Wednesday, June 9, 2010

20100609 1815 FCPO EOD Daily Chart Study.

FCPO closed : 2418, changed : -14 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : continue lower, seller in control.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Continue weaker FCPO traded in improving volume but support still defended well as price failed to break below 2400 level. Daily chart reading started to turned into suggesting a downside biased potential market for the near term.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.

20100609 1747 FKLI EOD Daily Chart Study.

FKLI closed : 1286, changed : +3.5 points, volume : lower.
Bollinger band reading : side way downside biased.
MACD Histrogram : continue higher, seller reducing exposure.
Support : 1280, 1274, 1270 level.
Resistant : 1290, 1300, 1310 level
Comment :
Deteriorating volume FKLI ended the day on higher ground by traded mostly range bound after tested immediate middle Bollinger band resistant level followed by selling activities to push price down off the high.
Daily chart reading continue to record side way range bound downside biased reading for the near term.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/breakdown with larger cut loss and profit target.

20100609 1729 Palm Oil Related News.

Indonesia's Astra Agro Jan-May CPO output falls 4.2 pct
JAKARTA, June 9 (Reuters) - Indonesia's largest listed plantation firm PT Astra Agro Lestari  saw crude palm oil output from January-May 2010 fall 4.2 percent compared to the same period last year, it said in a statement.
Astra Agro said it produced 378,674 tonnes of crude palm oil in the period, compared to 395,334 tonnes in January-May 2009.

20100609 1318 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1283.5, changed : +1 point, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : weakening, not much action from both buyer and seller.
Support : 1280, 1274, 1270 level.
Resistant : 1290, 1300, 1310 level
Comment :
Doing 6.5 points discount range bound FKLI closed 1 point higher in quiet volume traded for the morning session after regional market having mixed development. Hourly chart suggesting a side way range bound market with tighter market range development.

20100609 1247 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2406, changed : -26 points, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller seize control.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Fall in Dalian palm oil futures market and a weaker soy oil futures price affect FCPO price to continue weaker today in much better volume transacted but support seems holding well at previous testing level. Hourly chart reading suggesting a downside movement biased potential market testing lower support level.

20100609 1223 Global Economic News.

China: PBOC says debt crisis, trade to affect growth
China’s economic growth will be affected by the international sovereign debt crisis and trade frictions, the People’s Bank of China said. The world’s fastest-growing major economy still doesn’t have a “solid” recovery in domestic demand, and has to sustain consumer spending growth, the nation’s central bank said. Governments worldwide exiting stimulus spending will also impact its growth, it said. (Bloomberg)

China: Passing peak in growth insufficient to tame inflation
China’s policy makers may see evidence this week that economic growth peaked in the first quarter, strengthening their opposition to higher interest rates even as inflation accelerates. Consumer prices jumped 3%, hitting the government’s targeted full-year ceiling, after a 2.8% increase in April, according to the median of 32 estimates in a Bloomberg News survey before the 11 June release. In contrast, lending, investment and industrial output figures due this week may show a slower pace of gains, according to survey estimates. (Bloomberg)

Japan: Noda named Japan’s finance minister, tasked with tackling debt
Yoshihiko Noda was named Japanese finance minister, bringing support for spending cuts as Prime Minister Naoto Kan compiles a plan to rein in the world’s biggest public debt. Noda becomes the nation’s ninth finance chief in four years, replacing Kan, who takes office as premier following last week’s resignation of Yukio Hatoyama. (Bloomberg)

Japan : Current-account surplus widens on exports in April.
The gap rose 88% YoY to JPY 1.242tr (USD 13.6), the Ministry of Finance said. (Source: Bloomberg)

S. Korea : Unemployment rate declined to 3.2% last month from 3.7% in April, Statistics Korea said in Gwacheon, citing seasonally adjusted figures. (Source: Bloomberg)

Euro: Rescue fund created to combat debt crisis
European finance ministers put the finishing touches on a rescue fund being backed by 440bn Euros (USD524 bn) in national guarantees, seeking to halt the spread of Greece’s debt crisis. The European Financial Stability Facility would sell bonds backed by the guarantees and use the money it raises to make loans to euro-area nations in need, the finance ministers agreed. The new entity would sell debt only after an aid request is made by a country. (Bloomberg)

Euro : Countries to tighten budgets in 2011, defying U.S.'s pleas.
European governments vowed to raise taxes or cut spending next year, balking at U.S. pleas for looser budget policies to help speed the recovery from the worst recession since World War II. Budgets will remain "neutral" in 2010, becoming "clearly restrictive as of 2011 when recovery is expected to gain momentum," Luxembourg Prime Minister Jean-Claude Juncker told reporters after chairing a meeting of euro-region finance ministers in Luxembourg. (Source: Bloomberg)

