FCPO Related News (Fri, May 31)

[Malaysia May Palm Oil Exports 1.26 Million Tons,  Down 3.3% on Month –ITS]

[Malaysia May 1-25 Palm Oil Exports 1.061 Million Tons,  Down 2.1% on Month –SGS]

[Malaysia May 1-25 Palm Oil Exports 1.064 Million Tons, Down 5.2% on Month – ITS]

Crude palm oil futures on Malaysia’s derivatives exchange end down on profit-taking and concerns about a weak growth outlook for China. "Market chatter put overall May exports at 1.26 million tons, a decline of around 2%-3%," which is not as steep as the first 20 days and has helped underpin the market, a trading executive in Kuala Lumpur says. Buyers usually boost purchases of palm oil–used to make a wide variety of consumer products ranging from cooking oil to margarine–ahead of the Muslim fasting month of Ramadan, which starts in July this year, as food consumption tends to rise thanks to communal feasts after dawn-to-dusk fasting.

Brokers tip palm oil to trade around near-term support-resistance levels of MYR2,370/ton and MYR2,430/ton Friday. Cargo surveyors Intertek and SGS will also issue May export data Friday. Benchmark August CPO ends down 1.1% at MYR2,372/ton; CBOT July soyoil is down 1.1% at 48.52 cents/lb in screen trade.    

[Dow Jones Newswire]

KUALA LUMPUR, May 30 (Reuters) - Malaysian palm oil futures edged down on Thursday, slipping from a two-month high hit the day before as weaker overseas markets and slower demand for commodities weighed on the tropical oil, and as investors booked profits. Soy markets in the United States, tracked by palm, extended losses from the previous day following news that China, the world's largest buyer of soybeans, had cancelled a 147,000 tonne order for U.S. soy.

The benchmark August contract on the Bursa Malaysia Derivatives Exchange ended 1.1 percent lower at 2,372 per tonne. Prices traded in a tight 2,371-2,396 ringgit range, while total traded volumes stood at 22,280 lots of 25 tonnes each, just below an average 25,000 lots. "The market has been going up for so many days -- today it's the first day down, following weaker overseas markets," said a trader with a foreign commodities brokerage. "The market is also down due to a technical correction and profit taking," he added. Palm prices touched 2,420 ringgit on Wednesday, their highest since March 28, as investors anticipated tight supplies and a demand pick-up ahead of a Muslim festival, which would help trim stocks in No.2 producer Malaysia.

Technicals showed palm oil is expected to end the current correction above a support at 2,362 ringgit per tonne and then rise towards Wednesday's 2,420 ringgit high, Reuters market analyst Wang Tao said. Investors hope the Ramadan fasting month in July, when communal feasting usually boosts consumption, will nudge up demand of the edible oil that is widely used in food items ranging from chocolate to cookies. Market players will study export data for May, which will be released by cargo surveyors on Friday, to gauge demand. Exports of palm oil products have been sluggish this month due partly to weak demand from China. "Exports could be down between 2-3 percent for May," the Kuala Lumpur-based trader said. "Toward the Ramadan month, normally India, Pakistan and the Middle East buys more. But this time they are not."

In other markets, oil prices eased towards $102 a barrel on Thursday and were on track for a third straight month of losses amid a tepid global demand outlook and abundant supplies in the United States. In vegetable oil markets, U.S. soyoil for July delivery slipped 0.3 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange ended down 1 percent.          [Reuters] 

Today's Support and Resistance for benchmark FCPO August contract is located around 2,366 and 2,395 respectively.

To

FKLI Related News (Fri, May 31)

NEW YORK (Reuters) - Stocks rose on Thursday, rebounding from the previous session's losses, as tepid economic data eased concerns the Federal Reserve would begin to gradually scale back its policy of stimulating growth. Shares tumbled on Wednesday on concern the Fed would curb its bond-buying because of signs the economy was strengthening. U.S. Treasury bond yields rose to the highest in 13 months the same day, also influenced by concern about possible Fed tapering. "It won't be until around September before we really hear about possible changes in Fed (policy), but the market is volatile because at these levels, profit-taking is part of a hedging method to protect against possible downsides," said Randy Frederick, director of trading and derivatives at Charles Schwab in Austin, Texas. "After the profit-taking, the market moves right back up because it's a great buying opportunity, like today."

