FCPO Related News (Fri, June 21)



KUALA LUMPUR, June 20 (Reuters) - Malaysian palm oil futures ended lower on Thursday, as global economic uncertainty spooked  investors, although losses were limited by robust export data and a weaker local currency that sent prices to a near three-month high inthe morning session. Exports of Malaysian palm oil products for      June 1 to 20 rose 16.2 percent to 928,810 tonnes from the same       period last month, cargo surveyor Intertek Testing Services said on Thursday.



The spike in shipments reflected higher purchases by India and  

Pakistan ahead of the Muslim holy month of Ramadan in July,       when communal feasting typically increases consumption of the     edible oil. Despite supportive fundamentals, investor sentiment was weak, with markets from crude oil to Asian shares tumbling on       Thursday, as slowing Chinese manufacturing activity hurt sentiment even  further after the Federal Reserve signalled it would begin to dial  down stimulus this year.     


"The market ended a little lower because of the fragile sentiment.  

But fundamentals are still supportive with exports rising higher and the ringgit still weak," said a trader with a foreign commodities       brokerage in Kuala Lumpur. The benchmark September contract on the Bursa Malaysia  Derivatives Exchange lost 0.3 percent to close at 2,465 ringgit ($771) per tonne. Prices rose to an intraday high of 2,491 ringgit in the morning, a level last seen on March 25.


Total traded volume stood at 34,107 lots of 25 tonnes each, slightly 

lower than the usual 35,000 lots. Despite the lower market close,     traders said a weak ringgit could still support prices, as it makes the tropical oil cheaper for overseas buyers and improves refining        margins. The ringgit lost nearly 3 percent against the dollar on 

Thursday, with the greenback stronger after the Fed's                      announcement.  In vegetable oil markets, U.S. soyoil for July lost

0.8 percent in late Asian trade. The most-active January soybean oil contract on the Dalian Commodities Exchange lost 0.5 percent.       

FKLI Related News (Fri, June 21)

Stocks crumpled Thursday, with the Dow shedding more than 350 points, under the weight of worries that the Federal Reserve would throttle back on easy money policies that have helped fuel the recovery. Concerns about China’s economy added fuel to the selling, which began in the U.S. Wednesday and spread swiftly around the globe to come full circle back to U.S. markets Thursday. It was a day of superlatives: the U.S. markets’ worst day so far this year and the biggest percentage drop – at 2.34 percent - for the Dow since Nov. 7, 2012, the day after President Obama was reelected.

The Dow Jones Industrial Average plummeted 353.87 points, or 2.34 percent, to 14,758.32. The broader S&P 500 Index fell 40.74 points, or 2.50 percent, to 1,588.19. The tech-heavy NASDAQ dropped 78.57 points, or 2.28 percent, to 3,364.63. The Dow sell-off alone had wiped out more than $120 billion of investors' capital since Fed Chairman Ben Bernanke's comments on Wednesday afternoon. In the last two days, the Dow and the S&P 500 have lost all of their gains for May and June combined.

Despite positive news on the U.S. housing front, higher than expected U.S. jobless numbers added to the gloomy atmosphere on the markets and benchmark Treasury yields were near their highest in almost two years. "Despite the sell-off yesterday, you saw the cyclical names holding on that's considered important because it's more indicative of the underlying strength of the economy," noted Quincy Krosby, market strategist at Prudential Financial. "We shouldn't be surprised by what the Fed said yesterday—Bernanke had already mentioned this in his speech back in May and we saw an immediate reaction in the bond market," said Krosby. "We haven't had a meaningful correction in the market and if this selloff continues…it doesn't mean the market is going to collapse; it is essentially recalibrating—the road to normal is going to be filled with detours."

European shares closed deeply in the red across the board with the FTSEurofirst 300 index falling nearly 3 percent. Markets in Asia were slammed, with the Japanese Nikkei closing down nearly 2 percent. South Korea's Kospi and the Shanghai Composite traded near 2013 lows. Adding to woes in Asia, China's HSBC Flash Purchasing Manager's Index, a preliminary reading of manufacturing activity, fell to a nine-month low in June.


FKLI spot month contract opened lower at 1,733 this morning following Dow’s big drop. Today’s Support and Resistance for June contract is located around 1730 and 1750 respectively.

FCPO Related News (Fri, June 7)

KUALA LUMPUR, June 6 (Reuters) - Malaysian palm oil futures rose to the highest in more than two months on Thursday, buoyed by optimism that stocks of the tropical oil in the world's second largest producer could have dropped in May. A Reuters survey on Wednesday showed that end-stocks in Malaysia may have eased to 1.78 million tonnes last month, their lowest in almost a year, as exports and domestic consumption offset near-stagnant production. Investors are now awaiting official stocks and output data scheduled to be released by industry regulator the Malaysian Palm Oil Board (MPOB) on Monday for more trading cues.

