V. Mehta, executive director at the Solvent Extractors' Association of India, said Monday. "It has always been the Indian government's policy to import more CPO. The new export tax structure [announced by Malaysia] makes it cheaper for India to buy CPO from Malaysia, instead of Indonesia," Mr. Mehta said on the sidelines of an industry briefing. India is expected to buy 7.5 million metric tons of palm oil this year, with CPO cargoes accounting for some 6.5 million tons, he added.
Malaysia Friday said it would reduce the export tax on CPO from 23% to a graduated basis from Jan. 1, which will reduce the gap between the taxes on CPO and refined oil, which hasn't been taxed for the past three decades as Southeast Asia's third-largest economy built up its domestic palm oil processing industry.