FCPO Related News (Thurs, Mar 14)
SINGAPORE, March 13 (Reuters) - Malaysian palm oil futures slipped to a two-month low on Wednesday as weakness persisted in overseas soybean markets, although traders said easing palm oil output should provide some support. U.S. soybean prices have been pressured by weak export demand, which also weighed on soybean oil, with China's soybean oil losing more than 3 percent so far this week.

   

Palm oil tends to track soybean oil prices closely as the commodities are used as substitutes for one another. But traders said a decline in production in February that may continue this month could provide some support for palm oil prices. "Liquidation persists in futures, although some traders think it is funds-related," said a trader with a commodities brokerage in Malaysia. "The well-advertised supply constraints should keep fundamentals intact."

By Wednesday's close, the benchmark May contract on the Bursa Malaysia Derivatives Exchange had dropped 0.6 percent to 2,397 ringgit ($773) per tonne, slightly above its intraday low of 2,365 ringgit, a level unseen since January 14. Total traded volume stood at 31,784 lots of 25 tonnes each, higher than the usual 25,000 lots. Technicals showed Malaysian palm oil is expected to fall to 2,384 ringgit per tonne, said Reuters market analyst Wang Tao based on a wave analysis.

   

But despite short-term weakness, market participants said palm oil fundamentals remained intact, on hopes that stocks will continue to ease on lower production and a demand recovery. Malaysian palm oil stocks fell to 2.44 million tonnes in February from 2.58 million in January, thanks largely to a near 20 percent drop in production. Export demand for the March 1-10 period was flat with a month ago, with traders now shifting their focus to the March 1-15 data due on Friday for a better indication of the demand trend. Crude palm oil shipments fell by more than half after Malaysia raised its export tax for the grade to 4.5 percent from zero percent. Top rival Indonesia increased its tariff to 10.5 percent from 9 percent for the month.

    

In other markets, Brent futures eased on Wednesday as Asian equities lost ground on concerns their recent rally was running out of steam, but expectations of steady global consumption growth and a surprise fall in U.S. stockpiles held the benchmark above $109 a barrel. In other vegetable oil markets, U.S. soyoil for May delivery  edged down 0.4 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange lost 1.8 percent.

Today’s Support and Resistance for benchmark May contract is located around 2,360 and 2,417 respectively.

FKLI Related News

(Reuters) - Stocks edged up on Wednesday, with the Dow rising for the ninth straight session to another record, buoyed by surprisingly strong retail sales that suggested the economy is gaining momentum. The Dow Jones industrial average's nine-day winning streak is the longest consecutive run since November 1996. But trading volume was light. Moves have been muted in recent days as investors consolidate positions after a strong run-up in the first three months of the year. Still, weakness in stocks has been met with buying, which helped propel the market's advance.

The broader S&P 500 is within striking distance of its all-time closing high of 1,565.15 and about 1 percent away from all-time intraday high of 1,576.09 - both set in 2007. International Business Machine (IBM.N) and Boeing Co (BA.N) were the Dow's top two gainers. IBM shot up 0.7 percent to $212.06. Boeing also jumped 0.7 percent - to $84.75 at the close. The Dow Jones industrial average .DJI gained 5.22 points, or 0.04 percent, to 14,455.28, another record closing high. The Standard & Poor's 500 Index .SPX advanced 2.04 points, or 0.13 percent, to 1,554.52. The Nasdaq Composite Index .IXIC gained 2.80 points, or 0.09 percent, to end at 3,245.12.

Signs of strength in the economy and the Federal Reserve's easy monetary policy have helped U.S. equities accelerate their advance. The blue-chip Dow is up 10.3 percent for the year and the benchmark S&P 500 index has gained 9 percent. Wednesday's retail sales report reinforced the view that the U.S. economy has momentum, even with the obstacles the recovery is facing. Sales increased 1.1 percent in February, the largest increase since September. Investors had been looking for signs of any impact on spending from stubbornly high unemployment and a higher payroll tax that went into effect at the start of the year. The Morgan Stanley retail index .MVR gained 0.7 percent.          [Reuters]

The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts on Bursa Malaysia Derivatives were traded  mostly lower in the early session today on the weaker performance of the local bourse, dealers said.