Export data for the first ten days of June will also be announced on the same day. "Today the market is supportive because of the follow through from Wednesday's gains -- now there's expectations that stocks would fall below 1.8 million tonnes," said a trader with a foreign commodities brokerage. "Traders are waiting for next week's MPOB report and export data. Exports in June 1-10 should be around 400,000 tonnes, slightly better than May 1-10, as we move into the festive month," the Kuala Lumpur-based trader added, referring to the Muslim holy month of Ramadan, which begins in July this year. At market close, the benchmark August contract on the Bursa Malaysia Derivatives Exchange rose 1.3 percent to 2,434 ($790) ringgit per tonne, slightly below its intraday high at 2,436 ringgit, its loftiest since March 27.

Total traded volumes stood at 28,268 lots of 25 tonnes each, thinner than the average 35,000 lots as traders stayed on the sidelines ahead of next week's data. Technicals showed palm oil faces resistance at 2,420 ringgit per tonne, a break above which will lead to a further gain towards 2,457 ringgit, Reuters market analyst Wang Tao said. Palm oil is on track to post its fifth straight weekly gain, after prices in May climbed nearly 5 percent due to restocking ahead of Ramadan, despite weaker demand from the world's second biggest buyer China. Communal feasting during Ramadan typically drives up edible oil consumption. Prices of the edible oil have also been supported by a steady decline in stocks, from a record high of 2.63 million tonnes in December, as seasonally weaker production in the first half of the year helped offset sluggish exports.

In other markets, Brent edged further above $103 a barrel as a drop in U.S. oil stocks and news of lower Iranian exports outweighed worries that the U.S. Federal Reserve may scale back its economic stimulus. In vegetable oil markets, U.S. soyoil for July crept up 0.2 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange ended almost unchanged.

Today’s Support and Resistance for benchmark FCPO August contract is located around 2,420 and 2,460 respectively.

FKLI Related News (Fri, June 7)

NEW YORK (Reuters) - U.S. stocks rose on Thursday, with the Dow swinging nearly 200 points from its session low to high and the S&P 500 recovering after hitting a key technical level in volatile trading a day before the release of the U.S. jobs report. Market volatility has increased recently and the S&P 500 has lost 3 percent since Federal Reserve Chairman Ben Bernanke's comments two weeks ago that the central bank may decide to reduce stimulus in the next few policy meetings if data shows the economy is improving. The move follows a rally for much of this year, largely on the Fed's continued stimulus actions.

The three major U.S. stock indexes finished Thursday's choppy session at their highs for the day. The session's best performers included financials and health care, with each of those S&P sector indexes ending up 1.4 percent. Economists expect the non-farm payrolls report on Friday will show job growth of 170,000 in May, slightly above April's addition of 165,000 positions. They expect the U.S. unemployment rate will remain steady at 7.5 percent. The jobs report will come one hour before U.S. stock trading begins on Friday. "Technically, the 1,600 level is an important area to hold," said Michael Sheldon, chief market strategist at RDM Financial, in Westport, Connecticut.

The pickup in market volatility over the past couple of weeks reflects investors' uncertainty over Fed policy, combined with worries about a still sluggish global economy, he said. The European Central Bank kept interest rates unchanged on Thursday and left other policy tools untouched after discussing options it could use if the euro zone's economy does not come out of recession later this year. ECB President Mario Draghi said economic conditions did not justify moves such as requiring banks to pay to leave their money with the central bank overnight.  

Oil prices rose on Thursday as Britain's largest oilfield was shut down for the second time in less than a week, and as a major U.S. refinery prepared to re-start this month. Global equities moved higher while the dollar slid against the euro and yen on Thursday as investors reduced heavy bets on the greenback on concerns that  Friday's U.S. jobs report will disappoint. Gold rose 1 percent in a late recovery on Thursday as the dollar fell sharply against the yen and the euro on fears of weak U.S. jobs data that will be released on Friday.           [Reuters]

Bursa Malaysia closed lower yesterday in cautious trading on mild profit-taking, with losses seen in selected heavyweights, dealers said.  After the ‘see-saw’ trading, the barometer index FBM KLCI fell 4.82 points to close at 1,769.6. The key index moved between 1,777.74 and 1,767.23 throughout the day. On the regional front, a dealer said most of the Asian bourses were lower yesterday on uncertainty over the US employment data to be released today. “Strong data could prompt the Federal Reserve (Fed) to tighten policy sooner rather than later while weaker data could be viewed as bullish, as it will provide more cover for the Fed to keep the stimulus in place,” he said.          [Bernama]

FKLI spot month contract opened unchanged this morning at 1,766.50. Today’s Support and Resistance for June contract is located around 1,765 and 1,775 respectively. 

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.