The Dow Jones industrial average (.DJI) was up 21.73 points, or 0.14 percent, at 15,324.53. The Standard & Poor's 500 Index (.SPX) was up 6.05 points, or 0.37 percent, at 1,654.41. The Nasdaq Composite Index (.IXIC) was up 23.78 points, or 0.69 percent, at 3,491.30. Data showed first-time claims for unemployment benefits unexpectedly rose in the latest week while the government's latest reading on first-quarter gross domestic product came in slightly below forecasts. Loose monetary policies by central banks around the world have helped drive both the Dow and the S&P 500 to record highs. The S&P 500 is up more than 16 percent this year so far.

Pending home sales rose 0.3 percent in April to the highest since April 2010, but analysts had expected a 1.1 percent rise. Volume was roughly 6.5 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, slightly above the average daily closing volume of about 6.4 billion this year. Advancers outpaced decliners on the NYSE 1,756 to 1,208. On the Nasdaq, advancers beat decliners 1,728 to 772.          [Reuters]

Share prices on Bursa Malaysia ended lower across the board yesterday, amid weak buying momentum, with sentiment dampened by the downtrend in  regional markets and Wall Street, dealers said. At 5pm, the FBM KLCI was 8.55 points or 0.5 percent lower at 1,774.92 after trading between 1,772.69 and 1,781.17 throughout the day. “The market is undergoing a ‘healthy correction’ at the moment after recent gains,” said TA Securities Senior Technical Analyst Stephen Soo. The negative flow of global news affected local and regional equity markets, he said. “The market is changing from the bulls to the bears,” Hwang DBS Vickers Research said.          [Bernama]            

FKLI spot month contract opened slightly higher this morning at 1,775 points. Todays’ Support and Resistance for FKLI May contract is located around 1,668 and 1,680 respectively.

FCPO Related News (Fri, May 24)

[Malaysia May 1-20 Palm oil Exports 807,232 Tons, down 6.6% on Month – SGS ]

[Malaysia May 1-20 Palm oil Exports 799,405 Tons, down 9.4 % on Month – Intertek]

[Malaysia May 1-15 Palm oil Exports 611,277 Tons, down 3% on Month – SGS]

[Malaysia May 1-15 Palm oil Exports 599,300 Tons, down 7.6% on Month – Intertek]

SINGAPORE, May 23 (Reuters) - Malaysian palm oil futures rose on Thursday to their highest in more than a month, stretching gains to a third straight week as investors hoped for a recovery in demand ahead of the Muslim fasting month of Ramadan. Higher export demand as buyers restock ahead of the event in

July and easing production could trim stocks further in the world's second largest producer, whose inventory fell to 1.93 million tonnes by the end of April.

But bullish sentiment was contained ahead of the long weekend and as traders look out for further exports data due next week. The Malaysian financial markets will be closed on Friday for a public holiday. "Although production looks likely to be lower, stocks level at the end of the month will really depend on how exports perform for the last ten days. Resistance is at 2,400 ringgit," said a trader with a domestic commodities brokerage in Kuala Lumpur.  

The benchmark August contract on the Bursa Malaysia Derivatives Exchange gained 0.5 percent to close at 2,370 ($782)ringgit per tonne, slightly off its high at 2,375 ringgit, a level last seen on April 11. Total traded volumes were 32,836 lots of 25 tonnes each, slightly lower than the usual 35,000 lots. Technical analysis is bullish as it showed a target at 2,388 ringgit per tonne had been confirmed for palm oil, as it has pierced above a resistance at 2,362 ringgit, Reuters market analyst Wang Tao said.

   

For the week, prices posted a gain of 1.5 percent, despite weaker exports data for the first 20 days of May, as investors look to restocking demand to support prices. In other markets, oil fell below $102 a barrel on Thursday in a broader commodities selloff as a decline in China's factory activity entrenched concern about weak demand and on worries about an early scale-back in Federal Reserve stimulus. In vegetable oil markets, U.S. soyoil for July delivery fell 0.4 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange fell 0.8 percent.   