FKLI spot month opened slightly higher this morning at 1643.  Today’s Support and Resistance  for March contract is located around  1,620 and 1,650 respectively.

FCPO Related News (Wed, Mar 13)

Malaysian palm oil futures edged lower on Tuesday, tracking weaker overseas soybean oil markets, although a fall in palm oil stockpiles helped keep losses in check.           [Reuters]

The benchmark May contract at Bursa Malaysia Derivatives ended 39 ringgit lower at MYR2,411 a metric ton after moving in a MYR2,413-MYR2,442 range. CBOT May soyoil is down 0.9% at 50.01 U.S. cents a pound in screen trade after data from the U.S. Department of Agriculture showed reduced demand for soybeans. Soybeans are usually crushed and processed into soymeal and soyoil–a direct substitute for palm oil. "Palm oil is down but easing stockpiles in the coming months will help to underpin prices," a trading executive at a foreign commodities brokerage.

CPO production is "expected to continue to decline as we come off the peak season," RHB Investment Bank analyst Hoe Lee Leng said in a report. Palm-oil production in Southeast Asia usually dips in November to March before rising from July. Inventory levels at the world’s No. 2 producer will ease to 2.23 million tons by June on the back of recovering export demand as winter season in the Northern Hemisphere ends, Ms. Hoe said. The oil tends to solidify and turn cloudy in cold weather reducing its appeal as a cooking oil. Vessels and loading at main ports in Malaysia is modest, a Penang-based shipping executive said indicating steady exports this month.

Over Malaysian Borneo some palm-oil exporters have diverted 

their cargo loading activities to Lahad Datu port following armed clashes with Filipino rebels in Sabah state leading to a larger vessel line up at the port. Sabah is Malaysia’s biggest oil-palm growing region. The state’s crude palm oil production last year accounted for 30% of the country’s total production, according to industry regulator the Malaysian Palm Oil Board.

In the cash market refined palm olein for March was offered at $815/ton while cash CPO for prompt shipment was offered at MYR2,370/ton. Open interest on the BMD was 164,794 lots, versus 166,475 lots Monday. One lot is equivalent to 25 tons. A total of 39,868 lots of CPO were traded versus 31,687 lots Monday.           [Dow Jones Newswire]

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

FKLI Related News ( Wed, Mar 13)

NEW YORK (Reuters) - The S&P 500 ended lower on Tuesday, breaking a seven-session string of gains as investors pulled back from technology and financials, but the Dow eked out the smallest of gains to finish at another all-time closing high. The Dow also hit another lifetime intraday high, while the S&P 500 remains within reach of its all-time closing high of 1,565.15, set on October 9, 2007. Signs of improvement in the economy and the Federal Reserve's quantitative easing have helped to propel the advance.

Tech shares, which have lagged the rally, pulled indexes lower as heavyweights such as Apple (AAPL.O) and Google (GOOG.O) tumbled. Financials also underperformed the broader market on Tuesday, with the S&P 500 financial index (.SPSY) down 0.6 percent. The Dow Jones industrial average (.DJI) rose just 2.77 points, or 0.02 percent, to 14,450.06, another record close. Earlier, the Dow climbed to a lifetime intraday high of 14,478.80. The Standard & Poor's 500 Index (.SPX) dipped 3.74 points, or 0.24 percent, to finish at 1,552.48 - about 13 points below its record closing high. The Nasdaq Composite Index (.IXIC) slipped 10.55 points, or 0.32 percent, to close at 3,242.32.

Apple dropped 2.2 percent to $428.43. An analyst said the company has a 25 percent chance of missing its quarterly revenue forecast as iPhone sales slow. Google fell 0.9 percent to $827.61, while the S&P tech sector (.SPLRCT) lost 0.6 percent. After a light economic calendar the last couple of days, investors will turn their attention to retail sales data on Wednesday to get a sense of how consumers are faring. Sales are expected to have increased 0.5 percent in February. Adding to Tuesday's weakness, Jens Weidmann, head of the Bundesbank and a member of the European Central Bank's governing council, said the euro-zone crisis was not over.

