Friday, November 12, 2010

20101112 1831 FCPO EOD Daily Chart Study.

FCPO closed : 3353, changed : -43 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned downward, buyer taking profit.
Support : 3350, 3300, 3270 level.
Resistant : 3420, 3450, 3470, 3500 level.
Comment :
Sell off in world major commodities including soy oil and crude oil as US Dollar continue to rebound higher lead FCPO opened and traded lower with panic selling triggered market to recorded drop of 127 points but manage to recovered upward to recorded moderate losses today with lesser volume transacted. At the same time China Dalian exchange crude palm oil and soy oil also recorded limit down. Daily chart formed a hanging man doji bar candle again(now is hanging man + shooting star + hanging man) having pullback correction with the reading suggesting a correction range bound upside biased market development testing support and resistant level.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101112 1829 FKLI EOD Daily Chart Study.

FKLI closed : 1491, changed : -21.5 points,  volume : higher.
Bollinger band reading : correction range bound.
MACD Histrogram : getting lower, buyer taking profit and reducing position.
Support : 1485, 1470, 1458 level.
Resistant : 1500, 1530, 1550 level.
Comment :
Power slam dunk! Heavy selling pressure FKLI dived deep recorded loss with ultra high volume traded as buyer locking in profit and closing position in unison with regional market that traded all in red negative territory as US Dollar continue to traded stronger. Daily chart formed a huge wide range down bar candle with a 11.5 points lower shadow(probably due to margin call force selling or stop triggered) touched lower Bollinger band level doing a significant correct after the recent rally. Reading wise, market started to turned into a correction side way range bound market development testing support and resistant level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101112 1107 Biofuels Related News.

Biofuels To Boost Northern England Wheat Prices (Source: CME)
Wheat prices in north-east England are set to rise to parity with the south due to demand from the country's burgeoning biofuels sector, an industry consultant said. Wheat exports from the region will all but cease as a swathe of new refineries using the grain to produce biofuels comes online, Richard Whitlock, previously a senior executive with Frontier Agriculture, told the Home Grown Cereal Authority's biofuels conference near York, England. Instead, demand for more than 2 million metric tons of wheat from refiners such as Ensus in Teesside and Hull-based Vitergo--due to come online in mid-2011--will ramp up the expansion of the region's 5.3 million ton output, he said. "Price opportunities...will give [farmers] every opportunity to maximize the investment in big output crops," he said.
The prediction comes as concern has mounted in some corners that the expansion of the U.K.'s biofuels sector may sap the country's exports. But for farmers facing dwindling European Union subsidies and increasing volatility in grain prices, security of demand for their crops will come as a welcome addition to the market. "This is a fantastic opportunity for British agriculture," said Whitlock. He also dismissed fears refiners will demand high-specification wheat types, insisting that for now at least, plants will be satisfied with standard feed wheat and would prefer the benefits of a fast turnaround of supplies--the average delivery taking only eight minutes--to the lengthy process of measuring quality. Still, he noted the EU's biofuels sector is still in its infancy and government incentives remain a key driver in a highly politicized market.
"It is about good science--that will be the solution for our future," he said.

EU biofuels growth on hold as green benefits queried
LONDON, Nov 10 (Reuters) - The European Union's biofuels industry is unlikely to expand until the debate about their impact on climate change is resolved and clear policies emerge, the head of major UK biofuels firm said on Wednesday.
"The (biofuels) industry is being held back by a lack of robust discrimination between what is good and what is bad," Alwyn Hughes, chief executive of Ensus said, referring to the differing environmental footprints of biofuels.

20101112 1106 Global Market News.

OIL: Crude falls on strong dollar after ending flat
TOKYO, Nov 12 (Reuters) - U.S. crude futures edged lower on Friday off a 25-month high hit a day earlier, pressured by a stronger dollar.
The current rally has seen prices break above the $70-$85 range, partly on OPEC's signals that it can tolerate higher oil prices and on a plan by the Federal Reserve to buy $600 billion in U.S. Treasury bonds to help speed economic growth.

COMMODITY MARKETS: Copper off record high as commods retrace gains
NEW YORK/LONDON, Nov 11 (Reuters) - Copper hit a record high on Thursday, tracking this week's historic milestones in gold and tin while oil pulled back after hitting a 25-month high, as the rallying U.S. dollar pressured both markets late.
"You can't stop it, it's a flood," Lars Steffenson, managing director at Ebullio Capital, said of the flow of money into commodities. "China's looking good," he added.

GLOBAL MARKETS: Euro hit by debt worry, tech stocks hit Wall St.
NEW YORK, Nov 11 (Reuters) - The euro fell to a five-week low on Thursday on concerns about Ireland's ability to repay its debt while earnings fears knocked U.S. stocks lower after a technology bellwether Cisco Systems gave a dismal outlook.
"The market has gone back to focusing on Europe rather than the U.S., where rates are currently very low," said Greg Anderson, G10 FX strategist at Citigroup in New York. "It has become a game of 'Which currency do you dislike the most?' and right now that currency is the euro."

