FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange ended lower Thursday as ample palm oil supplies amid seasonally higher output season weighed on prices. The benchmark November contract on Bursa Malaysia Derivatives ended 0.6% lower at 2,912 ringgits a metric ton after moving in a MYR2,894-MYR2,948 range.

"Also, palm oil refiners in Malaysia aren’t processing the crude grade into refined products due to weak margins, so expect end-September and end-October inventories to go higher," a Malaysia-based senior executive at a local vegoil refinery said. Stockpiles in the world’s second largest CPO producer rose to 2.12 million tons end-August, the highest level since last October, the Malaysian Palm Oil Board said in a Sept. 10 crop report. (Dow Jones Newswire)

Soybean futures on the Chicago Board of Trade ended modestly higher on Thursday, rebounding from early weakness after the U.S. Federal Reserve announced a fresh phase of monetary stimulus, traders said. The Fed’s move is expected to boost investment in riskier assets including commodities, as have previous stimulus initiatives. Deteriorating soy supplies in the U.S. at a time of rising Southeast Asian CPO supplies are keeping soyoil’s premium at more than $300/ton to palm oil. The wide price gap limits further falls, Rabobank said in a note. "Tight supplies of soyoil will increasingly shift demand to palm oil in coming months."  

However, according to Reuters market analyst Wang Tao, technicals showed palm oil will end its current rebound around a resistance at 2,960 ringgit per tonne and drop back to its Sept. 11 low of 2,874. Industry analyst James Fry told an industry seminar earlier in the day that palm oil prices could fall to 2,450 ringgit per tonne in the first quarter of 2013 if Brent crude dropped to $80 a barrel.

FKLI Related News

NEW YORK, Sept 13 (Reuters) - U.S. stocks and crude oil prices rose and the dollar weakened o n T hursday as investors bet the Federal Reserve's fresh dose of monetary stimulus would improve economic growth. The U.S. central bank initiated another aggressive stimulus program, saying it will buy $40 billion of mortgage-backed debt per month until the outlook for jobs improves substantially as long as inflation remains contained.

Analysts said the Fed's move would have wide-reaching impact and was part of a global shift toward extra monetary stimulus. "You're witnessing global economic stimulus across the board," said Quincy Krosby, market strategist at Prudential Financial. "The Fed's actions are occurring in conjunction with the European Central Bank's commitments to support the euro and amid talk that China could also deliver a stimulus package." China's central bank cut interest rates in June and July and has lowered banks' reserve requirement ratio three times since late 2011 to free money for new lending. It could repeat those measures to help shore up the world economy.

Stocks made strong gains after the Fed released its statement, propelling the S&P 500 stock index to its highest close since December 2007. The prospect of even lower rates pushed investors to seek higher returns in riskier assets like stocks. The Dow Jones industrial average ended up 206.51 points, or 1.55 percent, at 13,539.86. The Standard & Poor's 500 Index was up 23.43 points, or 1.63 percent, at 1,459.99. The Nasdaq Composite Index gained 41.51 points, or 1.33 percent, to 3,155.83.

Today’s Support and Resistance for FKLI is located around 1620 and 1650 respectively.

FCPO Related News

Sept 12 (Reuters) - Soybean futures on the Chicago Board of Trade climbed 2.6 percent on Wednesday, the biggest rise in three weeks, after the U.S. Department of Agriculture cut its forecasts for U.S. 2012 soybean yield and production, traders said.

Benchmark crude palm oil futures on Malaysia’s derivatives exchange settled higher Wednesday after erasing early losses, as investors shifted focus to a U.S. Department of Agriculture crop report due later in the global day. The benchmark November contract at Bursa Malaysia Derivatives ended 0.4% higher at 2,930 ringgit a metric ton after falling to MYR2,887/ton in intraday trade.

Hopes of further stimulus measures in China are also rising, which is positive for CPO, a Singapore-based trader said, referring to a hint from Chinese Premier Wen Jiabao Tuesday that China is ready to inject massive stimulus into the economy. Morgan Stanley forecast in a report this week that CPO prices could touch as high as $1,200/ton, or about MYR3,685/ton, by the second quarter of next year as demand from China and India is expected to rebound.

Imports of crude palm oil will account for a bigger share of India’s cooking oil imports, with shipments tipped to reach 6.3 million tons in 2012-13, up 17% on year, B.V. Mehta, executive director of the Solvent Extractors’ Association of India, said at an industry conference in Kuala Lumpur Wednesday. (Dow Jones Newswire)

Reuters technicals market analyst Wang Tao said palm oil is likely to drop to 2,869 ringgit per tonne, driven by a downward wave. A rebound from the current level will be limited to 2,947 ringgit.

FKLI Related News

Stocks rose for the fourth time in the past five sessions as volume
picked up on both major exchanges Wednesday. The indexes
gapped up at the open on news from Europe. Germany's high court ruled that Berlin's approval of a bailout fund for debt-ridden European Union nations was not unconstitutional. (Investor’s Business Daily)

Meanwhile, investors awaited the results of the Federal Reserve's rate-setting committee, which is set to announce its latest statement after its two-day meeting ends on Thursday. Expectations that new stimulus measures will be announced are running high and helped push the Dow on Tuesday to close at the highest level in nearly five years.

Apple Inc shares staged a late day rally to finish up 1.39 percent to $669.79 after it unveiled its much anticipated  iPhone 5.  The product, which will feature a bigger screen, an improved camera and better battery life, was largely in line with consensus estimates. Facebook Inc jumped 7.7 percent to $20.93 after Chief Executive Mark Zuckerberg hinted at new growth areas from mobile to search in his first major public appearance since the No. 1 social network's rocky IPO in May.