Brent crude prices fell a third straight session in choppy trading on Tuesday, while U.S. oil posted a fourth consecutive gain, tightening the spread between the two contracts to the narrowest since January. The iconic Dow eked out another all-time record high on Tuesday but global equity markets slid, while the yen rose from a 3-1/2-year low against the U.S. dollar for the first time in a week. Gold had its biggest gain in two weeks on Tuesday after a top European Central Bank official said the euro zone crisis was not over, and copper and other base metals rallied too, sending commodities higher for a third day in a row.                      [Reuters]

Malaysian shares end down 0.1% at 1656.54, with investors taking profits in select blue chips amid decline in regional equities. A local dealer says supportive technical signals and encouraging signs for Malaysia’s economy following strong export and import growth point to further upside in the KLCI in the near term. “Today’s dip is just a temporary correction”, the dealer says, tipping resistance at 1675 and support at 1645.”          [Dow Jones Newswire]

FKLI spot month contract opened slightly lower this morning at 1,651 amid weaker performances on most regional stocks over concern on the global economic outlook. Today’ Support and Resistance for March contract is located around 1,645 and 1,670 respectively.

FCPO Related News (Tues, Mar 12)

KUALA LUMPUR, Malaysia–Crude palm-oil futures on Malaysia’s derivatives exchange ended little changed on Monday after trading both ways as investors digested crop data from industry regulators. The benchmark May contract at Bursa Malaysia Derivatives ended 2 ringgit higher at 2,450 ringgit a metric ton after moving in a MYR2,433-MYR2,461 range.

The U.S. Department of Agriculture in a report this past Friday raised its stockpile estimate for soybeans which could also lift supplies of soyoil. "News of higher soyoil inventory should be slightly negative for CPO as both commodities are commonly used as substitutes," Kenanga Investment Bank plantation analyst Alan Lim Seong Chun said in a report. However, Mr. Lim sees limited downside in palm oil because of easing stockpiles in Malaysia. 

Industry regulator the Malaysian Palm Oil Board said end-February inventories fell 5.2% from the previous month to 2.44 million tons–the lowest in six months as output continues to dip on seasonal factors. February output fell 19% from the previous month to 1.30 million tons, according to MPOB.

Some market participants caution that activity will stay choppy this week on anemic export demand and mixed technicals cues. "Generally investors prefer to sit on sidelines in the near term and wait for prices to break out convincingly from current ranges," Kuala Lumpur-based LT International head trader Chandran Sinnasamy said. Cargo surveyor Intertek Agri Services said palm-oil export demand from Malaysia–the world’s No. 2 producer–was little changed during the March 1-10 period at 441,025 tons. SGS (Malaysia) Bhd., another surveyor, said shipments rose 2.2% only from the previous month to 438,549 tons during the period.

In the cash market refined palm olein for March was offered at $825/ton while cash CPO for prompt shipment was offered at MYR2,440/ton. Open interest on the BMD was 166,475 lots versus 167,859 lots Friday. One lot is equivalent to 25 tons. A total of 31,687 lots of CPO were traded versus 29,454 lots Friday.

Today’s Support and Resistance for benchmark May contract is located around 2,420 and 2,470 respectively.

FKLI Related News ( Tues, Mar 12)

NEW YORK (Reuters) - Wall Street rose modestly on Monday, lifting the Dow to another record and giving the S&P 500 its seventh straight advance as early weakness enticed buyers. The gains briefly lifted the benchmark S&P 500 index to its highest intraday level since October 2007. With the slight advance, U.S. stocks continued last week's rally with the Dow Jones industrial average (.DJI) ending at a record closing high, up 50.22 points, or 0.35 percent, at 14,447.29. The Standard & Poor's 500 Index (.SPX) rose 5.04 points, or 0.32 percent, to 1,556.22, just below its record closing high of 1,565.15 reached on October 9, 2007.