U.K : Fitch says Cameron faces 'formidable' debt task.
Prime Minister David Cameron needs to accelerate budget-deficit cuts to protect Britain's top credit rating, Fitch Ratings said. The U.K. is lagging behind other European countries in publishing deficit-reduction plans as investor concerns over government debt loads increase. (Source: Bloomberg)

US: Small-business confidence increased in May
Confidence among US small businesses rose in May to the highest level since September 2008 as executives became more upbeat about the economy six months from now, a private survey found. The National Federation of Independent Business’s optimism index increased to 92.2 last month from 90.6 in April. (Bloomberg)

US: Bernanke says unemployment unlikely to fall quickly
Federal Reserve Chairman Ben S. Bernanke said the US recovery probably won’t quickly bring down the unemployment rate, which is likely to stay “high for a while.”Given the depth of the recession, the recovery is “moderate paced,” Bernanke said, in Washington._While the Fed will raise interest rates from a record low before the economy returns to “full employment,” Bernanke said officials don’t know when that process will start. The banking system isn’t fully healthy and lenders are “cautious” in providing credit, he said. (Bloomberg)

20100609 1218 Malaysia Corporate News.

Separate listings for 3 AirAsia affiliates
The group plans to seek separate listings for AirAsia X, Thai AirAsia and Indonesia AirAsia so that investors can clearly choose to invest by geographic and business models. Long-haul affiliate AirAsia X may seek an initial public listing as early as the second half of next year. (BT)

Hong Leong maintains RM5bn EONCap offer
Hong Leong has asked Bank Negara on 4 June for more time to talk to EONCap as its offer has yet to reach the latter's shareholders. Hong Leong Bank says there is no change to the structure of its all-cash takeover offer for smaller rival EON Capital (EONCap). Hong Leong said its RM5.06bn offer as set out on 1 April this year would be maintained. It said this in response to a query over a report that its adviser had suggested a convertible equity option be structured into the offer. Bank Negara had earlier allowed for the two to be in talks only until 30 June. (BT)

Proton: Lotus not for sale now
Proton Holdings says its wholly-owned Lotus Group International Ltd is not for sale now although it has received unsolicited offers. “The board wishes to state that Lotus is and continues to be a strategic entity within Proton, as well as a technology catalyst,” it told Bursa Malaysia. It was clarifying a news report that said it may sell 40% of Lotus to its management team. (BT)

Mudajaya eyes India projects
Builder Mudajaya Group hopes to secure five ultra mega power projects (UMPPs) in India, each worth US$5bn (RM16.6bn). It was earlier reported that Mudajaya and R.K.M Powergen Private Ltd, an associate company of Mudajaya Corp (which in turn is a wholly-owned unit of Mudajaya Group) are in talks with a Malaysian independent power producer to form a consortium and bid for the UMPPs there. "We are still in talks and hope to get something out of this by the end of the month," said Mudajaya Group managing director Ng Ying Loong. He said the group is hopeful to at least secure one of the UMPPs, which has a generation capacity of 4,000 megawatts (MW) each. (BT)

Petronas hires bankers for US$2bn Petrochem IPO
National oil company Petroliam National (Petronas) has hired Deutsche Bank, CIMB and Morgan Stanley as
book-runners to advise on a planned US$2bn (RM6.64bn) listing of its petrochemical business, sources with
knowledge of the deal said. The listing will likely take place in the 4Q of this year depending on market conditions, one of the sources told Reuters. (FinancialDaily)

20100609 0833 Soy Oil / Palm Oil Related News.

Soyoil futures ended higher, staging a modest bounce from recent downtrend. Profit-taking on meal/oil spreads, talk of improving soyoil demand internationally at the expense of palm oil and higher crude oil futures helped buoy prices, said Allendale's Joe Victor. July soyoil settled 0.20 cents, or 0.5%, higher at 36.67 cents per pound. Speculative funds were estimated buyers of 2,000 lots in soyoil(Source: CME).