Next week’s Support and Resistance for benchmark FCPO August contract is located around 2,320 and 2,420 respectively.

FKLI Related News (Fri, Mar 24)

NEW YORK, May 23 (Reuters) - U.S. stocks dropped on Thursday, with the S&P 500 on pace for its first back-to-back daily drop in a month amid investor concerns the U.S. Federal Reserve's stimulus may be scaled back sooner than hoped and after weak data in China. The S&P 500 had posted its biggest decline in three weeks on Wednesday after minutes from the latest U.S. Federal Reserve meeting showed some officials were open to tapering large-scale asset purchases as early as at the June meeting.

The minutes came in the wake of comments earlier in the session by Fed Chairman Ben Bernanke, who said the Fed could scale back the pace of its bond purchases at one of the "next few meetings" if the economic recovery looked set to maintain forward momentum. Adding to selling pressure, China's flash HSBC Purchasing Managers' Index for May fell to 49.6, slipping under the 50-point level which indicates expansion for the first time since October. That raised concerns the recovery in the world's second-largest economy has stalled and a sharper downturn may be on the horizon. 

Separately, data in Europe showed that while the downturn across euro zone businesses eased slightly in May, the bloc's economy is likely to contract again in the second quarter. In a bright spot, the number of Americans filing new claims for unemployment benefits dropped 23,000 to a seasonally adjusted 340,000, slightly better than expectations for a decline to 345,000, a report showed. But U.S. manufacturing slowed for a second straight month in May, as the Markit Purchasing Managers Index fell to a seven-month low of 51.9 in May from 52.1 the previous month.

The benchmark S&P index has jumped 15 percent since the start of the year, boosted by slowly improving U.S. economic data and stimulus measures by central banks around the globe. The Dow Jones industrial average lost 84.71 points, or 0.55 percent, to 15,222.46. The Standard & Poor's 500 Index dropped 12.64 points, or 0.76 percent, to 1,642.71. The Nasdaq Composite Index fell 20.71 points, or 0.60 percent, to 3,442.59. Selling was broad, with each of the 10 major S&P sectors in negative territory. Decliners on the New York Stock Exchange outpaced advancers by more than five to one, while the ratio on the Nasdaq was three to one.

Housing data showed sales increased to a seasonally adjusted annual rate of 454,000 units in April, above expectations of a 425,000-unit rate, and prices climbed to record high levels in a sign the housing market recovery remains on track. Still, the PHLX housing sector index shed 0.2 percent. Hewlett-Packard Co jumped 11.6 percent to $23.70 as one of only two Dow components in positive territory after the computer maker raised its 2013 earnings outlook after quarterly results beat low expectations.

Stocks on Bursa Malaysia closed lower yesterday, reversing earlier advances as losses in banking and Petronas-related stocks dragged the benchmark FBM KLCI below its previous all-time high closing of 1,788.43 registered on May 14. The FBM KLCI, which hit an intra-day high of 1,795.59, began a downtrend from 3.10pm and eventually closed 3.50 points or 0.20% lower at 1.783.88 points, after opening 1.23 points higher at 1,788.61. Losers led gainers by 618 to 323, with 249 counters unchanged. Turnover declined to 2.877 billion shares worth RM2.972 billion from 2.966 billion shares worth RM3.011 billion on Tuesday.

Taking cue from the rebound on Wall Street overnight, the FKLI spot month contract opened higher on Thursday morning at 1,771.50 and climbed gradually to the intra-day high of 1,777.50 but took a turn in the afternoon session and slipped to the intra-day low of 1,757.50 before closing at 1,764.

The Bursa market is closed today for Wesak Day holiday. Next week’s Support and Resistance for FKLI May contract is located around 1,750 and 1,790 respectively.