The Dow Jones Industrial Average rose 9.99 points, or 0.08%, to close at 13,333.35, its highest finish since December 2007. The Nasdaq Composite added 9.78 points, or 0.3%, to 3,114.31.

European markets finished a touch higher, after Germany's Constitutional Court cleared the way to allow the country to ratify the euro zone's permanent bailout fund. The Stoxx Europe 600 finished with a gain of 0.1%, at its highest closing level since July 8, 2011, and Germany's DAX climbed 0.5% to a seven-week high.

Asian markets rallied after Chinese Premier Wen Jiabao said economic growth would meet the official target of 7.5% for 2012. China's Shanghai Composite gained 0.3% and Japan's Nikkei Stock Average surged 1.7%.

The KLCI ended Wednesday flat at 1613.78. Today’s Support and Resistance is located around 1,600 to 1,630 respectively.

FCPO Related News

Crude  palm  oil  futures  on  Malaysia’s   derivatives   exchange   ended   lower   Tuesday,   pressured  by expectations  that  stockpiles  could rise further in September as production increases and demand softens. Investors also liquidated riskier positions  ahead  of  a  key  monthly  report  on  supply  and  demand  due Wednesday from the U.S. Department of Agriculture, trade participants said. The benchmark November contract at Bursa Malaysia Derivatives ended 0.6% lower at 2,919 ringgit a metric ton after falling as much as 2% at MYR2,874/ton, the lowest since August 15.

Analysts have forecast robust palm oil inventories in Malaysia and lower demand due to slowing economic growth. Increased harvesting activities and rising yields could drive end-September and end-October stock levels to 2.21 million and 2.32 million tons, respectively, HwangDBS Research said. Palm oil stockpiles reached 2.12 million tons at end-August, the highest level in 11 months. To aggravate further, Indonesia's stock level appears to be higher than consensus expectations.

Hamburg, Sept 11 (Reuters) – Strong global demand for US soybeans will keep soybean prices firm in the coming months despite the recent fall from early September’s record highs, Hamburg-based oilseeds analyst Oil World said on Tuesday. Global importers will have little choice but to compete for scarce US supplies after poor crops in Brazil and Argentina in early 2012, it said. “Soybean prices have only limited downward scope as long as US exporters face outstanding demand, primarily from China,” Oil World said.

The bullishness may be dampened somewhat by rapid marketing of the US crop as farmer selling is encouraged by huge premiums for nearby delivery”.U.S. grain and soybean futures declined Tuesday, pressured by selling from investors seeking to cut their exposure to risk ahead of Wednesday's monthly crop report from federal forecasters.

Technicals will remain neutral until palm oil falls out of the range of 2,895 to 2,943 ringgit, said Reuters market analyst Wang Tao, adding that a drop below 2,895 ringgit would extend to 2,867 ringgit.

FKLI Related News

NEW YORK (Reuters) - The Dow industrials closed at the highest level in nearly five years on Tuesday in a lightly traded session before key decisions in Germany and the United States that could give markets a further boost.

Energy, industrial and financial firms led the advance. Contributing to gains by the Dow industrials, shares of International Business Machines Corp (IBM.N) rose 1.15 percent to $203.27. Heavy equipment manufacturer Caterpillar (CAT.N) added 1.72 percent to $88.60.

Equities have rallied in recent weeks on hopes for monetary stimulus by central banks. The Federal Reserve could announce Thursday additional steps to support low interest rates. On Wednesday, Germany's highest court will decide on the legality of the euro zone's new bailout fund. Economists forecast a 60 percent chance the U.S. central bank will announce another round of quantitative easing at the end of its two-day meeting. Disappointing U.S. August jobs data released last Friday bolstered that view.

The Dow Jones industrial average (^DJI) ended up 69.07 points, or 0.52 percent, to 13,323.36. The Standard & Poor's 500 Index (^GSPC) closed up 4.48 points, or 0.31 percent, to 1,433.56. The Nasdaq Composite Index (^IXIC) gained 0.50 point, or 0.02 percent, to 3,104.53.

0937 GMT [Dow Jones] Malaysia shares end down 0.4% at 1614.24, pressured by profit-taking in construction and financial stocks. "I am not expecting any significant breakouts in the KLCI this week, as investors wouldn't want to be caught with major investments ahead of the long weekend," says a local dealer. The benchmark index is tipped to trade in a 1601-1630 band this week.

FCPO Related News

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Monday, underpinned by firm export demand in the first 10 days of September.

The benchmark November contract at Bursa Malaysia Derivatives ended 0.3% higher at 2,937 ringgit a metric ton after moving in a MYR2,897-MYR2,947 range. "The market moved into positive territory, as the surge in exports could help reduce Malaysian stockpiles that have risen to 2.12 million tons," said a Singapore-based physical market broker.

Industry regulator the Malaysian Palm Oil Board said Malaysia’s August CPO output fell 1.7% from July to 1.66 million tons, while stocks rose 5.8% from end-July to 2.12 million tons, the highest since last October. Cargo surveyor Intertek Agri Services put Sept. 1-10 exports at 453,302 tons, an increase of 27% on month, while another surveyor, SGS, put exports at 460,939 tons, up 30%. According to SGS data, Malaysia’s higher overall palm oil shipments during the Sept. 1-10 period were driven mainly by a more than twofold rise in CPO exports to 167,663 tons, with analysts attributing the surge to Malaysia’s decision earlier last month to allow an additional 2 million tons under a tax-free CPO export quota for the rest of the year.

Exports could rise further in the coming months, as supply of rival soyoil is expected to be at its tightest "as we move into 4Q and 1Q 2013…which therefore bodes well for CPO demand and prices over the next six months," Macquarie Research said in a note.

(Dow Jones Newswire)

Today’s Support and Resistance is located around 2890 and 2990 respectively.