Malaysia May Palm Oil Output Likely Rose 5%-7% -Market Sources(Source: CME)
Malaysia's palm oil output likely rose 5%-7% on month to around 1.37 million-1.40 million metric tons, but end-May palm inventories were probably little changed at 1.62 million-1.63 million tons because exports didn't rise enough to offset the seasonal increase in production, market participants said.
At the end of April, stocks were at 1.62 million tons, according to data from the government-linked Malaysian Palm Oil Board. The MPOB is expected to issue data on Malaysia's May palm oil production, exports and end-month stocks Thursday.
"The rise in production is likely to continue into June but (it) may be gradual as heavy rains may disrupt harvesting activities," said a senior executive of a Malaysia-based plantation company.
Rising production and inventories will likely continue to weigh on market sentiment, trade participants said.
"Prices may remain in a MYR2,400-MYR2,500/ton range," said a senior executive at a Kuala Lumpur-based commodities brokerage.
Output in May probably rose due to better yields at estates in peninsular Malaysia, while production in Sabah and Sarawak region saw only mild increases in yields, growers said.
Though May palm oil exports were higher at 1.32 million-1.33 million tons, many trade participants said market sentiment remained cautious due to rising inventories.
Domestic consumption in May is estimated around 155,000 tons and imports from Indonesia at 70,000 tons, with end-May stocks likely at 1.62 million tons, said a Singapore-based trading executive.

USDA Looking Into Possibility Of US Soyoil Exports To China(Source: CME)
The U.S. Department of Agriculture, at the behest of the U.S. soybean industry, is looking into how to facilitate soyoil exports to China now that the country restricted its purchases from Argentina.
China announced in April that Argentine soyoil did not meet Chinese standards and restricted trade, but the action is believed to be retaliation for Argentina's previous curbs on Chinese goods.
As a result, there appears to be an opening for U.S. suppliers to step in to do business with China, but they will need help from the USDA, according to U.S. soybean industry officials who asked not to be named because negotiations with China are ongoing.
China requires a government phytosanitary certificate to accompany the soyoil it imports. The certificate is to verify that there are no plant pests in the soyoil, but USDA does not traditionally issue certificates for soyoil because the product is processed in a way that would kill any pests.
USDA's Animal and Plant Health Inspection Service, a spokesperson said Monday, is looking into "options" to help U.S. soyoil exporters make sales to China.
"We have discussed things with our Chinese counterparts, which is necessary for any negotiations," the USDA spokesperson said.
China is the world's largest soyoil importer, according to the USDA, which predicted recently that Chinese imports will total 2.15 million metric tons in the 2010-11 marketing year. That's up from the 1.9 million tons USDA estimates that China imported in 2009-10.
China imported 2.7 million tons of soyoil in the 2007-08 marketing year and Argentina provided 1.8 million tons of that total, according to a February report compiled by USDA's Foreign Agriculture Service.

DuPont Receives USDA Approval For New Soybean
DuPont (DD) said Tuesday that the Department of Agriculture approved its Plenish high oleic soybean for cultivation in the U.S.
"This is a significant milestone as we work to develop biotech traits that provide direct consumer benefits and solid results in the fields," DuPont said.
The soybeans contain the highest oleic acid content of any soybean product under commercial development.
Plenish high oleic soybean oil also have 20% less saturated fat than commodity soybean oil, "making it a more attractive ingredient for consumer food products," DuPont said. 

Palm oil flat as market eyes key industry data
KUALA LUMPUR, June 8 (Reuters) - Malaysian crude palm oil futures made little headway  as investors waited for cues on stocks and production data due this week although concern about Europe's debt crisis sapped sentiment. "The Malaysian market is contained in a tight range, there may be some support if crude oil recovers," said a trader at a foreign brokerage.

Poor weather to curb rapeseed crop in west Europe
PARIS, June 8 (Reuters) - This summer's rapeseed harvest in western Europe is set to bring lower yields after unfavourable conditions at several growth stages, curbing output after bumper crops last year in top producers Germany and France.
The region was still on course for a large crop, while yield results were hard to call ahead of the critical pod-filling phase, analysts and traders said.

Ukraine rapeseed crop, exports to fall -consultant
KIEV, June 8 (Reuters) - Ukraine's 2010 rapeseed crop is likely to fall to 1.6 million tonnes from 1.85 million in 2009 due to a smaller harvesting area, UkrAgroConsult consultancy said on Tuesday.
The consultancy said in a statement a smaller crop would cause rapeseed exports to fall to 1.56 million tonnes in the 2010/11 season from 1.8 million in 2009/10.

Argentina says China soyoil row to be resolved soon
BUENOS AIRES, June 7 (Reuters) - Talks between Argentina and China over the Asian giant's freeze of Argentine soyoil imports are progressing and the dispute could be resolved soon, Argentina's agriculture minister said on Monday.
China, the world's largest buyer of soyoil, halted shipments from Argentina, the top global exporter, in late March in retaliation for anti-dumping measures imposed by the South American country on some Chinese manufactured goods.