FCPO Related News (Fri, May 17)

Crude palm oil futures on Malaysia’s derivatives exchange end up as investors bought at lower levels following recent declines. Market chatter about improving export demand in the second half of this month provided underlying support to the market as well, an exporter in Pasir Gudang says. A rebound in exports in May could help ease stocks in Malaysia to 1.80 million tons at end-May from 1.93 million tons last month, the exporter adds and tips Friday’s trade in a MYR2,300-MYR2,360/ton band. New benchmark August CPO ends up 0.7% at MYR2,314/ton. CBOT July soyoil is up 0.2% at 49.43 cents/lb in screen trade.           [Dow Jones Newswire]

Malaysian palm oil futures rose on Thursday as buyers returned after three straight sessions of losses, and investor sentiment brightened for exports to recover in the second half of May. Shipments of palm oil fell between 3 percent and 8 percent over May 1 to 15 from the corresponding April period, fanning concerns that demand for the tropical oil is slowing, but traders said the decline was smaller than expected and exports could pick up in the coming weeks.

Traders also expect output in Malaysia, the world's second-largest producer, to slow this month and to help further ease stocks that have dipped below the psychological 2-million-tonne mark to 1.93 million tonnes in April. "There are buyers coming in to support the market, which can be seen from the increased trading volumes," said a trader with a foreign commodities brokerage in Kuala Lumpur.  "I've also been hearing that production this month is not as good as expected. It looks like end-stocks could dip further, and May's stocks could be the lowest in the whole year," the trader added.

By Thursday's close, the benchmark August contract on the Bursa Malaysia Derivatives Exchange had risen 0.7 percent to 2,314 ringgit ($768) per tonne. Prices traded in a range between 2,292 and 2,324 ringgit. Total traded volumes stood at 44,002 lots of 25 tonnes each, higher than the usual 35,000 lots. Malaysia announced on Wednesday it would set its crude palm oil export tax for June at 4.5 percent, unchanged since March. Top producer and biggest rival Indonesia is to set June taxes at the end of the month. In vegetable oil markets, U.S. soyoil for July delivery rose 0.2 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange rose 0.1 percent.           [Reuters]

Today’s Support and Resistance for benchmark FCPO August contract is located around 2,300 and 2,350 respectively.

FKLI Related News (Fri, May 17)

United States (US) stocks fell on Thursday, with the downturn accelerating late in the day after a Federal Reserve official said the central bank could begin easing up on its monetary stimulus this summer. The three major US stock indexes had earlier traded in a tight range, supported by a gain of more than 12 per cent in Cisco Systems shares and as investors took in a batch of economic data that pointed to slower growth.

U.S. stock index futures were little changed on Thursday following four days of losses on the S&P 500, with trading once more expected to be dictated by developments in Europe. Greek politicians rejecting the conditions for a bailout that is keeping the country's finances afloat are likely to win next month's elections, and the political turmoil has sent riskier assets sharply lower over the past weeks.  Spain's medium-term borrowing costs rose sharply in a Thursday auction of 3- and 4- year bonds, reflecting concerns over the Spanish banking system and economy. Giving investors some respite Japan's economy grew 1.0 percent in the first quarter, slightly more than expected, and a 0.2 percent contraction reported in the world's third-largest economy for the final three months of 2011 was revised up to flat.

The U.S. data calendar includes the release of first-time weekly claims for jobless benefits at 8:30 a.m. (1230 GMT). Economists in a Reuters survey forecast a total of 365,000 new filings compared with 367,000 in the prior week. S&P 500 futures edged up 0.4 point and were slightly above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 1 point, and Nasdaq 100 futures shed 3 points. The pan-European FTSEurofirst 300 index fell 0.8 percent after hitting a fresh 2012 low. A gauge of European bank stocks dropped 2.3 percent.          [Reuters]

Stocks on Bursa Malaysia ended broadly lower yesterday due to selling pressure, while regional bourses traded mixed, as investor excitement on Japan's better economic growth data was partly dampened by the country's softer capital expenditure data which fell 0.7 percent, in the fifth straight quarter of decline. The FBM KLCI which notched new historic highs on Monday and Tuesday, ended at 1,766.72, sliding 16.31 points or 0.91%, weighed down by losses in major blue-chips. 

FKLI spot month contract opened slightly higher this morning at 1,766 following Japan’s positive economic growth. Today’s Support and Resistance for FKLI May contract is located around 1,750 and 1,775 respectively.