Cushing oil stocks rise 241,034 barrels - Genscape
NEW YORK, Nov 11 (Reuters) - Oil inventories at the key U.S. crude oil hub at Cushing, Oklahoma, rose by 241,034 barrels to 35.07 million barrels in the week to Nov. 9, Genscape data showed on Thursday.
According to Genscape, it was the second consecutive weekly rise in Cushing inventories following five weeks of draws from the huge tank farm. 

High Oct CPI Rise Mainly Due To Food, Property-Related Items (Source: CME)
The sharp rise in China's October consumer price inflation was partly caused by a bigger-than-expected impact on food prices from rising global prices for agricultural products and commodities, Sheng Laiyun, spokesman for China's National Bureau of Statistics, said. Sheng also said China's government would have to work harder to achieve its 2010 CPI target of around 3% and that the country expects a negative impact on China's economy and inflation from quantitative easing policies in other countries, which he said would push global raw materials and agricultural product prices even higher. China's consumer price index rose 4.4% in October, accelerating from September's 3.6% rise to its highest level in two years, driven by a 10.1% rise in food prices.

PRECIOUS-Gold inches up on dlr rally pause, physical buying
SINGAPORE, Nov 11 (Reuters) - Gold prices edged up on physical demand and a pause in a dollar rally as investors closely watched for currency signals from the Group of 20 leadership summit that began on Thursday in Seoul.
Spot gold  gained 0.3 percent to $1,407.34 an ounce by 0613 GMT, off the all-time high of $1,424.10 hit on Tuesday.

FOREX-Euro hampered by fragile periphery; G20 under way
LONDON, Nov 11 (Reuters) - The euro dipped on Thursday after skidding to a five-week low the previous day, with tensions in the euro zone periphery expected to trigger further selling and a potential retest of key technical support.
The dollar lost steam after four days of gains but remained close to significant barriers which, if broken, could see its short-covering rebound stretch higher against the likes of the yen and euro.

China growth, euro zone debt in focus
LONDON, Nov 11 (Reuters) - European stocks edged lower , with Wall Street also set for modest losses, while the dollar firmed and copper prices pushed to a record high.
"The U.S. no longer appears to have the clout to push through its agenda. The G20 is unlikely to adopt targets on current account imbalances," said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking Corp.

20101112 1104 Soy Oil & Palm Oil Related News.

Last look Malaysia FCPO  dropped 2.77% @ 3301 following major commodities sell down as US Dollar rebounding stronger.

Soyoil futures rallied to new highs for the current uptrend in prices, climbing to new 26 month highs. Spillover support from advances in soybeans and supportive global demand outlooks served as the catalyst to underpin prices, analysts said. Soymeal futures ended higher, influenced by gains in soybeans, but advances were capped by active soyoil/soymeal spreading, traders said. CBOT Dec soyoil ended 1.08 cents of 2% higher at 55.03 cents a pound, while December soymeal traded $2.70 or 0.8% higher at $358.10 a short ton. (Source: CME)

Palm hits new 2-yr high on external markets, weather
KUALA LUMPUR, Nov 11 (Reuters) - Malaysian palm oil futures hit fresh two-year highs  as traders took positions on cues from upbeat global commodity markets and fears of heavy rains affecting output.
"External markets are giving Malaysian palm oil the strength to move upward and I believe the price could surge above 3,600 ringgit," said a trader in Kuala Lumpur.

Palm body finds 25,000 small farmers to be eco-friendly
JAKARTA, Nov 11 (Reuters) - An industry body that set up green standards for palm oil has found 25,000 small farmers supplying the vegetable oil to bigger corporations to be committed to preserving forests, a key official said on Thursday.
The Roundtable on Sustainable Palm Oil (RSPO), a grouping of planters, green groups and consumers, has formulated an audit system over six years for green small farmers that make up 30-40 percent of total global output of about 45 million tonnes.

Paraguay soy crushing industry starts to take off
ASUNCION, Nov 10 (Reuters) - Paraguay should be able to triple production of soyoil and soymeal by 2012 when two large new crushing plants are due to start operating, the head of an industry group said on Wednesday.
Soy production has surged in recent years in the South American country, which is the world's No. 4 supplier of soybeans though it trails far behind neighboring agricultural giants Brazil and Argentina.

Brazil soy crop forecast unchanged, cotton increased
SAO PAULO, Nov 10 (Reuters) - Brazil's crop supply agency Conab maintained on Wednesday its estimate for a near record soybean crop in 2010/11 while raising its forecast for cotton to what would be a new record.
Although the top end of Conab's soybean crop estimate would surpass last year's record crop of 68.7 million tonnes, the agency said it expected 2010/11 output to be slightly below last year.