Meanwhile, Wall Street's "fear gauge" closed at its lowest level since February 2007, suggesting investors were not spooked by Monday's brief pullback, despite expectations by many investors that a correction may be looming. The CBOE Volatility Index (.VIX), known as the VIX, dropped 8.2 percent to 11.56. U.S. equities have rallied since the start of the year, helped by signs of improvement in the economy and the support of equities by the Federal Reserve's quantitative easing program. These factors have contained recent pullbacks as investors have used them as a buying opportunity.

But volume was light, with about 5.39 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, below the daily average of 6.47 billion, suggesting the rally may be losing steam. Wall Street had traded slightly lower earlier in the day as Italy's credit downgrade and disappointing Chinese economic data gave investors a reason to pause. Earlier in the session, the Dow reached another lifetime intraday high, rising as high as 14,448.06.

Boeing Co (BA.N) rose to $83.03, its highest level since May 2008, after the U.S. aircraft manufacturer said strong demand was prompting it to increase its production rates of commercial planes. The stock, which rose 2 percent to $82.94 at the close, was the Dow's biggest percentage gainer. Boeing also gave the biggest boost to the Dow in Monday's session. 

The U.S.-listed shares of BlackBerry (BBRY.O) (BB.TO) surged 14.1 percent to $14.90 after AT&T (T.N) said it will start selling the company's new BlackBerry Z10 touchscreen smartphone in the United States on March 22. Dell Inc (DELL.O) has agreed to give Carl Icahn a closer look at its books less than a week after the activist investor joined a growing chorus of opposition to founder Michael Dell's plan to take the world's No. 3 personal computer maker private. Dell shares gained 1.5 percent to $14.37, above the take-private offer price of $13.65.

Brent crude oil prices fell on Monday, pressured by disappointing economic data from world No. 2 oil consumer China, while technical support and a dollar pullback limited losses and helped U.S. crude settle slightly higher. A number of commodities were higher for a second straight session on Monday on hopes that a recovering U.S. economy will lead to better demand, while coffee, sugar and corn rallied on worries about harsh weather and supply tightness.

Stocks on Bursa Malaysia rebounded in the afternoon session to close higher yesterday lifted by gains mostly in banking stocks. FKLI spot month opened higher this morning at 1666.50 as the Dow Jones rose to another record high. Today’s Support and Resistance for March contract is located around 1,650 and 1,670 respectively.

FCPO Related News (Mon, Mar 11)

[Malaysia Mar 1-10 Palm Oil Exports 441,025 Tons – ITS]

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Friday on technicals-driven buying interest, although values are trading within narrow ranges ahead of a slew of crop data due over the next few days. Palm oil stockpiles in Malaysia, the world’s no. 2 producer, probably easing to their lowest levels in six months helped underpin prices, market participants said. The benchmark May contract at Bursa Malaysia Derivatives ended 0.6% higher at 2,448 ringgit a metric ton after moving in a MYR2,426-MYR2,451/ton range.

Traders are looking out for a U.S. Department of Agriculture report due later in the global day on its soybean crop outlook and industry regulator Malaysian Palm Oil Board’s February crop data on March 11. Palm oil Inventories likely eased 4.7% to 2.46 million tons on the back of an estimated 13% dip in February output to 1.40 million tons, planters and analysts said. "Market chatter about a possible double-digit drop in March CPO production also fed into the positive sentiment today," a trading executive at a foreign trading house said, tipping prices to trade in a MYR2,400-MYR2,480/ton band next week.

Palm oil production in Southeast Asia usually dips in November to March before rising from July. In the cash market, refined palm olein for March shipment was offered at $825/ton, while cash CPO for prompt shipment was offered at MYR2,420/ton. Open interest on the BMD was 167,859 lots versus 167,050 lots Thursday. One lot is equivalent to 25 tons. A total of 29,454 lots of CPO were traded versus 28,800 lots Thursday.           [Dow Jones Newswire]

Today’s Support and Resistance for benchmark May contract is located around 2,430 and 2,480 respectively.