FCPO Related News (Tues, May 7)

KUALA LUMPUR, May 6 (Reuters) - Malaysian palm oil futures slipped to nearly a 5-month low on Monday, weighed down as the ringgit surged against the dollar following the ruling coalition's win in the country's general elections. The Malaysian ringgit rose on Monday to its highest since September 2011 after the governing National Front coalition extended its 56-year rule, seeing off a strong challenge by an opposition alliance that had unnerved investors because of the potential for political instability.

   

The stronger ringgit made the palm oil feedstock more expensive for overseas buyers and lowered refiners' margins,keeping some investors on the sidelines. "The ringgit is strong today, but the stock index is also strong, so the palm oil market is only slightly down. We are still seeing some rangebound trading today," said a trader with a foreign commodities brokerage in Kuala Lumpur. Investors also avoided taking risks as they waited for official data on Malaysia's April palm oil stocks and output levels, due on Friday.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange edged down 0.1 percent to close at 2,250 ringgit ($756) per tonne. Prices earlier fell as low as 2,230 ringgit, a level last seen on Dec. 13. Total traded volumes were thin at 22,837 lots of 25 tonnes each, compared to the average 35,000 lots. Technicals showed a bearish target at 2,160 ringgit has been established, as a downtrend from the March 25 high of 2,505 ringgit has resumed, said Reuters market analyst Wang Tao.

Market participants are hoping that the next report on palm oil stocks supports prices, which have lost 7.7 percent so far this year. However, easing exports have raised concern that inventory levels may have fallen only marginally in April and held above 2 million tonnes. Palm oil stocks in Malaysia, the world's second largest producer, fell almost 11 percent to 2.17 million tonnes in March from February's 2.43 million tonnes.

   

In other markets, Brent oil rose above $105 a barrel on Monday to its highest in nearly a month as an Israeli air strike on a Syrian military facility refocused attention on Middle East supply risks, although prices pared gains after weak European economic data. In vegetable oil markets, the U.S. soyoil for July delivery gained 0.6 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange rose 1.9 percent.       

Today’s Support and Resistance for benchmark July contract is located around 2,230 and 2,280 respectively.

FKLI Related News (Tues, May 7)

NEW YORK, May 6 (Reuters) - U.S. stocks were little changed on Monday, pausing after a rally that pushed the Dow and S&P 500 to record highs last week on improving earnings and reassuring signs about the economy. Apple shares were among the top gainers, up 2 percent at $458.65 and giving the biggest boosts to the Nasdaq composite index and benchmark S&P. Market watchers said there is more room for stocks to rise as investors use weakness in the market as an opportunity to add to positions.

Although weak economic data from the euro zone and China has caused concerns over the global growth outlook, Friday's stronger-than-expected U.S. payrolls report fueled the gains that took the indexes to record levels. Equities have been strong so far this year, with the S&P 500 up more than 13 percent in 2013 on the back of strong corporate earnings and accommodating monetary policies that have kept interest rates low. The Dow Jones industrial average was down 26.54 points, or 0.18 percent, at 14,947.42. The Standard & Poor's 500 Index was up 0.46 point, or 0.03 percent, at 1,614.88. The Nasdaq Composite Index was up 6.21 points, or 0.18 percent, at 3,384.85.

Stocks on Bursa Malaysia closed higher across the board yesterday after the ruling Barisan Nasional retained power in the 13th General Election held on Sunday. The FBM KLCI also hit an all-time intra-day high of 1,826.22, boosted by a buying spree in heavyweight counters. The key index closed at a historic high of 1,752.02 points yesterday, up 57.25 points or 3.38% from last Friday's close after hovering between 1,743.14 and 1,826.22. Gainers led losers by 870 to 83 with 132 counters remained unchanged. Total volume almost doubled to 1.911 billion shares worth RM4.993 billion from Friday's 933.243 million shares worth RM2.315 billion.

Today’s Support and Resistance for FKLI May contract is located around 1,750 and 1,780 respectively.

FCPO Related News (Mon, May 6)

Malaysian palm oil futures slipped to a near 5-month low on Friday, posting a weekly loss of 2.7 percent, with many investors exiting the market as the country heads into polls. The Malaysian benchmark stock index lost more than a tenth on its first trading day after the country's last elections in 2008.  A weaker ringgit will be good for palm oil, but a weaker stock index is bad. Investors also avoided taking risks as they waited for further trading clues from official data on palm stocks and output levels due next week.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange fell 0.3 percent to close at 2,254 ringgit ($743) per tonne. Prices earlier fell to 2,243 ringgit, a level last seen on Dec. 14. Total traded volumes stood at 28,510 lots of 25 tonnes each, slightly below the average 35,000 lots. Cargo surveyor data on Tuesday showed April's palm oil exports fell between 4.3 percent and 5.6 percent on the month, on waning Chinese demand, stoking concern that prices, already down around 7.5 percent this year, could tumble further. Affin Investment Bank on Friday cut its average selling price forecast for crude palm oil in 2013 to 2,600 ringgit per tonne from 2,800 ringgit, citing a sluggish outlook due to "uneven global growth, high palm oil stocks, the outbreak of the H7N9 virus in China, and a likely delay in the implementation of biodiesel policy".

In other markets, Brent crude eased slightly lower below $103 a barrel on Friday, but held most of its gains from the previous session, as investors awaited U.S. jobs figures that may show the economy is quickening in the world's top oil consumer. In vegetable oil markets, the U.S. soyoil for July delivery rose 0.6 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange gained 0.9 percent.           [Reuters]

FCPO benchmark July contract opened slightly higher this morning at 2,263. Today’s Support and Resistance for benchmark July contract is located around 2,230 and 2,280 respectively.

FKLI Related News (Mon, May 6)

NEW YORK, May 3 (Reuters) - The S&P 500 and Dow industrials hit intraday record highs on Friday and the benchmark S&P traded above 1,600 after U.S. employment rose more than expected in April. In addition, hiring was much stronger than previously thought in the prior two months, the Labor Department said, easing concerns that government spending cuts were dealing a blow to the economy. The Dow Jones industrial average rose 135.27 points or 0.91 percent, to 14,966.85, the S&P 500 gained 16.01 points or 1 percent, to 1,613.6 and the Nasdaq Composite  added 34.62 points or 1.04 percent, to 3,375.25.

The report eased investor concerns after a raft of soft data, particularly in the manufacturing sector, and sent the S&P 500 hurtling past what was viewed as its final resistance level of 1,600 to a fresh all-time closing high of 1,614.42. With little in the way of economic data on tap next week and earnings season moving into the home stretch, there appears to be little that could derail a move higher. But revenue remains disappointing, with only 46.3 percent of S&P 500 companies topping Wall Street expectations, well below the 62 percent beat rate since 2002 and shy of the 52 percent average for the past four quarters.

KUALA LUMPUR, May 6 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) opened at an all-time high of 1,771.6, up 76.85 points on strong buying interest after the ruling party maintained power in the just-concluded general election. The previous high of 1,718.44 points was registered on April 30. At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rocketed 121.5 points to 1,816.27 points with 362 gainers, 12 losers, 32 unchanged and 1,205 counters untraded including 32 others that are suspended. Turnover stood at 120.59 million shares worth RM335.44 million.

HwangDBS Vickers said with the incumbent Barisan Nasional coalition returning to federal power after the 13th General Election, the removal of a political overhang could spark a relief rally on the Malaysian stock exchange today. "The benchmark FBM KLCI may be on its way to plot fresh all-time highs," it said in a research note Monday. Among actives, CIMB added 99 sen to RM8.60, UEM Land garnered 41 sen to RM3.05, Astro gained nine sen to RM3.04, Tebrau Teguh earned 15 sen to RM1.39 and SapuraKencana chalked up 32 sen to RM3.37. Heavyweights, Maybank added 59 sen to RM10.18, Axiata gained 64 sen to RM7.24, Sime Darby earned 45 sen to RM 9.81, Petronas Chemicals added 31 sen to RM6.79 and Tenaga rose 36 sen to RM8.14.

FKLI spot month contract opened very high this morning at 1,721 following the election results last night saw the ruling coalition retaining power. Today’s Support and Resistance for May contract is located around 1,720 and 1,820 respectively.